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Old 03-27-2008, 09:59 AM   #1
XDCX
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Join Date: Nov 2007
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Default Used Car Gross Average versus New Car?

It's no secret that the Gross Average on a Used Car is much better than the Gross Average on a New Car. The question is, how big is the difference?

A GM/Chrysler Dealer featured in a recent article in Fortune Magazine reported that is Used Car Gross Average is SEVEN times higher than his New Car performance. He further stated that the neighboring Toyota dealer had New Car Gross Averages that were four times higher his. (His New Car Gross Average must be $300 - $400 for the numbers to make sense.)

Is this the future of automotive retailing in the U.S.? How low can grosses on New Cars go before it just doesn't make financial sense to be in the business any longer?

Here's a link to the Fortune Magazine article: http://money.cnn.com/2008/03/25/news...ion=2008032610
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