|
Owning a franchise is more about the service and used car revenue than new cars. There's no money in them anymore, too much competition and savvy buyers who only need to do a few minutes of research to be versed in price.
I believe all new car dealers should sell on a fixed, discounted price, and get paid a small percentage, 3-5% at the most. Where they can make their money is on financing, wholesale/used, and service.
If you look at a new Chevrolet pickup truck, the asking price is $40,000 for a mid level equipped 4x4 crew cab silverado. Ridiculous, but you feel good when they can give you $8000-10,000 off in dealer incentives and discounts. If they were all priced the same at the get go and HAD to stay there, alot less headaches for dealers.
The Toyota brand Scion is this way, and works well.
|