Is there much money left in this industry anymore! New Zealand seems to have so many for such a relatively small population .
amberjandal,
Jun 6, 6:21am
Since the start of the recesion in 2008 over 2300 dealers have shut their doors. 3 reasons , a slow used car market , supply of vehicles getting tight and the increase of private to private buyer business due to internet. Even new car dealers are feeling the pinch with a number shutting down or changing hands during this time.
kazbanz,
Jun 6, 7:00am
In the "old days" gone by it was industry legend that used dealers made $4-$6000 profit on every car they purchased simply because the new car market had had a monopoly for so long. Nowadays a more normal(after gst) profit per car is $1000 or less. From thata dealer has to pay all the overheads for the company-ie rent /power/paye/phone/advertising.-
tgray,
Jun 6, 7:13am
And without commercial premises, some dealers work on as little as $500 gross margins. That's less than $300 nett, after advertising, ownership changes and tax. I'm not kidding!
amberjandal,
Jun 6, 12:30pm
Yep - different ball game today , in the old days if a car had a problem it could often be fixed for $500 , today .heaps of cars can bite real bad with the electronics and sophisticated transmissions. Warranty claims get up to $4k
kazbanz,
Jun 6, 12:38pm
If you get caught with a decent claim on a modern euro $4k is just start money. That said I'd hate to be the sparky that tries to fix the cambus electrics in a BT50, Hmm wonder what'll happen the first time a towbar is wired up wrong
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