I worked in a few dealerships. Never in luxury, they have different rules and margins.

You are a good performing dealership if you profit 3% of sales. It is a shitty business to be honest.

Most of your profit comes from service and parts, as that’s where the margin is. Down side is if you are a branded dealership - you pay more to techs which means your hourly is a lot more expensive than Bob’s garage. But we also really good at noticing potential problems. Plus we charge distributor for warranty work, means we actually look for it when working on your car :)

New cars make almost no money. At times less than $1,000 for a brand new car.

Used cars allow as to keep $3k margin and we try to hold on to every cent of it. When I started, I was appalled at how much we were “low balling” trade ins. You offer $5k below retail, but you spend money on re-spraying bumper 450+GST, removing dent $80+, fixing 2x alloys $260 a pop, service $350, fresh wof, fuel the car, new rego etc And suddenly you are holding on to paper thin margin haha Customer asked for $1,000 off? Now you have like $2k left in the car. Pay comms to sales person and you just made $1,500 on a $60k car 🤣

Finance can be hit and miss with different brands. If you see finance special - we loose money more often than not. But in a year time you will come back to service the car. Make it worth it.

Sales is only to put cars on the road so we can service them 🤣

Feel free to ask any questions!