Dieselman
Banned
- Joined
- Jul 13, 2003
- Messages
- 34,199
- Car
- Peugeot 403 Convertible
It's not though, is it? There certainly isn't 70% margin on new cars. I believe it's more like 10% though the figures are obfuscated by tax, VAT and OTR charges
The sales and finance companies are separate and each has to wash its face.
There is more than 10% discount available from list price, so the real figure must be better.
Don't forget, that includes the profit of the sales company in Germany, the sales company in the UK, the dealers margin and transport and admin costs.
The larger parent company will be most interested in the factory making a profit and churning out cars. The more cars on the road, the greater the after-sale revenue.