Quote:
Originally Posted by THE EVIL TW1N
That's just on the camaro. They have to offset the losses from the other cars. It's like CAFE where cars like the Camaro are going to be able to sold while some of the electric/hybrids will help with fleet fuel economy.
Just because there is 3% holdback doesn't mean it's profit. If a dealership sold everything at invoice, there would be no dealership. There are so many things that must be paid for by the dealership, from advertising, electricity, custodians, land leases, the cars they're paying interest on because they've been sitting a while (which do get sold at a real loss sometimes), window washers. etc. etc.
It's easy to bash a dealership when you only know what the business is like from one end.
I worked at a dealership before. The sales PROFIT from UAG (United Auto Group, they own a ton of dealerships all over, all makes) on the sales end of the dealership was ~1%! |
Yes the 3% holdback does mean it is profit. It is simple math. They buy the car for A they sell it for B. Just because they have other business expenses doesn't deminish the profit they made. Thats like me going to my boss and saying um yeah I didn't get paid last month because once I got done paying all my bills I didn't have any money left.