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Re: 10 K markup on an 18 K car (archive)

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Posted by Lokki on April 19, 1999 at 09:54:52:

In Reply to: I agree, in a way, but.... posted by Hmmmm... on April 18, 1999 at 19:55:48:


"...But if a 328i cost only $18,000 but $10,000 of that was dealer profit, there would be no takers. "
While your logic is compelling, have you seen what the Manufacturer's profit margin is on some of the
big SUV's? I admit that this isn't Dealer profit, which is your primary point, but there usually isn't 30 K worth of vehicle in a SUV and people line up to buy them (Note: See the Lincoln Navigator and the Cadillac Escalade). Rational behavior isn't ALWAYS the driving force in car selection... If it was, we'd all be driving Honda Civic's with DX trim levels.

Hope this doesn't come across as a flame... there are so many on this page lately. It's merely intended as a conversation starter



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