Low profits on new cars
LOW PROFITS ON NEW CARS
Car dealers are complaining their profit margins on new vehicles are far too low. That’s according to Earl Hesterberg, CEO of Group 1 Automotive, the giant dealership group, who says new car sales only account for 20 to 25 percent of a dealer’s profits. Putting a dollar-figure on those percents is eye opening. A Honda Fit brings in about $414, a Ford Fiesta, just $255. Service, used-car sales and financing are where dealers make most of their money. It ain’t because they sell new cars.
Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options