take a $50k car. lets use the Toyota 4runner. how much...

[vash]

....do you think it would cost to build that EXACT vehicle up from parts from the Toyota Parts Department? every nut, bolt, relay, etc.

for argument's sake. lets neglect LABOR, and say..paint. parts. only?

i honestly dont even have a wild ass guess. over a $400k? i just bought a relay from them for $90. i was desperate since my NAPA was out of stock and the relay controlled my AC compressor clutch.

more?

[widebody911]

I've seen this exercise played out before, can't remember who did it or which car

[beran earms]

I have seen this too, on a 928. I think it was over a million.

[Jeff Higgins]

Yeah, this has been a somewhat infrequent exercise that a few of the car mags have undertaken. I don't remember any numbers either, but it's always been in the millions. Markup on individual parts is extraordinary.

[sammyg2]

How much would it cost to build a house if you bought every single piece at home depot?
Lots more than most of us could ever afford.
Economy of scale, wholesale vs retail, bulk packaging and handing vs individual parts, negotiated contracts, warehousing, the costs all add up.
That's why companies can sell cars for the price they do.

[GH85Carrera]

And why they build a bunch of vehicles on a assembly line. Same thing for many neighborhoods, a builder just builds house after house right next to the next with crews going next door after a house is finished.

The parts to build a vehicle is not individually boxed, and labeled and put on a shelf and shipped to a warehouse then a parts store.

[911 Rod]

I'd also like to see what it actually costs them to build it in the factory. Not including R and D, marketing etc.

[MBAtarga]

I recall it being done at some time as well - seems it was about 8x or so using the parts costs. Of course, a Porsche would be more like 100x.

[Jims5543]

Originally Posted by GH85Carrera

And why they build a bunch of vehicles on a assembly line. Same thing for many neighborhoods, a builder just builds house after house right next to the next with crews going next door after a house is finished.

The parts to build a vehicle is not individually boxed, and labeled and put on a shelf and shipped to a warehouse then a parts store.

A builder I have been working for since 2000 just started in some subdivisions like you are describing.

They asked me if there would be a price break for them since the houses are all in the same place. I asked if they were discounting the houses for the same reason.

They agreed my prices were fine.

[vash]

Originally Posted by Jeff Higgins

Yeah, this has been a somewhat infrequent exercise that a few of the car mags have undertaken. I don't remember any numbers either, but it's always been in the millions. Markup on individual parts is extraordinary.

millions?!! wow.

so it's like buying a $10 razor. the replacement blades are where they get ya!

[aschen]

always wondered if you could make a business case for dismantling a new car. A bit of a logistics nightmare of course and there would be a huge buildup of infrequently replaced parts, but it is an interesting thought experiment.

There are companies that do it for remote control kits and I think the numbers work. High demand parts are discounted a bit from retail while low demand parts are pennies on the dollar.

[Seahawk]

Economies of scale and efficiencies in full rate production manufacturing of an end item are different than spare parts costs for that end item.

Infrastructure costs, production learning curves, "middle man" costs (FLAPS gets a cut, as does the dealer on spares) shipping costs to numerous locals, storage, handling, etc. drive the cost of every repair and part post initial manufacture.

I loved working in manufacturing.

[wdfifteen]

Originally Posted by vash

millions?!! wow.

so it's like buying a $10 razor. the replacement blades are where they get ya!

The dealer I bought my Kubota from would only negotiate a tiny amount on price. He said Kubota MSRP is so low he has to plan on making his money on filters and fluids. I did think much about that until I needed an air filter. $35!! A gallon of hydraulic fluid is $27.

[dad911]

Originally Posted by wdfifteen

The dealer I bought my Kubota from would only negotiate a tiny amount on price. He said Kubota MSRP is so low he has to plan on making his money on filters and fluids. I did think much about that until I needed an air filter. $35!! A gallon of hydraulic fluid is $27.

I've been through that exercise. Filters and parts much cheaper online. Sometimes cheaper from the local dealer's online store.

[Bob Kontak]

Originally Posted by 911 Rod

I'd also like to see what it actually costs them to build it in the factory. Not including R and D, marketing etc.

I remember reading in the early 2000's the basic F150/Silverado build cost was under $10k. $8.5k sticks in my mind.

So guessing around half of sticker. As you upscale the margin on bling is huge so build cost is probably under half.

However, that's a truck which they make a squillion of.

[Seahawk]

Originally Posted by dad911

I've been through that exercise. Filters and parts much cheaper online. Sometimes cheaper from the local dealer's online store.

I bought a diesel Kubota zero turn, 72' inch deck commercial grade mower three months ago. I can source consumables. It rivals any machine I have every bought for capability, human factors thoughtfulness and design execution.

It is that good.

My tractors, however, MF's, are impossible to shop for. I just got back from the local MF dealer. I'd like to be his tailor (WZ reference).

[Arizona_928]

It's Mark up. Example. I needed a fuel hose clip on my 6.7 ram. A 50 cent clip. (Cat filler galled) Problem is you can't just buy the clip at the dealership. You have to buy the whole fuel hose. Fine .. 32$ and i found the part number from the mopar website. Ordered it online from a Phoenix wholesale mopar dealers website. 21$ shipped next day from long Beach.


Moral of the story. Never buy at mark up prices. Always say wholesale or online orders.

[sammyg2]

'Bout 20 years ago I read an article that quoted a big boss at GM saying that if they couldn't build the chevy small block engine for under $100, they'd go out of business.

Least that's how I remember it, I've slept since then.

But chebbys have always been more reasonable for parts from the stealer.
Around 2001 I bought a water pump for a chebby silverado.
I had a choice: re-manufactured for $22, or brand spanking new for $26.
I bit the bullet and went for new, sometimes ya just gotta say what the heck.

[sammyg2]

GM Builds 100-Millionth Small-Block Engine
Milestone LS9 assembly at Performance Build Center comes 56 years after introduction
2011-11-29

https://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2011/Nov/100M/1129_100M_Engin.html

[asphaltgambler]

I am almost certain this was done and published regarding a GM vehicle back in the late 70's to mid- 80's. Someone did extensive research detailing the cost only. Something like 5-6 X the retail price.