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Can someone explain this to me?

Nighthawk
How does the car Dealerships operate? For example they may have 200 cars on the lot, do they have to buy each of these cars and if they are several that dont sale then what? There's several hundred thousand dollars worth of cars on some of these lots. I know they cant afford to buy that many cars to sale at once. One more question on average how much commision does the average car salesman make on a sale?
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Comments

8 comments

Date Votes
  • Nighthawk
    How does this guy keep the weight off center? Only to have it center up after the bridge?


    http://wimp.com/mastbridge/
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  • Nighthawk
    quote:

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    tom
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  • He Dog
    They finance the cars with commercial loans. They are not going to tie up their money in cars on the lot. Oh, you pay the interest when you buy.
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  • buschmaster
    what doesn't sell to customers, they sell wholesale to a different dealer so their lot doesn't get clogged up. I don't know anything about commission or how sales goes.
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  • KEVD18
    some dealers pay cash for their cars(or atleast they advertise they do).

    but thats the general idea. a car sits on the lot for x days. if it doesnt sell, it gets wholesaled off to a smaller dealer.
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  • bigtire
    New car dealers finance the money to buy inventory. If a car is on the lot too long they discount it to get it sold. at the end of the year they get a kind of rebate from the manufaturer called Hold Back. Hold back can amount to as much as 8 percent of total sales for the year. The greater sales volume the higher the percentage. That's why you can find better deals at larger dealers and how dealers can sell at envoice price and still make money.

    Dealers also make money on in house financing. They also make a LOT of money on trade ins.
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  • Nighthawk
    Thanks for yhr replies, they answered my quetion.




    Best!!
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  • drobs
    What do they do with all the last years models at the end of the year?
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