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Discussion Starter #1
Anyone know dealer profit for a base Z06 at MSRP? Mine with options totals $91730. I know the profit is better the more options added. Im just curious and happy to be paying MSRP. Im guessing around $6-7K. Any ideas?
 

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I can tell you for my car at $97K the difference between invoice and sticker is about $9K. It's $7K just for the base car. $78K sticker $70,980 invoice.
 

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When it's all said and done the dealer will gross around $12K on your $91K Z06. Net profit is impossible to calculate not knowing the dealer's financials but it is significantly less.

They will Net much less than 10% which in the retail world doesn't keep many doors open. Much more money is contributed to the bottom line to keep these dealerships open then the profit on individual new car sales. I know I would get laughed out of my banker's office if I brought a business plan to them that showed less than 10% margin on goods.........
 

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Still significantly less than what Porsche makes for every car they sell.... "According to Bloomberg Businessweek, Porsche makes $23,000 on every car it sells, for a profit margin of 18 percent."
You're mixing metaphors, so to speak. The article you posted is manufacture's profit, not the dealers profit. Totally irrelevant.
 

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Yup but the principle is still the same... the dealer likely has a larger profit margin since there is a bigger window after all. I'm about to buy a new Porsche (Macan S I ordered) and the invoice vs. msrp is quite large when compared to the C7's invoice vs. MSRP.
 

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Yeah the dealer also relies on financing and warranty sales. Not to mention service. This was in no means a bash on dealers, specially ones selling at MSRP. I just find it crazy that some want $10-25K over MSRP. I understand supply and demand and some will pay that but I believe 10% is fair.
 

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Yup but the principle is still the same... the dealer likely has a larger profit margin since there is a bigger window after all. I'm about to buy a new Porsche (Macan S I ordered) and the invoice vs. msrp is quite large when compared to the C7's invoice vs. MSRP.
No so much. I configured a Macan S with the options I would want and the difference between MSRP and Invoice are within 1% of my $67,000 C7. Pretty much a wash, percentage wise.

Screen Shot 2014-10-03 at 4.30.34 PM.png

BTW, the margin on a Corvette is one of the highest in the GM lineup. Almost 50% more than a similar priced Tahoe or Suburban. Corvette margins are much closer to Porsche, Audi and Mercedes margins than traditional GM margins.
 

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Yeah the dealer also relies on financing and warranty sales. Not to mention service. This was in no means a bash on dealers, specially ones selling at MSRP. I just find it crazy that some want $10-25K over MSRP. I understand supply and demand and some will pay that but I believe 10% is fair.
YellowZ06, I know how you feel and I agree with your 10% fair profit but come on this is america and capitalism if you were a dealer and there is a demand you would try to squeeze as much profit out of that demand as possible? Am I right?
 

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No so much. I configured a Macan S with the options I would want and the difference between MSRP and Invoice are within 1% of my $67,000 C7. Pretty much a wash, percentage wise.

BTW, the margin on a Corvette is one of the highest in the GM lineup. Almost 50% more than a similar priced Tahoe or Suburban. Corvette margins are much closer to Porsche, Audi and Mercedes margins than traditional GM margins.
Yeah I had more options and the invoice-sticker difference was creeping up towards 10K, although after alot of negotiating I was able to get 3K discounted... the C7 margins are indeed up there though, I agree.
 

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Discussion Starter #13
YellowZ06, I know how you feel and I agree with your 10% fair profit but come on this is america and capitalism if you were a dealer and there is a demand you would try to squeeze as much profit out of that demand as possible? Am I right?
There are two ways to look at it. If I were a small dealer and no hopes of ever growing a larger repeat customer Corvette base , than of course I would jack the price. But as like my business, I rely on repeat business and run MANY sales. Of course PER UNIT profit is lower but in the long run and end of year sales are MUCH higher than if I didnt lower cost.
 

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Yeah I had more options and the invoice-sticker difference was creeping up towards 10K, although after alot of negotiating I was able to get 3K discounted... the C7 margins are indeed up there though, I agree.
Yep, you can build another car in the options lists with Porsche. LOL My wife once built a $100,000 Boxster on their site and that was when the base MSRP was $50K!!!!
 

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I am happy with what I will be paying for my Z06. The Z06 has the fourth highest torque of every 2015 production sports car, with the other three that have more torque, costing an average of $1,105,000.

Glad my dealer is making a good profit, for he is sure not making much on the Sonic, Cruze,etc., that they need to sell in volumes to keep their doors open. I can not believe I am getting 650 HP/650 TQ a in a car that is so gorgeous, handles and brakes so well, for the $92,900 I am playing for my 3LZ, etc., etc., etc..
 

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Assessing a fair profit for any business should reflect how much money is invested, for how long, and the level of risk.

If I can realize the retail sale price before or when I pay my supplier for the sold item, and I can sell every unit of the item I can get my hands on, then the investment is zero, there is no money tied up or invested, and the risk is near zero. Of course, my overhead has to be covered by all of my sales, but it would seem to me that the z06 is a cash cow.

On the other hand, selling Vipers is a different proposition.
 
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I just tried to trade my C 7 LT 2 51 package and clear top.
Dealer allowed me 50000.With 3400 mi.I don,t think I will trade.
First year depreciation is a bitch. Even with the price increases a 2LT Z51 only costs the dealer about $56k (assuming no other major options) so while $50k seems a bit low it's not surprising.

Unless demand greatly outweighs supply, which it doesn't anymore, a dealer will never purchase your used car for what they can buy the exact new car from GM for.
 

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Yes 50,000 is bit low. I would not feel 55,000 would be fine with say a 3,000 dis.I was a dealer and know you need to make money but not rape someone.
 
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