Date registered: Dec 2002
Vehicle: 92 500SEL to 01 E320T current 2014 lexus LS460
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
If I were to do a guestimate, a $50,000 car would have about $10,000 in material and labor. You have to remember R&D, overhead like non production salaries, facilities (factories-offices), not to mention management salaries, racing efforts, sponsorships, benefits like (retirement-govement social securtiy or what ever is assessed). The other items like stock dividends, bank note repayments, warranty costs, advertising and profit.
I use this as a comparison on my experience in manufacturing, sales, on the products that we sold thru dealerships 20% final profit might be on the high side but not uncommon.
The pricing to dealers is covoluted, there are things like financing, dealers do not toally pay for a car when it hits the lotits more like a constantly changing note, the numbers move around, as new models are introduced the factory starts adjusting, why would any dealer acquire cars within 90 days of a model change, the word "hold back comes in".
Last edited by Peter Guenther; 08-01-2006 at 01:34 PM.