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      09-29-2012, 08:06 AM   #5
Jedi Poltergeist

Drives: 2011 BMW M3 6MT ZCP
Join Date: Mar 2012
Location: Southern California

iTrader: (0)

Originally Posted by mdosu View Post
for a pre-owned, they'll just lie to you, it's very opaque b/c they buy from different price points b/c each car is "unique" in a sense and has a story to it (trade in, lease return, auction). For new, they'll just give you their invoice price, and that's somewhat misleading b/c as I understand the business, dealers also get volume discounts and other incentives from manufacturers

You must be new to this business thing huh? Your price is based on supply and demand, not cost...
The formula to calculate COGS (Cost of Good Sold) is pretty simple and straightforward. The purpose of this exercise is to see the true profit margin, and to help me better identify a dealer which says that they are selling at a loss, when they really are not. I don't care about how the dealer came to their purchase price, as long as I find out what it cost them, in relation to what had cost me.