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Natwest



Member Since: 06 Oct 2008
Location: North Cotswolds
Posts: 576

United Kingdom 

It's taken me long enough to get one! (FL2, nevermind a Metropolis) Whistle

Post #239229 28th Oct 2014 12:09 am
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athelstan



Member Since: 03 Nov 2009
Location: Reality
Posts: 2658

Re New Vehicle Profit Margins
Per unit it is the country distributor that makes the largest percentage profit margin per vehicle, followed by the official dealership. The manufacturer makes the least percentage profit per unit sale.

However, when looking at the business model from another perspective - volume. It is on an annual turnover basis that the manufacturer reaps the biggest fiscal reward, followed by the national distributor and finally the official dealer.

When a manufacturer combines the role of both producer and national distributor they are really optimising their revenue opportunities.

This is the business model that all motor manufacturers follow. The more efficient and effective the manufacturer becomes the greater the reward for all parties in the supply chain. Alternatively, the go bust a.k.a Rover or enjoy massive state intervention currently PSG, and Kia.
(Data source:SMMT & Red Consulting)

Post #239241 28th Oct 2014 8:28 am
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dorsetfreelander



Member Since: 20 Jul 2013
Location: Dorset
Posts: 4353

United Kingdom 2014 Freelander 2 SD4 XS Auto Loire Blue

From an article in yesterday's Financial Times on the demise of traditional car dealerships.

The number of dealerships run by the top 20 brands in the UK has fallen by almost a fifth since 2001 – a drop that has been masked by the success of Asian operators such as Hyundai who are now selling cars at shopping centres.

The decline is more pronounced among the volume carmakers such as Ford, Vauxhall and Volkswagen, who are down by a quarter, according to data from ICDP, an automotive research company.

The data group says its “pragmatic” estimate is that a third of dealerships in western Europe – the equivalent of 14,000 outlets – will close by the end of the decade.

Dealer operating margins on new car sales are thin – typically less than 1 per cent of the price of the vehicle – (I presume that's after cost of overheads removed) used cars and service and repair operations are much more profitable.

“If you go to a typical dealership, a very small physical footprint is thrown over to new cars,” he says. “The bulk of the forecourt will be full of used cars.”

Post #239280 28th Oct 2014 2:03 pm
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Natwest



Member Since: 06 Oct 2008
Location: North Cotswolds
Posts: 576

United Kingdom 

Car has now been PDI'd and I'm due to collect on 14th. Built on 30th September so is one of the last ones Thumbs Up Now:
17MY Discovery D5 2.0 HSE (Carpathian):

Gone::
(04/17): 16.5MY Discovery Sport HSE (Waitomo)
(08/16): 16MY Discovery Sport HSE Lux Auto (Corris Grey + Black pack)
(11/15): 15MY Freelander 2 Metropolis SD4 (Loire blue)

Post #240280 6th Nov 2014 1:55 pm
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