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Is a car high-margin (as in profit)? I wouldn’t think they would be. Or perhaps you were using the term in the sense of a high dollar price point.
by runlaszlorun 3y ago
Is a car high-margin (as in profit)? I wouldn’t think they would be. Or perhaps you were using the term in the sense of a high dollar price point.
- lotsofpulp 3y agoWhatever the profit margin of an individual car is, the car manufacturing business is not a high profit margin business. GM/Toyota/Honda/Ford show 5%, to maybe 10% profit margins. They would definitely benefit from convincing people to pay for 50%+ profit margin software as a service subscriptions.
- dionidium 3y agoNo, not really. Manufacturers make about 5%. Dealers make about 1-2%. People assume the margins are much higher because it's an expensive product, so there's a big gap between perception and reality. See: https://cardealermagazine.co.uk/publish/how-much-profit-do-car-manufacturers-make-on-new-cars-the-truth-versus-perception/234641 https://cardealermagazine.co.uk/publish/how-much-profit-do-c...