"Prepare for a brutal future" Farley tells dealersThere's a handful of dealer chains that are public corporations (they issue stock) and thus have to publicly report their financials and break down profit by area. Pre-COVID they usually reported single digit profit margins for new and used sales and profits ranging up to around 30% for parts and service. With the current auto shortage those sales profits have improved a bit. In this brave new world of new car sales at MSRP which is the same as Invoice price dealers will only have Holdback and other incentives to cover the overhead of new car sales and hopefully turn a profit. The good news is that this new sales model will reduce overhead substantially as expenses like sales staff salaries, flooring cost, and acres of storage space are reduced.Sun, 05 Jun 2022 19:05:01 +0000
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