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TedH

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Posts posted by TedH

    Markup In The Automobile Business

    in General Discussion

    Posted

    I'm a writer working out of the Milwaukee area.  Forum members have helped me many times over the years, mainly with identifying automobiles and trucks in photographs, sometimes when only a quarter panel is visible.  About two years ago, I asked for input on a story focused on what I termed "markup in the automobile business."  There were many helpful responses; ultimately, I was greatly aided by an industry insider.  First draft of the story is here:  Markup In The Automobile Business.  Please have a look and let me know your thoughts.  (Some of you will see your earlier comments.)  Goal is to make corrections and received additional input. Many thanks, Ted 

    More "Markup In The Automobile Business"

    in General Discussion

    Posted · Edited by TedH
    Math error. (see edit history)

    Thanks again to all who replied to my post, “Markup In The Automobile Business.”  I compiled the comments and applied the various percentages-off MSRP mentioned to TrueCar’s 2017 CRV pricing (attached).  TrueCar’s MSRP is $28,895 and the factory invoice is $27,444, which is about 5% below MSRP.  No forum member mentioned a typical markup that low.  The lowest was 8%; the highest was 33% off a “slow-selling car with 500 miles” which the 2017 CRV isn’t but just for comparison, this would result in it selling for $19,360, a loss of $8,084 to the dealer if TrueCar’s $27,444 factory invoice is correct. Naturally, “holdbacks,” “volume discounts,” etc. might have an impact, but they are among the factors that motivate this in a 2013 Edmund’s story (https://www.edmunds.com/car-buying/dealer-holdback/):  “However, determining the dealer's actual net cost is difficult, even for seasoned automotive insiders.”  The “even for seasoned automotive insiders” is telling.  Some members have commented that my story is “old news” or well-covered.  I’d appreciate any book or magazine article titles or website URLs that members are aware of that plainly lay out markup in the automobile business—I’d like to review them. 

     

    2017.CRV.National.Sales.jpg

    Markup In The Automobile Business

    in General Discussion

    Posted

    Thanks for the insightful comments. I invite forum members, who have a little time, to review the attached national sales prices for a Honda CR-V according to TrueCar.  The “market average” is about a grand above factory invoice, some sales appear to be higher than the MSRP, and some below factory invoice.  Maybe I’m not interpreting this correctly; otherwise, why would a vehicle that sometimes commands more than the MSRP be sold for less than its dealer cost on other occasions?  (Note: I condensed the information on the TrueCar sheet using Photoshop Elements.)

    2017.CRV.National.Sales.jpg

    Markup In The Automobile Business

    in General Discussion

    Posted

    Hello from America's Dairyland.  I'm exploring writing a story about how the automobile business operates.  No, I don't believe dealers pay anything near what is listed on the "dealer invoice"; second, I've never seen a convincing story with information from insiders on how the business truly works; third, I'm not looking to make things harder for anyone.  Goal is truth.  I've had some experience in retail, and the typical markup is 100%—buy for $10, sell for $20.  Sometimes, rather confusingly, this is referred to as a 50% markup, meaning 50% of the selling price is markup.  My goal is to find individuals with long, industry experience, interview them, and write a report.   Please send an e-mail to deneb77@icloud.com if you're interested in helping and wish to remain anonymous or have opinions or ideas and wish to remain anonymous.  

    Need Help Identifying Ashtray

    in General Discussion

    Posted

    Hello from America's Dairyland. My wife's grandfather ran a salvage yard and used car lot in Iron Mountain, Michigan.  He saved some parts and displayed them at a cabin in Wisconsin, including the ashtray in the images.  The characters just visible in the second image are "M" and "1A1517S." Anyone know what model and year vehicle this is from?  Members of the forum have helped me before and I'm appreciative. Thanks, Ted

    Ashtray.1.jpg

    Ashtray.2.jpg

    Writer Needs Help Identifying Car

    in General Discussion

    Posted · Edited by TedH (see edit history)

    post-147514-0-61664400-1454594025_thumb.Please see the attached.  This car was parked in the front of a movie theater with a message on the marquee to "Buy Your War Bonds Here" and two listed attractions, from 1935 and 1938.  Research indicates the term "War Bonds" was only used after the Pearl Harbor attack so the time is no earlier than mid- to late-December 1941.  I'm using the image in a story I'm writing and want to let readers know the make, model, and year of the car.  AACA members have helped me before.  Thanks.  

     

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