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Take it from me, IT'S NOT PROFIT!
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Posted by keeton (more from keeton) on Mon, 14 Oct 2002 14:11:23 Share Post by Email
In Reply to: Edmunds always..., b.flippo, Mon, 14 Oct 2002 12:46:50
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Well, it may not be as profitABLE, but holdback is a component of the overall markup of the product - especially Saabs. The fact that Saab hides it at two levels ("dealer invoice" and "dealer net") is just to confuse the so-called educated customer who is used to dealing with an invoice-only cost figure. Saab is not the only low volume seller in it's class. Audi, for one, does not have the same holdback as Saab and has to mark its cars up to compensate.

Yes, profits on new car sales are typically slim but the only real victim is the new car salesman working on commission. There are other profit centers at a dealer (F&I, service, used) that do _quite_ well, thank you. The only dealers I've ever known to fail were either screwing the customers so badly that their franchise was yanked or severe mismanagement where profits were going up the GM's nose.

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