Costco 
C7 dealer cost
Safety Car
Joined: Feb 2007
Posts: 4,939
Likes: 448
From: CHOCOWINITY NC
Exactly...It's referred to as absorption. Most al dealers make their profit here, NOT the sales Dept. A well run dealership covers all their costs here. The Sales dept. is just gravy
Last edited by Modshack; Mar 8, 2014 at 04:30 PM.
Racer
Joined: Jun 2008
Posts: 383
Likes: 42
It don't matter what the cost is. Dealers are in business to make money. If you don't like the price go somewhere else. Why give somwthkng away when you can make money. What do you want Obama to pass a law that dealers should sell at cost or a little above it
Drifting
Joined: Jul 2009
Posts: 1,358
Likes: 59
This is really funny. Guy wants to find out dealer cost so he can get dealer to sell him car for little or no profit on a car model that is not available in many cases for msrp. With this kind of warped commie thinking we soon will not have a fine car like the corvette. When are you guys going to understand that excellence does not exist where there are not profits. Drive a Yugo or its equivilant.
Team Owner
Joined: Jun 2005
Posts: 46,295
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From: Northern, VA
St. Jude Donor '15
"In honor of jpee"
Banned Scam/Spammer
Joined: Mar 2005
Posts: 8,083
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From: Bonita Springs FL
Invoice can be gotten from a number of sites. Here's the easiest to navigate: http://www.nadaguides.com/Cars/2014/...vette-Stingray
In addition to Invoice dealers have Hold Back which is paid quarterly. Hold Back is typically 3% of configured MSRP for Chevy cars. This is "banked" and paid quarterly on the block of business sold in the quarter. The amount isn't final until the dealers sales performance is factored in. Incentives factor into how much of this holdback they receive so it's not a hard and fast number.
There are also other charges such as co-op advertising and floor plan financing that factor into what the car actually costs the dealer in the end.
Regardless, what the dealer pays is really none of your business but I understand how people think knowing what the dealer makes give you an upper hand but on a hot vehicle it's really a moot point. Dealers set the price and if you aren't willing to pay it there are 10 in line behind you who will.
In addition to Invoice dealers have Hold Back which is paid quarterly. Hold Back is typically 3% of configured MSRP for Chevy cars. This is "banked" and paid quarterly on the block of business sold in the quarter. The amount isn't final until the dealers sales performance is factored in. Incentives factor into how much of this holdback they receive so it's not a hard and fast number.
There are also other charges such as co-op advertising and floor plan financing that factor into what the car actually costs the dealer in the end.
Regardless, what the dealer pays is really none of your business but I understand how people think knowing what the dealer makes give you an upper hand but on a hot vehicle it's really a moot point. Dealers set the price and if you aren't willing to pay it there are 10 in line behind you who will.
1) Exactly why is the invoice # "non of our business"?
2) It there are ten people in line for every C7 as you have indicated then why do some dealers advertise a come and get em approach with 60 in stock, unsold, and looking for a home?
Racer
Joined: Aug 2013
Posts: 400
Likes: 1
First GM raised the price because these cars are turning every 22 days according to a post I read the other day. I believe it is called Supply and demand and maximizing profit.
Second, If I could turn that money 15 times a year I would be making $15k on an investment of $60k, that is a 25% return on my investment. I don't think that can be beat in today's market.
Looking at some more realistic numbers; according to Costco, the difference between Invoice and MSRP on a Base LT1 coupe is about $4800. Given this, a $2K discount puts a gross profit margin at $2800 plus incentives. If we assume the dealer has a gross profit of $3k and they turn the cars every 30 days, they make $36k a year on a $60k investment. That is a 60% return. I would do that every day if I could. Of course I don't own a dealership and I don't know what the costs associated with owning one, but given that a lot of vehicles sit for long periods that return must be good.
When actually buying a car, it is one of the few places you can still negotiate a purchase price. If the price is too high for you, walk away. My threshold is lower than a lot of people on this forum, and higher than some. That could be why I don't own a C7 yet.
Second, If I could turn that money 15 times a year I would be making $15k on an investment of $60k, that is a 25% return on my investment. I don't think that can be beat in today's market.
Looking at some more realistic numbers; according to Costco, the difference between Invoice and MSRP on a Base LT1 coupe is about $4800. Given this, a $2K discount puts a gross profit margin at $2800 plus incentives. If we assume the dealer has a gross profit of $3k and they turn the cars every 30 days, they make $36k a year on a $60k investment. That is a 60% return. I would do that every day if I could. Of course I don't own a dealership and I don't know what the costs associated with owning one, but given that a lot of vehicles sit for long periods that return must be good.
