Anyone here know how much profit is usually baked into the MSRP for a car?

 

I've *heard* on GM cars it's basically a "break even" on their econo boxes, a couple to few grand on the midsize cars and 4-6K plus on the trucks/SUV's. Hmmmmm, kinda obvious to see why GM and others took a huge hit when gas prices doubled! The more "loaded" a car is, the more they make too. GM would much rather sell a loaded camaro than a basic base model.

 

it depends on the price of the car, there's no set percentage, but there's more profit margin on a Vette then there is on a Cobalt. And Trucks have even more. Figure about $2,000-$2,500 for a $25,000-$3,000 car.

 

My dealer does not typically charge over MSRP, so I don't intend to pay over that. If he does, I'll find another dealer who won't charge me.

 

My company has supplier discounts with the big 3...+ toyota and volkswagon. I dont even want to pay msrp If I was forced to, I would likely just grab the Challenger instead. As it is now it's a ttoss up for me.

 

I won't pay over MSRP, plain and simple.

I've dealt with too many dealerships who act as if their overinflated price is the only price you're going to pay. They refuse to negotiate with you, especially if the car you're looking for is a "hot" car. The easiest thing to do in that situation is to walk off the lot and go somewhere else. You'll find a dealer who's willing to work with you eventually.

 

I have always got my new cars under invoice. Just got a 2008 Toyota Yaris for $500 under invoice. Couldn't justify paying 50 a week for gas in my minivan when I can pay $25 to drive the same distance. Got my 2006 Caravan for a grand under sticker, my 99 Voyager 2 grand under, and my 95 Birdible 2 grand under. Shop around there will be dealer that will make you happy. My Toyota Dealer wants to sell me another car and he said I can get it for a grand under invoice since I just bought one. Still thinking about it but just lost my job after 19 years as it got outsourced to India.

 

Another thing to keep in mind is with the new deal GM has with the UAW, profit margins should be better for GM, and that *could* translate into lower sticker prices. Last I knew roughly $1500 of every vehicle GM sold went to fund retiree pensions and healthcare, instead of going to the bottom line of the company, reinvested into product development and improvment, or decreasing sticker price. Now it's supposed to be transfered to an account managed and funded by the union, freeing it up for GM. But when that's supposed to happen is beyond me, and I don't know if it affects CAW produced cars (which we all know the Camaro will be). Unless GM can or has already negotiated a similar deal with the CAW.

I'm think Scott would have much more accurate information there.

 

I think I (accidentally) started several price threads with my rant about Canadian MSRP...oops

However in answering this question I have to say "as little as possible" and hope no one takes that as a smart-*** comment.

Given the initial demand will be high (and I expect) far more than initial supply, the prices will be higher...remember that in economics, the price of a good or service should be "as high as anyone is willing to pay for it".

So I will wait until demand has flattened out (year 2 or 3 depending on problems) and see what prices are like then. And if they are cheaper in the US (and warranties will be honored cross-border), I think I will get a broker to bring over a car for me.

My 2 cents.

 

**** this, I will NEVER NEVER PAY MSRP for ANY car.

Let alone anything over it, people who pay over the MSRP for a car are either dumb, retarted, stuipid, or just dont know any better.

IMO. Sorry if this is mean, but seriously, getting ripped off is not something I am "willing" to negotiate.

Stealerships make more money off crappy *** service, and selling extended warranties than most people will ever know. And dont even get me started on the "accessories", and other bull**** like "paint protection" that they try and weasel into every sell.

SO SCREW THEM, because thats what thier doing, screwing people, at least most of them are, and I will pay a little over invoice and nothing more. there is no way I will every pay a dealer a profit when they decieve, and snake oil sell all that other crap that they do.

I love all these people in here whining about how the dealership never makes money off an invoice car, BULL CRAP. They will always find someway of making money. ALWAYS.

 

Heres a link http://www.woodhouse.com/

No chevys, but they did it for my grand cherokee and a Dakota R/T they had left over.

They are the reason why ive never bought a new Camaro. Cheap bastards.

See what they are charging for challengers if you contact them.

 

I don't know how the percentages are set up in this day and age, but I do have a pretty good idea how it was in the late '60s/early '70s (as I worked for a couple of GM dealerships for a while). Compacts were 12% of MSRP, mid size 14%, large (read Implala) 18%, the dealer also received a 1-2% rebate from GM once the car was sold. Now that has been a few years ago and I may be off a couple of percent here and there (the memory gets fuzzy on facts you have not dragged up in years) and I'm sure that things have changed a great deal in the automotive industry since then, so I have no idea what the dealers take is today. Oh, and I will not pay a cent over MSRP, not even a couple of hundred dollars "processing fee" for them doing the paperwork that they are already required to do by law.
Clyde

 

I don't feel the need to be the first on the block with any car. So that would be $0.

 

I popped in at $500 above. Solely for the reason that we were asked what would you be willing to pay?

At any given time during the first year, I'd accept a 500 dollar markup. no more. After that ~year however, no markups for me. No way in Hell!

 

I love the car ( I can't wait to have one), but no way will I be paying more than MSRP ( U.S. Price )...

There's at least a couple of hundred guaranteed sales here, what are the chances of G.M. creating a special buying option for enthusiasts " CamaroZ28.com option " ?? Wouldn't that be cool