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Thread: What recession??

  1. #31
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    Quote Originally Posted by Franco View Post
    I don't know of any dealerships that do not add a "pack" to thier invoices.

    In other words, the management company gets invoiced from the mfg. The mangement company then turns around and delivers the vehicle to the dealership with the "pack". That "pack" helps to cover some of the dealerships cost.

    Are you saying that cost to dealerships are no longer "packed"?

    Also, though Asian mfg's do not employ UAW workers in most of thier plants, the additioanl cost can usually be attributed to the foreign exchange rate.

    P S
    I am going to drive my 07 F150 until I can buy a new vehilce that runs on CNG.
    As far as I know, all the manufacturers work the same as GM. GM sells directly to its dealers and only to its dealers, and they bill the dealer directly through an Electronic Funds Transfer system that all dealers are required to be on. The invoice is generated by GM at some point just as the vehicle is finished being built, and sent to the dealer electronically. As a customer, you have the right to see the factory invoice, and there are no administrative fees added to it.

    I use a program for work that allows me to configure and price vehicles. I can tell a customer or dealer exactly what a particular vehicle will cost to the penny. It calculates MSRP, Invoice, and Dealer pricing. I can do that for all the manufactures. I use it compare our pricing to Ford or Chrysler’s.

    I don’t know what a “packed” invoice is, and I do not know about any management companies. I don’t know why a dealer would need a management company. Manufacturers train dealers how to manage their dealerships, and provide Regional sales and service managers to help them keep their business on track, manage their inventory, and stay profitable.

    I do know in Chicago, there are brokers that procure vehicles from dealerships for customers, and many of the customers never go to a dealership. I’m sure there are additional fees they add on. However, those people still have the right to go into the dealership and deal directly. Still these vehicles are sold directly to the dealership by the manufacturer.

    As far as why the Asian vehicles cost as much as those from U.S. manufacturers, vehicle prices are established based on what the market will bear. Haven you noticed that all the vehicles in a segment (compact, mid-size, etc.) are all priced about the same. That is by design. It wouldn’t matter if some manufacturer could produce the vehicle for a penny, they would still price them at the same level. The profit margin would just be higher. That’s why Japanese cars and trucks cost what they do.

    GM now manufacturers cargo and cutaway vans with a CNG option direct from the factory. Although nothing has been released officially, the word is pick up truck will be next in a year or two.

  2. #32
    Senior Member Nor_Cal_Angler's Avatar
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    Quote Originally Posted by M&K's Retrievers View Post
    My 2001 F-250 Diesel with 274,000 miles looks better every day. My goal is 500,000.

    Hope you have a Cummins in that.....lol
    ...or should I say, you will need a Cummins in that to make it....lol
    Good Luck


    Quote Originally Posted by BonMallari View Post
    I will buy my own guns, but if they throw in a duck/goose hunting lease, then I could be persuaded to take a look...as long as its not a Dodge
    I'm hurt...soooo, sooooo hurt....lol

    NCA

    1999 Dodge 2500 CTD...374K sold it to a friend he still has it..452K
    2001 Dodge 2500 CTD 93K

  3. #33
    Senior Member Franco's Avatar
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    Quote Originally Posted by Blackstone View Post

    I don’t know what a “packed” invoice is, and I do not know about any management companies. I don’t know why a dealer would need a management company. Manufacturers train dealers how to manage their dealerships, and provide Regional sales and service managers to help them keep their business on track, manage their inventory, and stay profitable.
    Mangement companies are your "mega dealers". For instance, there is a comapny in Dallas that owns over 200 dealerships across the southwest and southeast. Vehicles are shipped directly to the dealerships but the invoices go to the parent (mangement) company. They in turn pack the invoice to cover some of thier internal cost.

    Example; The mangement company gets invoiced for $20,000 for a vehicle. They in turn pack it with an additional $800 and invoice the individual dealership $20,800. which is the cost to the dealership.
    It's such a shame that in the USA, defending Liberty has become such a heroic deed.

  4. #34
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    Quote Originally Posted by Nor_Cal_Angler View Post
    Hope you have a Cummins in that.....lol
    ...or should I say, you will need a Cummins in that to make it....lol
    Good Luck




    I'm hurt...soooo, sooooo hurt....lol

    NCA

    1999 Dodge 2500 CTD...374K sold it to a friend he still has it..452K
    2001 Dodge 2500 CTD 93K
    Just met with a potential customer last Friday that was pissed because he can't get more than 100k out of his Dodge diesels before they break down. He has 46 of them. He's not happy.

  5. #35
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    Quote Originally Posted by Franco View Post
    Mangement companies are your "mega dealers". For instance, there is a comapny in Dallas that owns over 200 dealerships across the southwest and southeast. Vehicles are shipped directly to the dealerships but the invoices go to the parent (mangement) company. They in turn pack the invoice to cover some of thier internal cost.

    Example; The mangement company gets invoiced for $20,000 for a vehicle. They in turn pack it with an additional $800 and invoice the individual dealership $20,800. which is the cost to the dealership.
    In the case of mega dealers, the owning company is the Dealer Operator. I can’t speak for the other manufacturers, but GM only sends invoices to the ordering dealer, which means the company in Dallas would have to have a dealership available to them to place all orders through (orders can only be placed through special systems that are installed at dealerships). That would mean every dealership would have to forward every order to this management company for input, or each dealership would have to forward every invoice they received to the company. Either way, it would be a terribly inefficient way to run a dealer company. Maybe that’s why they need to pack their invoices.

    I guess none of that really matters. What’s important is that you have the right to see the manufacturer’s invoice. I would walk out of any dealership that wouldn’t show me the original manufacturer’s invoice. You should not be paying any additional “packed” in charges. The profit margin the dealer makes on the deal covers their administrative and operating expenses. Adding additional administrative fees would be like going to a clothing store, having them mark up the clothes by 18% for their profit, then charge you extra for ringing it up at the cash register. I am not sure how any manufacturer would allow a dealer to get away with that practice.

    Unfortunately, there is a lot of misinformation out there about how vehicles are priced. Most people don’t understand as much about it as they should, especially when it comes to leasing. That’s how they get ripped off at the dealership.

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