ethanrob

iTrader: (3)

I was talking to an ex subaru dealer employee a few weeks back about the 06 sti model,he told me something that shocked me stupid

That international motors pay around £12500 for an sti and around £9800 for the wrx model,direct from fugitsu HI

so retail price for the sti is £25995 ish,and the dealers swear blind they make very little on new cars,so IM must be making a fortune

surely this cannot be true can it !

how much money does this company make from each car

please someone tell me this is not true,and can i buy a car direct as well

Stuart Page

iTrader: (4)

Can't be true, they sell for loads more in Japan where there's no shipping etc.
Might cost them that in parts + factory assy costs, but doesn't take into account the indirect costs such as sales/marketing, design, development, tooling etc. All has to be added up!
Actual cost probably nearer the 21k mark for an STi, so the internet sales peeps really have small margins to work with.

Bug Eyed Peas

Doesn`t shock me in the least TBH. Profit margins on cars and electrical products are very exaggerated. They are making a mint out of us. And we, the average joe, keep on paying it.
How would the government fair if everybody stopped smoking???
Firked, enough said.
Anthony

jimbob6242

Hi Guys,

Want some info? those figures are so far out it's unture. I sell Land Rovers and this if your intrested is how it works

Front end money

Typically 5-8% depending on the manufacutuer and model - This is the dealers true profit and what they have to play with

Back End money / re-earns

Typically another 5% this is paid to dealers after the vehicle has been sold. Not an exact science as often it is performance orientated. i.e to get the full 5% you have to hit all manufacuter objectives, not just in terms of units, but also silly things like the right demo's, mystrey shop scores, showroom conditions etc etc

Anything in addition to this will be lead by the manufactuer - such as the 3,000 fuel offer on subaru i would imagne the dealers have to contribute out of their margin but Subaru will foot most of the bill.

So in essence margins are tight, you go to your local dealer and get £2,500 off a Sti, doesn't leave much does it.

Just so you don't feel too sorry for the dealers (as if) most of the sales true profit is made from finance and things like Gap insurance / Supaguard. We are lucky because every time we blow 3.5K out of a freelander, we make it back on profitable models such as the Range Rover Sport. Unfortunatly I don't think subaru have a "sport" so it must be quite tough for them. Ever wonder why parts and servicing are so expensive?

Jim

andythejock01wrx

Yep, they must make good money on servicing at £55/hour. Then again, there are the courtesy cars, shiny showroom, friendly high paid staff (lol !).

scooby2!

well guys, as an ex IM employee, the figures look about right, dont forget they enhance standard warranties, give dealer training, advertise etc,etc,BUT Mr.Bob Edmiston who soley owns the IM group is not one of the wealthiest men in this country by pure chance, this should be no slurr on him, very nice man who looks after his staff and dealers, a very clever man, and above all a christian, take a look on the net!!

Stuart Page

iTrader: (4)

A someone in the industry as well, they must be using the cheapest sourced parts to get down to figures like that, certainly not a price we could compete with.

d5hof

theres also tax issues...it all adds up

teajunkie

I bought a new 02 plate renault clio (full accessories) through work discount scheme back in 2002 and it cost me £7000 and retail price was £11'000.
Our current discounts are at 35%(ish) for a scenic.
Kept it for two years traded it in for my scobby and local scooby dealer gave me £7000 for it trade in! (no loss )

But hey who likes renaults anyway!
So the 5-8% markup is a myth as far i can see.

bugsti

I dont think dealer margins are very high for Subaru.

Anyway, they have to make a living like the rest of us.

daz-c

Just bought a Navara Aventura for my works vehicle, I have a brother in law who works at Nissan Sunderland. I handed over a employees discount number and the dealer instantly knocked off £5840 from list price. Surely the dealer has still made profit on the deal as he’s in it to make money, and Nissan will still be making there bit. So how come Nissan can reduce the price of the van just like that?
All car manufactures will tell you margins are tight to maximise profit. This could be a job for rogue traders me thinks

stilover

Considering America pays sometimes half what we pay for the same car in the UK, I can believe it.

Generic User

There has to be some truth in it. The figures maybe wrong, but it can't be too far away from the mark and can easily explain why an EU car (same spec) costs £15000 at the likes of motorpoint....

And that's AFTER the exporting dealer has taken their cut, the cost of transportation, along with Motorpoint's own profit, dealer's commission and finally fitment of various alarm/immobilser/tracker gubbins. So at £15K a WRX is VERY profitable....well, enough to warrant all the fuss of importing it, retrofitting and registering it.

