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Originally Posted by 67-ls1
Yes there is “profit” billed into each model but the corporate overhead is mind boggling.
In 2018 Ford sold 2,490,175 cars and had a PROFIT before taxes of $4.335 billion. That’s a little over $1700 per car profit BEFORE taxes. And that’s corporation wide so that’s parts too.
Note this does not include dealers who’s profits are not part of “Ford”.
If there was no such thing as auto financing who could afford $50k pickup trucks? Not many people.
Side note: Cummins purchased back all of their distributors in the USA and formed a new profit center called “Distribution”. They wanted those profits from their former distributors at the corporate level, not having all their distributors turning into multi-millionaires.
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What percent go with manufacturer financing (is that different than dealer)? Usually people are picking between 0% APR, or cash back from the manufacturer.
The Tesla direct to customer model will supersede the legacy model of independent dealerships. That middleman takes too much of the pie.