Million luxury car price reduction car dealers huge losses or staggering profits?

In recent months, the voices of luxury car prices have risen one after another, price cuts of 200,000 yuan are not new, and discounts of 600,000 yuan are not uncommon... The luxury car price cuts, consumers can not help but doubt after getting benefits: a drop of several hundred thousand yuan Is the profit of luxury cars so high? Is the car dealer’s huge loss or staggering profits behind the price reduction?

Jaguar's up to 30% off discount "Jaguar XKR12 5.0L tiptronic V8 supercharged hardtop sports car maximum discount 638,000 yuan", recently, Shanghai Jaguar dealers launched a substantial promotional activities, this is a price cut Jaguar XKR, The original price was 2.038 million yuan, which is now equivalent to 30% off promotion. This is not a case. All luxury dealers in the country are conducting similar promotions.

At present, the model with the highest loss is the BMW 7 Series. Because of the large amount of inventory and the competitive price of competing brands, each model of the 7 Series will basically offer about 10%-11% discount. Among them, the discount of 760Li has reached 500,000 yuan, which is about 20% discount.

Mercedes-Benz S series can offer up to 350,000 yuan, entry-level S series models offer 200,000 or so. Among them, S500L4MATIC and S600L launched a discount of up to 350,000 yuan, about 40% off, and the rest of the S series models ranged from 200,000 to 260,000 yuan.

Millions of dollars in the price of luxury cars are often hundreds of thousands of dollars, Mercedes-Benz, BMW and other luxury car brands have followed suit, turn down prices, the luxury car market for a time. “The consumer of the car price has the final say... Now that there is no question of how much money is lost, as long as there is a customer entering the store and looking at the car, we have a principle, no matter how much the price will make the sale successful.” A car dealer told the author Bright bottom.

How high the profit of car sales is to reduce the price of luxury cars, which brings benefits to consumers and also brings a question: When car dealers drop hundreds of thousands, is the profit of the car so high? The author conducted a survey on this issue and found that the reason why the price of the vehicle has dropped so greatly is mainly due to several reasons.

On the one hand, businesses are forced to “sell” their products under financial pressure. There are a number of car dealers revealed that the current single store inventory is already about 2 times normal operation, reaching historical highs, while the luxury car's car prices frequently tens of millions, huge financial pressure forcing car dealers to cut the car regardless of cost price. “One side is the market's turmoil, while the other side is the manufacturers constantly press the warehouse.” Some car dealers describe the current luxury car market. The high sales of the company's full-year sales tasks made it difficult for auto makers to breathe.

In addition, car dealers admit that the current auto market downturn, and occasionally some manufacturers will launch a "promotional package" for some models, that is, a certain model in the month to complete certain sales vendors to give extra rewards. If a car dealer suddenly puts a price on a car for a period of time, this is probably the reason. “Some dealers may also make adjustments based on their own inventory. For example, this month, the manufacturer’s decision is to complete 30 sales of BMW 7 Series to give extra rewards. However, a store’s 7 Series inventory is not much, while the 5 Series inventory is relatively Gao, they will use the 7 Series subsidies for the 5 Series promotions...” An industry source said that this is also the reason why we often have different car prices in different 4S stores.

There is a big reason for the "end-of-year rebates." The average manufacturer's profit for dealers is 6%-8% for a vehicle rebate. By the end of the year, it will complete sales tasks for the year, and there may be an additional 1-2% rebate. . The profit for each car sold at the guide price is no more than a maximum of 10%. Therefore, car dealers are sometimes willing to change their prices, expecting to receive rebates at the end of the year to make up for the shortfall.