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Originally Posted by Scott S
...he sales for is owed over a million has yet to be paid for any. He also tells us there are several dealerships in Portland that were so close to the margin if the government doesn't pay up in the next several weeks they will be forced to close.Scott S
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I own equity in a private franchised auto dealership. The average gross sales profit on a new car transaction, including financing, is about $1200. If after all costs are washed out, if the Fed owed the dealer $4500 on a C4C transaction, that means the dealership needs $3300 of the $4500 to be IN THE BANK just to break even on that deal. Again, neither the Obama administration, nor any of the people claiming that this is "bailing out the auto industry" really know what they are talking about. It might be driving more Corollas sales, but if the remaining dealers go broke executing on it, how is that good for business? Is that "creating jobs?"