Quote:
Originally Posted by GREGL
Yep , there is good coin for them when they trade a good 2 - 5 year old car , warranty period so it should be straight into the yard after a detail . Give you next to nothing for it and wack a few thousand on it . Yeh yeh I know , the overheads for the coffee machine .
A lot of people mention how there is little margin in new cars and warranty period servicing these days doesn't really come to much . So where is the cream ?
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Yep, even when we were in the depths of depression in the 80's & early 90's, used car sales still made their profits. There's no fixed costs to their stock, so they pay less, sell for less, and still turn a profit.
(Obviously that is only contributing to the coffers of AHG or whoever owns the dealership, but in many country towns that would be the difference between having a New Car Franchise or not.)
(And that was only a minor part of my argument.)