andybrad
Member Since: 18 Oct 2009
Location: Kent
Posts: 9
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I know this wasn't the initial question, but while we are in the mode of guessing, I would go for something around 20% overall, with about half of that up for negotiation. Is there a prize for the nearest guess ?
Drifting slightly further off-topic, the whole car industry has operated has operated below break-even over the last few years, and the winners must have been the buying public. Manufacturers have lost money, component suppliers have lost money, dealers have lost money (count how many have posted losses or have gone out of business altogether), yet car prices in many cases are the same as you would have paid 10 years ago. If you follow the Aston Martin example, the company has gone bankrupt several times over the years, and must still be fairly marginal.
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 29th Jun 2010 11:24 pm |
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RichardB
Member Since: 04 May 2010
Location: Hants
Posts: 485
  
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colin6307 wrote:No, what is % profit on a new D4, anybody know?
Cheers
I suspect there is a bit of talking at cross purposes here. There is a big difference between the initial %age markup on a unit and the final profit margin per unit once all operating costs are factored in.
Most customers focus on the 'massive and unreasonable' %age markup. Most retailers focus on their 'diminishing and tiny' overall profit margin. 
Notwithstanding this, it's completely reasonable to assume that it's the markup that's fair game for your negotiation as any unit sold above the purchase price contributes to the operating costs and (it seems in this particular situation) additional units also count towards end of year volume rebates to the dealer. (In tough times, it could well be the case that dealers could be relying on that final volume rebate for most/all of their profit and this could create real cash flow issues and agitated bank managers towards year end.)
However, shaving that markup with Land Rover dealers looks to be pretty difficult at present as it seems to be a seller's market given that that dealers seem to be able to sell more than they can source. 
I'd be surprised if the initial markup was less than 20% though.
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| 30th Jun 2010 12:31 am |
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