Quote:
Originally Posted by thegump
Way off, it's obviously cheaper to make than msrp but it's not as cheap as you may think. Most manufacturer margins on mass produced vehicles hover around 15-20%. Car's like M3's will have higher profits but I couldn't see it being much more than 20%.
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GP or EBITDA?
I think many of you are vastly overestimating the actual profit per unit that an OEM generates on a vehicle sale. It isn't that hard to calculate and most of the financial statements are public knowledge.
For the OP - yes, BMW and other OEMs subsidize the residual to increase the benefit of leasing the car.
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BMW AG Financial Results for 2018 (In Euro's) (Inc. BMW Motorcycles)
Gross Profit per unit: $5,364
Gross Margin: 18.52%
Net Income per unit sold: $1,035
Net Profit percentage per unit sold: 3.57%