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On the contrary, if played right, the dealer will make $3-4K on the front end, and about the same on the back end. Used cars are the high gross makers, as no one (but the dealer) knows how much they " have in it" (due to incentives, factory-to-dealer allowances and a myriad of other things). New cars are low-profit makers, because invoices are widely available
On the contrary, if played right, the dealer will make $3-4K on the front end, and about the same on the back end. Used cars are the high gross makers, as no one (but the dealer) knows how much they " have in it" (due to incentives, factory-to-dealer allowances and a myriad of other things). New cars are low-profit makers, because invoices are widely available
Invoices are only the beginning of the story. The financial relationship between the dealer and manufacturer is so complex that it is nearly impossible to figure out how much a car really "costs" the dealer. You have to add in items such as "holdbacks," not to mention the warranty program, marketing allowances, incentives, etc., etc., etc.
I've represented car manufacturers and seen the accounting records with particular dealers -- and I still can't figure it out.
My advice: find the car you want and negotiate the best price you can. Don't worry about trying to decipher the dealer's byzantine finances.