Vfacts june 2016

[Hawkeye84]

Originally Posted by olds

I don't want to quote anybody but the old chestnut of as long as you make a profit on every car it doesn't matter how many you sell that has been trotted out on this forum so many times is a load of crap and the flogs that profess this can go back and read their old posts and see where ford Aus are now .The proof is in the pudding if you sell volume at a loss the company can be profitable by making a profit on after sales service. If you sell by profit per item and are not a prestige marque and sell a quality product like Ferrari etc. you will cease to operate. Too all that disagree with me look at what has happened to the Aus car industry and get stuffed

Absolutely youd want to make profit on cars. If its selling at volume even better! Theres more money selling cars than parts and after sales.

Youll find that if a car manufacturer is fully relying on after sales/service to make money - theyll be out of the business as no customer wants to spend a bomb to maintain one.

Sales/profits from cars comes first - revenue from after sales comes as a result of the first. Not the other way around

[Adamz Ghia]

Originally Posted by Hawkeye84

Absolutely youd want to make profit on cars. If its selling at volume even better! Theres more money selling cars than parts and after sales.

Youll find that if a car manufacturer is fully relying on after sales/service to make money - theyll be out of the business as no customer wants to spend a bomb to maintain one.

Sales/profits from cars comes first - revenue from after sales comes as a result of the first. Not the other way around

Dealers make their coin from after sales, parts and service.

[BENT_8]

Originally Posted by Adamz Ghia

Dealers make their coin from after sales, parts and service.

Exactly, every Dealership i've ever worked in was held up by the service dept and spare parts.
Very little comes from sales.

[Spammy]

Originally Posted by Adamz Ghia

Dealers make their coin from after sales, parts and service.

I thought finance commision was the biggest earner for many dealers.

[Hawkeye84]

Originally Posted by Spammy

I thought finance commision was the biggest earner for many dealers.

Yeap, finance is all profit for them too.

Dealers make their coin from after sales, parts and service.

When attached to selling a car........got to sell the car first......

Like i said, Sales is number 1, parts and service comes as a result of the sale.

Otherwise, why on earth would these dealers bother with a showroom then? Why sit on millions of dollars worth of stock/risk when the money is all coming in from just parts and afterservice.

How many dealers do you know of that just have parts and after service without showroom?

[vztrt]

Interesting to see people mix up a dealer with the actual car company.

[mcflux]

Originally Posted by vztrt

Interesting to see people mix up a dealer with the actual car company.

Without the affiliated dealer the car company doesn't make sales.

[danzvtil]

Originally Posted by Ghia5L

Without the affiliated dealer the car company doesn't make sales.

The point you missed is FOMOCO don't make money on servicing, the dealer does.

[mcflux]

Originally Posted by danzvtil

The point you missed is FOMOCO don't make money on servicing, the dealer does.

The point I was making was the dealer sells the car.

[Hawkeye84]

Sorry, i stand corrected.

Parts and after service is where its at in dealerland

[Spammy]

Was talking to a guy in the finance area of the trade and he was bemoaning how little the dealers are making on the stratight sale of a car i.e. before options, finance etc.

He claims $100 on a average Ford is a good outcome, $50 is not unheard of.