Is the car business so profitable?

[PearlJam]

The info is from onemotoring.com.sg

Mercedes C180

OMV $35,306

COE $62,101

Total cost $144,003

Selling price $185,888

Gross profit $41,885

 

The OMV is supposedly the cost of the car at the factory gate.

The gross profit is therefore about 120%

So for every 5 cars they sell, they make 6 cars!

Of course there are overheads, advertising etc.

And there are also revenues from servicing and repairing.

 

We have no choice unless we go to PIs but the PIs are mostly unreliable.

So the ADs are rubbing their hands with glee.

 

Conclusion : car sales is one of the best business in terms of returns?

[NigelTan]

Well, PI's, they sell cheap meh? They also earn ALOT

[PearlJam]

Our authorities allowed Parallel Importers to come in and create some competition because the profit margin is so good.

However, the industry is such that most PIs have a short term outlook and are therefore not able to cash in.

[MarkCWQ]

http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/buy_a_new_vehicle/car_cost.MainPar.30963.File.tmp/Car_Cost_Update.pdf

[BabyA]

One of the Best Biz is Not Car Sales. It is the sale of COE, no overheads, unaffected by inflation, no manpower crush, no competition, no advertisement required, etc

Hahaha

[asiadj]

The info is from onemotoring.com.sg

Mercedes C180

OMV $35,306

COE $62,101

Total cost $144,003

Selling price $185,888

Gross profit $41,885

 

The OMV is supposedly the cost of the car at the factory gate.

The gross profit is therefore about 120%

So for every 5 cars they sell, they make 6 cars!

Of course there are overheads, advertising etc.

And there are also revenues from servicing and repairing.

 

We have no choice unless we go to PIs but the PIs are mostly unreliable.

So the ADs are rubbing their hands with glee.

 

Conclusion : car sales is one of the best business in terms of returns?

 

perhaps in singapore only.

[thaiedwin]

Bro you forget to add ARF..... And CEVS.

Oh yeah Singapore and malaysia has the highest margin.....

In US, I go agent can grab a car off the floor at 20k...,.

[jzk]

I strongly believe that PI like estate agents should be regulated. Otherwise they go around doing what they like.

Like over sell and under deliver!

[thaiedwin]

Wait , do note warrenty does not add in to the cost of car. (It's paid for by Mercedes Germany)

But do count in agent heavy overhead cost, your foc coffee, power, water , rental , test car cost ect.

Maybe after all the deduction might be only a few grand. But only the auditors and inside people know

[beserker_77]

imho, 20-30k profit for new car is more or less acceptable, considering the fact that u do get some freebies, free servicing, etc thrown in. From TS calculation its basis on pure profit without any stuff thrown in from dealer. If u own a car and wish to change to a merc, C n C do give a attractive over trade to lure you in and depending on your skill u get more sweetner out of your deal then others.

 

Volvo premium seems hell lot more the merc in my opinion.

[NigelTan]

I strongly believe that PI like estate agents should be regulated. Otherwise they go around doing what they like.

Like over sell and under deliver!

Exactly !! Somebody told me recently if Jover Chew can go to jail for so call phone 'scams'' how about the many buyers through the years

got 'scam'' by certain PI(s)??

And yes, Real Estate now has CEA

Personally I do think we should have one for motoring agents too !!!

[Arshavin]

Actually our government only acts when there are a strong presence of complaints and feedback from the consumers.

Unless the victims gather together and complain to their MP, the newspaper and the TV media, our government will assume the PI field is good and sound

Usually those PI have their ways and methods to make their victims shut up their mouths

[tyco_kia]

imho, 20-30k profit for new car is more or less acceptable, considering the fact that u do get some freebies, free servicing, etc thrown in. From TS calculation its basis on pure profit without any stuff thrown in from dealer. If u own a car and wish to change to a merc, C n C do give a attractive over trade to lure you in and depending on your skill u get more sweetner out of your deal then others.

 

Volvo premium seems hell lot more the merc in my opinion.

 

Don't believe in overtrade please. If anything, that raises your loan amount. Always negotiate for best price, you don't have to trade-in your car to C&C because their trade-in rates are crap. Always remember that the amount of overtrade they "promised" to you can be used to offset the car price. 

[Bttfiii]

Overheads like staff salary and premises come into play too