MB Dealer Holdback / Profit / Invoice $$$
<SPAN style="FONT-SIZE: 8.5pt; FONT-FAMILY: Verdana">F.Y.I.</SPAN></P>
<SPAN style="FONT-SIZE: 8.5pt; FONT-FAMILY: Verdana">On MB cars the dealer has "holdback" of 3% of "Total MSRP" (i.e. 3% of sticker price minus destination).For example,a bare bone E320 without any options (which is VERY rare)dealer makes at least $1,700+ profit by selling it at his invoice price. And makes about $3,300+ by selling it at MSRP (sticker price).
</SPAN><SPAN style="FONT-SIZE: 8.5pt; FONT-FAMILY: Verdana"></SPAN></P>
<SPAN style="FONT-SIZE: 8.5pt; FONT-FAMILY: Verdana">To calculatedealer's invoice price for a new MB:
</SPAN><SPAN style="FONT-SIZE: 8.5pt; FONT-FAMILY: Verdana">take a sticker (MSRP) price, subtract destination charge ($720 for E320), then subtract 3% (i.e. multiply by 0.97), then add destination charge back.</SPAN></P>
<SPAN style="FONT-SIZE: 8.5pt; FONT-FAMILY: Verdana">For example for bare bone E320 without any options MSRP = $48795
(48795 - 720)*0.97 + 720 = $47352.75 (this is actual dealer invoice).<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com
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></SPAN></P><P class=Msonormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman" size=3>Any comments? <IMG src=smileys/smiley2.gif border="0"></FONT></P>
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I believe that you need to re-do your math! You should take the dealer (MSRP-Freight) times .97 + the freight calculate the dealer cost after deducting the holdback. THere is also an advertising fee from the factory to add back and a floor plan allowance to subtract, to get to a dealer low net cost!</P>
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Bob</P>
Originally Posted by scubadvr2001
I believe that you need to re-do your math! You should take the dealer (MSRP-Freight) times .97 + the freight calculate the dealer cost after deducting the holdback. THere is also an advertising fee from the factory to add back and a floor plan allowance to subtract, to get to a dealer low net cost!</P>
Sorry, 3% off total; MSRP - my mistake.</P>
RE: advertising fee - most of the times you can easily negotiate 50% of the amount the dealer tries to put on the order sheet.</P>
About 25% of the orders you can get away without paying advertising fee.</P>
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