How often does your Dealership do a Dealer Trade to sell a Car?

[DealerEx]

Originally Posted by XDCX

Chrysler used to have a program where Dealers could create a "pass-through" account and add an assessment to the Invoice. That's what possum was asking about in his post.

As I recall it showed up at the bottom of the Invoice and it was identified as a PPA charge - I might be wrong on the code, it was a long time ago.

Back to possum's question, I don't know the answer. Does Chrysler still have a program that allows dealers to create a "pass-through" account where the charges appear on the Invoice?

the PPA charge (personal preference advertising) is what I was referring to awhen I commented about some dealers choosing to have an add-on charge tacked on the invoice

[steve_biegler]

Didn't there used to be a program that you could add 50.00 for retirement?

[lsx only]

Originally Posted by ohiobuckeyes

Are a part of a GM IMR? Becasue if I recall its the GM Ad charge then the IMR charge right?

We have imr and lma
.

[chryslersrt8]

Originally Posted by steve_biegler

Didn't there used to be a program that you could add 50.00 for retirement?

There use to be a $50 fee that showed up on invoice that could be used for employee benefits. It came 60 days after invoicing, unlike the PPA that came to the dealership after 30 days. Usually was an $80 fee. Each ADI/ad group also based their ad fee ad on structure per territory. For example, metro would have 1 fee, outstate would have a fee. Midwest Business Center might have 1 ad rate and Great Lakes might have another. Based on Business Center Ad Board decisions and factory "recommendations". There was also a $50 fee for minority dealers to cover costs of ads specifically geared towards minorities. Problems occured when 2 dealers in side by side locations but under different guidelines use to have as much as a $200 invoice cost variance. Theoretically the money came back to the higher dealer but it affected day to day sales with salespeople and managers paid on gross.

Hope that clears things up.

[XDCX]

Originally Posted by DealerEx

the PPA charge (personal preference advertising) is what I was referring to awhen I commented about some dealers choosing to have an add-on charge tacked on the invoice

Originally Posted by steve_biegler

Didn't there used to be a program that you could add 50.00 for retirement?

Originally Posted by chryslersrt8

There use to be a $50 fee that showed up on invoice that could be used for employee benefits. It came 60 days after invoicing, unlike the PPA that came to the dealership after 30 days. Usually was an $80 fee. Each ADI/ad group also based their ad fee ad on structure per territory. For example, metro would have 1 fee, outstate would have a fee. Midwest Business Center might have 1 ad rate and Great Lakes might have another. Based on Business Center Ad Board decisions and factory "recommendations". There was also a $50 fee for minority dealers to cover costs of ads specifically geared towards minorities. Problems occured when 2 dealers in side by side locations but under different guidelines use to have as much as a $200 invoice cost variance. Theoretically the money came back to the higher dealer but it affected day to day sales with salespeople and managers paid on gross.

Hope that clears things up.

Great questions and comments.

I'm going to create a new thread in AREA 51 for our members to provide updates on Chrysler's current options for dealers as it relates to "pass-through" payments for advertising.

[DealerEx]

Originally Posted by chryslersrt8

Based on Business Center Ad Board decisions and factory "recommendations". .

Sounds like you've done your time on the Ad Board" also...I spent 11 years on it. For those that haven't, those factory "recommendations" are often in the form of demands, and sometimes accompanied with a big stick. That's where I first got crossways with one of the BC managers. The BC wanted a full 1% increase on assements, when we already had more money coming in than we could spend effectively. The board was split on it 6 to 5 against the increase (the 5 for it were afraid they'd get allocation cut if they bucked the BC). Every 6 months, at the prompting of the Zone Mgr., one of the "for" dealers would bring it up and call for a vote again. There was pressure applied, but we held out for over 2 years, until Auto Nation bought out a dealer that had 3 family run stores in the metro area, 2 of which had seats on the board that were "against". At the next meeting, the Zone Mgr. had a big smile and at the start of the meeting, he said he'd like to introduce a visitor...VP with Auto Nation, and explained that they were in process of buying out those 3 stores. He then turned to one of the brothers that ran the dealerships and said "JOHNDOE" don't you have something you'd like to bring up now...? The dealer stood with his eyes downcast and said "I think we should bring up the increase in assessment again at this time, and I call for an immediate vote." The increase passed 7 to 4 with those 2 votes changing, and as soon as the vote was ratified, both brothers stood up and the one who had called for the vote said "well, gentleman, I am very sorry, but as you can see, our personal convictions no longer have any bearing on how we will vote on board decisions, so at this time my brother and I will tender our resignations effective immediately...good bye and good luck"...and they walked out. Of course the BC quickly appointed 2 replacements that would play ball with them and from that point forward, any votes were simply a formality to approve whatever the factory wanted done.

[joekid]

sounds familiar

[XDCX]

Originally Posted by joekid

sounds familiar

joekid - That's your first post - Welcome to DealershipForum

[XDCX]

I thought of this thread when I read that 20% of all BMWs sold in the U.S. are dealer trades. The figure is even higher for California BMW dealers where 25% of all BMWs retailed are dealer trades. (10% were traded before the vehicle was shipped to the original Invoice Dealer and 15% were traded from in-stock inventory.)

On a side note, I read a story in Automotive News that BMW was testing a "pool system" where the OEM would store approximately 50 BMW 3 Series vehicles in San Diego that local dealers could use as in-stock inventory. It's not clear if BMW continued with the program or dropped it - I'll create a new thread in the BMW section and hopefully we'll learn the answer.

[ohiobuckeyes]

So when did we start doing dealer trades at Invoice-Holback+Delivery Allowance?

Had a dealer this afternoon want to do a dealer trade this way today. It seems the larger dealership are going this today. I understand that we get our Delivery Allowance back at NVDR. Are dealers in other manufactures doing trades this way as well, and in other parts of the country?

Dart SE Invoice $17684.00 - HB $510.00 + DA $160.00 = $17334.00 ($17,174.00)

[chryslersrt8]

That is news to me. I've never done a trade either inbound or outbound like that. I'm in a metro area and we go into Michigan, Ohio, Illinois, Indiana, and Iowa.

[XDCX]

Originally Posted by ohiobuckeyes

So when did we start doing dealer trades at Invoice-Holback+Delivery Allowance?

If I can ask, which dealer is selling the car retail - your store or the store that's asking for Delivery Allowance?

Additionally, is your store doing a dealer trade or is it just an outright purchase with no offsetting unit?

Maybe I'm a cynic, but if I had to guess my bet is your store has the retail customer and wants to do an outright purchase and the other dealer is looking for a slice of your profit.

[ohiobuckeyes]

It's our deal retail. This would of been a one way trade. But this is the second dealer that wanted to do a trade this way...

I tell you that I have done dealer trades with dealers all over Ohio, West Virigina, New York and Pa. It seems to been the PA dealers that want to trade this way.

[XDCX]

Originally Posted by ohiobuckeyes

It's our deal retail. This would of been a one way trade. But this is the second dealer that wanted to do a trade this way...

I tell you that I have done dealer trades with dealers all over Ohio, West Virigina, New York and Pa. It seems to been the PA dealers that want to trade this way.

Thanks for the information - that fits with what I was thinking.

I remember years ago listening to a Dealer "A" complain because Dealer "B" wanted half of Dealer "A's" gross profit on the deal before he'd agree to sell a 15 Passenger Ram Van to Dealer "A." Dealer "B" had the only inventory in the area and he was trying to use that to his advantage.

As I recall, Dealer "A" refused to do the deal and the customer waited for a factory order.

[conn02]

no more pass through. now the PPA is reimburse the ads they approve