Drop Off Your Trade Before Delivery - Page 2
Cadillac
 

Cadillac Forums | Help Us Help You | Advertise | Cadillac Parts | Cadillac News | Cadillac Classifieds / (Old System)

Cadillac Technical Archive | Cadillac Dealers | Cadillac Reviews | Cadillac Dealer Reviews | Cadillac Vendors

CadillacForums.com is the premier Cadillac Forum on the internet. Registered Users do not see the above ads.
+ Reply to Thread
Page 2 of 2 FirstFirst 1 2
Results 16 to 22 of 22
Like Tree2Likes
Cadillac XTS Forum Discussion, Drop Off Your Trade Before Delivery in Current Cadillac Vehicle Discussion; Originally Posted by CAPT Mike I agree with some of what you are saying, but the question is what is ...
  1. #16
    '12CTSman is offline Cadillac Owners Fanatic
    Automobile(s): '13 SRX AWD Premium
    Join Date
    May 2012
    Location
    Indiana
    Posts
    249

    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by CAPT Mike View Post
    I agree with some of what you are saying, but the question is what is the trade value? What you find on the various internet sites, the local auctions, or ? Right now I can find at least 6 different trade values for my X5. My point is like the price of the new vehicle is a given, the MSRP. We know what the dealer pays for it. Give the dealer a reasonable profit margin and you have a solid price. Not so with the trade value. I have bought many vehicles over my lifetime and most of them were ordered as I don't like to buy a vehicle that is only close to what I want off the lot. When the deals were made with the trade, regardless of time it took for delivery, the trade was made at delivery with the value being the value. And if there was a new rebate, why not expect it? After all, it was coming from the manufacturer and not out of the dealer's pocket.
    Whoa there Captain! The MSRP is not what the dealer pays for any car. Only a few people actually know at the dealership what the owner pays for his/her cars. Even so-called "Invoice" is usually several thousand more than what the dealer actually pays and then there is the "holdback" (sort of a rebate) the dealership gets back from the manufacturer, which can be anywhere from $2% to 5% or more on the MSRP after the vehicle is sold. Most dealerships have to make at least $2K/vehicle in profit to stay in business and most make way more than that, especially the luxury brands like Cadillac. Always use the invoice price as the starting point for negotiations before you even mention a trade. The "depreciation" of a new car once you drive off the lot is usually near what the dealer makes off of you and his/her cost of business.

  2. #17
    CAPT Mike is offline Cadillac Owners Fanatic
    Automobile(s): 2013 XTS
    Join Date
    Sep 2012
    Location
    Boiling Springs PA
    Age
    67
    Posts
    196

    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by '12CTSman View Post
    Whoa there Captain! The MSRP is not what the dealer pays for any car. Only a few people actually know at the dealership what the owner pays for his/her cars. Even so-called "Invoice" is usually several thousand more than what the dealer actually pays and then there is the "holdback" (sort of a rebate) the dealership gets back from the manufacturer, which can be anywhere from $2% to 5% or more on the MSRP after the vehicle is sold. Most dealerships have to make at least $2K/vehicle in profit to stay in business and most make way more than that, especially the luxury brands like Cadillac. Always use the invoice price as the starting point for negotiations before you even mention a trade. The "depreciation" of a new car once you drive off the lot is usually near what the dealer makes off of you and his/her cost of business.
    Of course, the dealer does not pay MSRP. What we mere mortals can find out is what the invoice is on a vehicle. With all your info which is, of course, held close to the vest of the dealership, we as consumers have to come up with a reasonable amount of "profit" margin over the invoice. $500 seems IMHO a fair profit margin + all the rest that you said. But since we all haven't fallen off the turnip truck yesterday, we all know that the dealership is out to make the most money that it can. And that's OK. But it's also OK for us as consumers to fight for the best deal. My original question was what was a GM dealership's normal operating philosophy when it came to tradeins and early dropoffs. I do appreciate all of the folks who responded.

  3. #18
    thebigjimsho's Avatar
    thebigjimsho is offline Cadillac Owners 10000+ Posts
    Automobile(s): ZIP
    Join Date
    Jun 2004
    Location
    In the barrel of a gun...
    Posts
    49,317
    I'd love to see the car dealer landscape working on $500 per car profit...

  4. #19
    Jesda's Avatar
    Jesda is offline Super Moderator
    Automobile(s): An endless stream of Sevilles.
    Join Date
    Sep 2003
    Location
    St Louis MO
    Age
    32
    Posts
    22,202

    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by thebigjimsho View Post
    I'd love to see the car dealer landscape working on $500 per car profit...
    They often make it up with used sales and service.

    Used cars are more profitable anyway.

  5. #20
    CAPT Mike is offline Cadillac Owners Fanatic
    Automobile(s): 2013 XTS
    Join Date
    Sep 2012
    Location
    Boiling Springs PA
    Age
    67
    Posts
    196

    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by thebigjimsho View Post
    I'd love to see the car dealer landscape working on $500 per car profit...
    $500 over Invoice (that the consumer sees) + holdbacks, incentives = a lot more profit. My father-in-law was a Ford salesman and he would sell a vehicle for a $100 over invoice and still be making money; he's passed on, but the dealership is still alive and prospering.

  6. #21
    The Tony Show's Avatar
    The Tony Show is offline See you in the funny papers
    Automobile(s): 04 CTS-V, 05 STS, 07 SRX- All sold :(
    Join Date
    Dec 2004
    Location
    The Internet
    Posts
    26,274
    I see a lot of people questioning dealership integrity in the service department, or their willingness to bend over backward to make the customer happy. Both are a reflection of a dealer making poor profits.

    The megastores that roll out the red carpet and have all the niceties? They're able to do that because they're making money. Force dealers to razor thin margins and watch the quality of service plummet.
    Rest in Peace, J.D. (aka Dirt_Cheap_Fleetwood)

  7. #22
    thebigjimsho's Avatar
    thebigjimsho is offline Cadillac Owners 10000+ Posts
    Automobile(s): ZIP
    Join Date
    Jun 2004
    Location
    In the barrel of a gun...
    Posts
    49,317
    Quote Originally Posted by CAPT Mike

    $500 over Invoice (that the consumer sees) + holdbacks, incentives = a lot more profit. My father-in-law was a Ford salesman and he would sell a vehicle for a $100 over invoice and still be making money; he's passed on, but the dealership is still alive and prospering.
    True. I thought you were saying $500 total profit...

    ----------

    Quote Originally Posted by The Tony Show
    I see a lot of people questioning dealership integrity in the service department, or their willingness to bend over backward to make the customer happy. Both are a reflection of a dealer making poor profits.

    The megastores that roll out the red carpet and have all the niceties? They're able to do that because they're making money. Force dealers to razor thin margins and watch the quality of service plummet.
    Exactly. That $25 difference per month on a $70k car is not something I sweat...

Quick Reply Quick Reply

Register Now

Please enter the name by which you would like to log-in and be known on this site.
If you do not want to register, fill this field only and the name will be used as user name for your post.

Please enter a password for your user account. Note that passwords are case-sensitive.

Please enter a valid email address for yourself.

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



Bookmarks

Cadillac Posting Rules

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
Read about Lincoln | Buick | Kia Forte Forum
Need products for your Cadillac? Check out your options at the links below:

custom floor mats | Cadillac Chrome and Black Chrome Wheels | window tinting