When actually buying a car, it is one of the few places you can still negotiate a purchase price. If the price is too high for you, walk away. My threshold is lower than a lot of people on this forum, and higher than some. That could be why I don't own a C7 yet.
Good thing you don't run a business - you'd be bankrupt!
Safety Car
Joined: Feb 2007
Posts: 4,939
Likes: 448
From: CHOCOWINITY NC
Well...this has degenerated into what most every thread on Cost and price increase does... Mine is bought, my dealer made a fair profit that I am fine with, and I am happy to have one coming, to my spec, in a few weeks...
Goodnight girls..
Goodnight girls..
Le Mans Master
Joined: Jan 2011
Posts: 7,244
Likes: 3
St. Jude Donor '11-'12-'13-'14-'15-'16-'17
Smaller dealers will also sell most stock with relative ease if they are not being foolish about pricing, e.g. over MSRP. For example, here in the Chicago area we have several non-supporting vendor dealers that I can't name moving them out at a pretty good clip. One had seven in stock three weeks ago and has one today. Another has moved five off the lot in three weeks.
I don't track all the dealer's results; just a few owned by acquaintances. But the gloom-and-doom is very premature.
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Tech Contributor
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From: Should this thoughtful, valuable contribution meet with no acknowledgement or 'thanks' this post----
Drifting
Joined: Sep 2013
Posts: 1,505
Likes: 13
Sure, we all want to know this magic number because it's become readily available but you certainly have no right to it. The only number a dealer is legally required to show you is the MSRP.
To your second point, dealers that have a lot in stock sell over 1000 corvettes per year. That stock level covers about 14 days supply which is a fraction of the normal turn time on new inventory. And I didn't say there were 10 in line, it was a figure of speech.
Team Owner
Joined: Sep 2005
Posts: 29,113
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From: Big Bend Country, TX
St. Jude Donor '06-'07-'08-'09-'10-'11-'12-'13-'14-'15- '16-'17-‘18-‘19-'20-'21
NCM Lifetime Member
Yup ............. My thoughts exactly ............. 
Le Mans Master
Joined: Oct 2004
Posts: 6,813
Likes: 287
From: Toronto Ontario Canada
The OP asks a question about dealer cost and a few of you gang up on him and say its nobodies business. I don't understand that. Whats wrong with knowing what kind of price delta you have when you are negotiating a deal ? The dealer ends up screwing you on your trade-in anyway so why not have a little information to assist you in getting a fair deal.
Pro
Joined: Nov 2006
Posts: 708
Likes: 1
From: Wyoming DE
I have a friend that may or may not even know what a corvette is. I think he knows just about as much as anyone that has posted here as of yet. He told me $3.50. Darn, it was that damn lockness monster again.
Instructor
Joined: Dec 2013
Posts: 215
Likes: 2
From: Central Oregon
I dunno......not really any different than if I sell a sofa that I wanna get rid of......I'm sure as hell not going to tell a prospective buyer how much I have in it......its none of their biz......
Racer
Joined: Oct 2013
Posts: 398
Likes: 3
Since I had to pay the fed & state taxes at time of delivery for the C7 I won; the NCM rep showed me what MSRP was and then what GM charges NCM for the raffle cars. It was clearly a 10% difference . And federal taxes were based on what NCM was charged by GM!
Drifting
Joined: Sep 2013
Posts: 1,505
Likes: 13
I believe it's none of your business for the same reason it's none of your business what any company pays for product. What's important is are you getting the value you desire for the price asked. If the answer is yes then buy it. If not, don't.
Sure, we all want to know this magic number because it's become readily available but you certainly have no right to it. The only number a dealer is legally required to show you is the MSRP.
To your second point, dealers that have a lot in stock sell over 1000 corvettes per year. That stock level covers about 14 days supply which is a fraction of the normal turn time on new inventory. And I didn't say there were 10 in line, it was a figure of speech.
Sure, we all want to know this magic number because it's become readily available but you certainly have no right to it. The only number a dealer is legally required to show you is the MSRP.
To your second point, dealers that have a lot in stock sell over 1000 corvettes per year. That stock level covers about 14 days supply which is a fraction of the normal turn time on new inventory. And I didn't say there were 10 in line, it was a figure of speech.
My point regarding entitlement is simply what the dealer ultimately pays is private business information, that's all. BTW, invoice is not what the vehicle ultimately costs the dealer, it's simply one piece of the puzzle. In reality, the invoice has become the new MSRP.
Sorry to get confrontational, it wasn't my intent.
Last edited by mjw930; Mar 9, 2014 at 10:16 AM.