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      09-10-2006, 04:24 PM   #12
First Lieutenant
sarafil's Avatar

Drives: '16 550xi
Join Date: Oct 2005
Location: Boston, MA

iTrader: (2)

Originally Posted by SoYank
I've never worked in a car dealership but it seems to me that the original poster has done all of the work. There is no salesperson required. The only thing the dealership need do is enter the requirements into the order computer, take delivery, and tax and license the vehicle. The delivery and handling (dealer prep) is included ($695), the buyer has already stated he would pay actual tax and license fees. How long will it take the sales department to do minimal work? If the dealership does it right they could wiggle a bunch of coveted 5's which I understand translates to profit in the form of bonus. Plus, wouldn't the "sale" help in increasing their allotment numbers?

Maybe I've just slipped my clutch.
A few comments:

Yes, the client has done most of the work here by knowing what he wants. But, on the other hand, clients that come across with all this info and act like they know everything (which they probably do!) are also very high maintenance and WILL be calling/emailing you ALL THE TIME looking for status updates, etc. It's not like you place their order, take their money, and they go away. You still need to put a considerable amount of effort into responding to their requests for constant updates. For this, you should be able to make a **reasonable** profit. On a new, just out of the box 335i, I don't think $600 over invoice is reasonable.

Also, ED cars do not come out of dealer allocation. That means that this sale does not earn the dealer a future car, and it does not get a CSI follow-up call so no extra bonus for the dealer.

Finally, let me just clarify that I am not opposed to discounting as necessary to make a deal. A skinny deal is better than no deal at all. But, when someone sends you a fax or email saying "I'll buy this car from whoever sells it to me for $600 over invoice or less", it comes out as very impersonal and I have zero interest in even reading the rest of the message. If you walk into my showroom and are showing me signs that you are ready to buy from me if the numbers work, that's a different story. I won't respond to this $600 over invoice fax/email, but there's a good chance that I'd take that deal from soming sitting in front of me if that is the deal that we finally agree on.
2016 550i xDrive Sedan -- Alpine White / Mocha Leather, M Sport, Exec, Driver Assist and Cold Weather Pkgs

Former: 2013 335i xDrive Sedan -- 2011 335i xDrive Sedan -- 2011 335i xDrive Coupe -- 2009 Mini Cooper S JCW -- 2006 MZ4 Roadster -- 2002 325i Sedan -- 1997 318ti -- 1991 318i