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Hellcat: invoice and markup

by David Zatz on

The Challenger Hellcat is a hot image car for Dodge, and the brand’s leader has already said he wants to get as many out to the public as possible, suggesting to dealers that they not tack on $10,000 (or higher) surcharges as they did to hot cars in the past — from Vipers to PT Cruisers. While his calls may be falling on deaf ears, the Challenger Hellcat seems to carry a decent profit for dealers as it is.

Stryker Red Challenger Hellcat #1

The base price of the car is $58,295 before the gas guzzler tax and destination (delivery-to-dealer) charges. Chrysler pays to fill the car with 8 gallons of fuel ($29) and covers $51 of the gas-guzzler tax so it shows up on the sticker as $1,700. That can be added to the $3,368 of profit on the car — not particularly generous for this price range, but also not bad for a car that will bring a lot of foot traffic, and is likely to generate a number of special-orders as opposed to being kept on the lot as a $60,000 pickup would be.

The automatic transmission has around $220 of dealer profit built in; the optional navigation adds $76.

There is also a $1,982 holdback, which is a profit given to the dealer quite aside from the difference between the invoice and sale price. This is designed to let dealers sell cars “at invoice” and still make a profit. Chrysler is generous enough, though, to employee-price this car at less than the invoice minus the holdback. Likewise, the “Friends and Family” program price is lower than the invoice by a decent margin.

Thus, on a base model car sold at retail, based on a customer order, a dealership can expect around $5,400 of profit — a hefty return even without tossing in a $10,000 to $20,000 “market adjustment.”

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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