Bear in mind a UK spec car is retrofitted with the UK bits after manufacture, as it starts life on the production line as a EU spec car. So "should" cost more or less the same as the EU version.

stilover

Manufacturers don't sell cars for a litte profit. They sell them for what they think each country will pay for it.

Were not Labled `Rip off Britain` for nothing

wrxseeker

iTrader: (1)

Thats a spot on analysis of the situation

Generic User

Don't suppose I could be so bold to ask, but would you know if it was IM who took the costs over Isuzu Trooper 3.0doch diesel injector retrofits and recalls? Or did they just pass the costs over to Isuzu?

Maybe the high Impreza Prices are to cover the shortfall from the troublesome Troopers.

EVOLUTION

who foots the bills for all the emgine failiures lol


IM possibly, i reckon in labour costs and parts, IM will definatly have lost a large amount of money on my car so far, and the story aint finished yet either lol

PaulC72

You also have to bear in mind some of the money allocated to the cost of the cars is attained to a contingency fund which covers warrenty work, recalls etc etc I imagine they have a pot of money sitting there gaining interest which they cannot call profit or loss, from my understanding the dealers usually get up to 8% profit plus the bonuese that were mentioned earlier, you also have to remember the 8% is profit so they probably make 10 - 15% in all but the rest covers overheads that are not covered in general things like sevicing, the salespeople are / would be a direct overhead.

Chris L

Going back about 10 years or so, I used to work for a bank. I remember seeing billing invoices for Mazda UK. They were importing the (mk 1) MX-5 for around £6K per unit. Retail price at the time would have probably been around £12K.

EVOLUTION

then there will be the duty on the cars though.


like importing a car personally, the duty has to be paid on the UK shore price therefore this figure wont be shown on that invoice i wouldnt have thought

Sweepickit

Having worked at both Vauxhall and Mitsubishi main dealerships the 5-8% is very accurate indeed. Your work discount scheme is a deal between the manufacturer and your employer. For doing the deal the dealership gets a 'handling fee', but makes no real profit as such. Any deals that show a better saving than 5-8% are most definately subsidised by the manufacturer. (Mitsubishi were very keen on giving subsidies...or customer savings as they were called!)

555Rob555

It can't be that far out. I bought a brand new 05 WRX for £15000 tax free. At the time the list price was in the region of £20000.

5 grand profit for a new car doesn't seem huge to me when you factor all the dealer overheads.

scooby2!

In general a recall would be covered by the manufacturer, but I would not like to say or guess in this case, I know the prices of landed cars may cause some concern, but we have to realise that IM are placing orders in the 10's of thousands units, if any of us bought expensive products in these quantities you would want a ruddy good price, and as long as we are buying, they will be supplying.
I had the choice of Lining big Bob's pockets or buying a Cypriot import, and I voted with my wallet, and my new Cypriot import is fantastic, that is all it takes, for us to do this and prices will drop.It is no good complaining if we carry on supporting the uk car trend, I hasten to add that I do not wish the IM group any harm, good luck to them.

ZEN Performance

What he is saying is that IM make the difference between the alledged IM cost price and the dealer cost price. Dealer makes say 8%, IM make nearer 40% on each car, of course that will be offset against overheads etc.

Dealers get a raw deal while IM get's rich.

scooby2!

No defence for IM, they are obviously doing very well, please look into them on the net, but we all have choices in life, and the dealer is always going to say no profit, but if they make so little, how do they afford the nice showrooms, well paid salesmen etc, and you have to realise alot of their dealers are very well established, and have been in the business for many years, strange thing to do for a job that makes only a little profit.
How much do you pay an hour for servicing, bearing in mind top technicians are probably on £12 ish per hour, and I bet most hit bonus so the dealer earns more.
Come on if IM are doing so well, why dont you all get off your *****, get over to Japan, place an order for millions of pounds worth of niche products, with a 40% mark up surely the bank would be sympathetic.
never been on here till this week, great aint it, although you will prob ban me by next week.

The Rig

iTrader: (13)

Its like all prodcts tho, its all cheap to make,well, cheap compared to final price we see,for instance, i bought a set of front/rear pads from unipart, rrp was £64 and £55, their price was £26 and £21 then their buy in price was £8.50 and £7.40, as i got them for this price !!