AN-Which brands generate the best profits? (Dealers)

[mikeavelli]

Very interesting read, the first study of its kind. You can see Lexus/Toyota Dealership are very profitable (though note Lexus had a big drop this past year)

http://www.autonews.com/article/201...which-brands-generate-the-best-profitsProfits

 

[mmcartalk]

Interesting article if you are comparing by brand, but, traditionally, the highest profits going to the manufacturer itself (not the dealerships) has been on large full-size trucks and SUVs. Although it varies somewhat by specific vehicle and options, Ford and GM reportedly make between $7000 and $9000 on every F-150, Silverado, Tahoe/Suburban/Yukon/Escalade, Expedition/Navigator, etc... that they sell. There's probably no reason to assume that FCA doesn't make similar profits from the Ram.

 

[IS-SV]

Interesting article. Since the topic here is dealer profitability, I noticed the dealerships at bottom of list (with lower profit) are often providing unattractive/miserable customer experiences at their facilities.

 

[mmcartalk]

Interesting article. Since the topic here is dealer profitability, I noticed the dealerships at bottom of list (with lower profit) are often providing unattractive/miserable customer experiences at their facilities.

Kia and Hyundai dealerships can vary tremendously in their competence, and how they treat customers. A few of them in my area are clearly sub-standard, yet others can be excellent. The dealership, for example, where my brother bought both his Soul and Sportage treats him like a king......and the fact that the dealership is owned by the Congressman who represents that district sure doesn't hurt LOL. He has a reputation to keep.


BTW, Steve, what does CDJR on the list stand for? The only thing I can think of is Chrysler/Dodge/Jeep/Ram....but I've never seen it abbreviated that way before. Usually, that corporation is referred to as FCA (Fiat-Chrysler Automotive).

 

[IS-SV]

Kia and Hyundai dealerships can vary tremendously in their competence, and how they treat customers. A few of them in my area are clearly sub-standard, yet others can be excellent. The dealership, for example, where my brother bought both his Soul and Sportage treats him like a king......and the fact that the dealership is owned by the Congressman who represents that district sure doesn't hurt LOL. He has a reputation to keep.


BTW, Steve, what does CDJR on the list stand for? The only thing I can think of is Chrysler/Dodge/Jeep/Ram....but I've never seen it abbreviated that way before. Usually, that corporation is referred to as FCA (Fiat-Chrysler Automotive).

Like I said those at bottom of list are often unattractive and miserable. The exceptions are minority and rare here, probably the case nationwide too.

I'm also thinking CDJR along lines of what you just described... anybody else know?

 

[Brooks2IS]

CDJR refers to Chrysler, Dodge, Jeep and Ram. Dealers in my area commonly refer to themselves as CDJR dealers-- supposedly, locals do not think of Fiat in a favorable way and many customers don't even know Fiat is related to the Chrysler brands.

 

[mmcartalk]

many customers don't even know Fiat is related to the Chrysler brands.

Yes, it's amazing how much is spent on new vehicles by people who have little or no idea of what they are getting, or where it came from.

 

[CIF]

No surprises here. Was Mercedes not counted though?

 

[Tragic Bronson]

A lot of it is the relationship the dealer has with the manufacturer. I think in this arena, the majority of Lexus (and even Toyota) dealers are happy.