Dealer Margin
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nice1myson
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When are the dealers quarterly targets , and best time to get a deal on a bike cheers.
TwoTone
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30% used to be the dealer margin on Austin 7s and the like before the war, through the 60s 70s and 80s most dealers used to get about 17% more or less depending on if their were a main dealer or a sub dealer acting under a main dealer, this margin was reduced to 10% or less through the 90s and would vary from model to model within the range, today its impossible to know what a dealers margin is because it depends on scores they get on Consumer surveys, how much they've spent on their premises,hitting sales and finance penetration targets, on average the return on investment across the motor trade is between 1% and 2%.
cheesestraw19
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I got 15.4% off list on a BMW 440i GC last month. That doesn't include £4500 deposit contribution too.
If this is true and I don't dispute your knowledge.........Then at the current rate of inflation they are running at a loss....Doesn't quite figure
Most dealers, especially BMW have gone to monthly targets, which can be caught up on at end of a quarter.
I just got 12.5% on a Mini Convertible, just £500 PCP contribution, but generous px figures & emission allowance too
You can get 22% off a m140i and around 20% off the m240i (as I did), but my understanding is that the margins on bikes, including BMW bikes is more like 8%? Seems difficult to get an insight on margins for bikes, unlike cars.
Seems more likely than running at a loss.
spoken with a few dealers over the years, never discovered what their margin is but they have all consistantly said that its the service department and used machines that make them the money. they all claimed that new bikes didnt really make them anything.
i think you will find bmw dealers exist to sell new bikes,thats where the main focus will be
BigRedUn
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I last worked in car dealers in the late nineties, so things could well have changed, but back then the saying was: parts and service pay the fixed costs and sales provide the profit.
As said above sales margins were heavily dependent on meeting targets for vehicles sold and customer satisfaction replies.
As said above sales margins were heavily dependent on meeting targets for vehicles sold and customer satisfaction replies.
Given that pre-reg bikes are common all over the industry but we’re almost unheard of at BMW until the last couple of years or so, something must have changed - I’m guessing more generous rewards for targets. I’ve spoken to three different dealers in the last couple of months and all have said that they’ve struggled this year with new bikes (particularly the R Nine T), but we’re doing OK on used bikes. I would imagine that they don’t make much on new bikes but get commission on finance deals and healthy bonuses/discounts on meeting monthly sales targets.
I doubt the bike side have anywhere near the profit margin the car sales side has
Hairyweasel
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I don't know about bike or car sales but my Mrs worked for a van and truck sales place.
They made 5% on a good day and as the target dates got closer they would sell below cost if the numbers needed to be up.
If they hit their sales targets the kick back from the manufacturer paid 100% of the running costs of the company.
The cream on top was parts and servicing.
They made 5% on a good day and as the target dates got closer they would sell below cost if the numbers needed to be up.
If they hit their sales targets the kick back from the manufacturer paid 100% of the running costs of the company.
The cream on top was parts and servicing.
In the main BMW dealers will not make any more than 5% on a new bike. But before you may start to feel sorry for them - don’t ! In addition they make good money if a bike is sold on finance, bonuses from BMW by hitting targets, profit on any trade in. Also the profit in used bike sales is often higher.
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