How much of each cars price is advertising?

[IndyIan]

Originally Posted By: bdcardinal
Originally Posted By: Jetronic
Originally Posted By: edwardh1
our Honda dealers (and Kia) run ads all day long over the radio " Hi Im fred Smith general manager of xyz honda , and have a great deal for you.

what does this add to the car cost? it certainly adds no VALUE


I work for a dealer, and the annual advertising/showroom/preparation costs exceeds what we make on the sale of new cars.


I can vouch for this. There are some new cars, mostly Fiesta and Focus where the net profit is in the $100-250 range for the dealer.

Hmmm, up here I think more people pay MSRP than in the US. One of my coworkers sister is married to a medium sized dealership owner and they aren't hurting for cash...

 

[willbur]

I remember reading about 10 years ago that car manufacteurs spend $13 billion/year telling us what car we want. Thst money has to come from somewhere. Guess where?

 

[dareo]

Too Much. It's almost 2017. We need to be able to just research cars online and place a direct order to the manufacturer if we want to. Local franchise dealers can sell to Johnny GottaHaveItNow and make money on parts and service. It has been estimated that about 20% of the car price is eaten up by ads and traditional dealer overhead.

*edit* We already pay a HUGE destination charge to the dealer/MFG so shipping the car from the factory to your house would likely cost less or the same.

How many of you are able to figure out exactly what you want and can just order it up for 20% off?

 

[Jetronic]

Originally Posted By: IndyIan

Hmmm, up here I think more people pay MSRP than in the US. One of my coworkers sister is married to a medium sized dealership owner and they aren't hurting for cash...


the money is made afterwards, not on the sales. but no sales of new cars = no maintenance and repairs