[Martinjlm]

Originally Posted by Ethanolic

ATP is also a little misleading in determining profit as what a buyer pays does not directly benefit the Corporation. If dealers won’t move far off msrp for Camaros while ford dealers are willing to sell mustangs at close to invoice that has zero impact on the profit to the company. Also the fact that Camaros can’t be had in inexpensive lower content versions keeps their ATP higher but that extra content is not free to the company either... they cost more to build.

We are never going to know if these cars are profitable...until they stop making them.

We should all hope that doesn’t happen.

For the most part this is correct, but sometimes Corporations provide dealers with incentives that the consumer most often does not know about that allows the dealer more room to move on the MSRP. Those would lower the ATP and also impact profitability, since the dealer would be paying the Corporation less for the car sold at a discount.

Corporations also occasionally supplement the finance and lease deals, provided the dealers use Corporate financial arms. So,for example, a 0% finance rate would be supplemented by the Corporation and would not affect ATP but it would lower profit margin for the Corporation in that it is an added cost.