- Aug 31, 2023
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https://www.jdpower.com/cars/shopping-guides/how-much-does-a-new-car-dealer-make-on-a-dealSomehow my post got deleted, so I am reposting again.
Having been in the business, I chuckle at those who do not understand the NET dealer profit after year-end kickbacks And other volume incentives. The fake dealer invoices are priceless. LOL! You will never see the real invoice unless you are the principal or his accountant.
Please stop the naivety. Wake up! Do u really believe that a dealer can employee 100 Staff, pay giant property tax, huge advertising, floor $10 Million of cars, build a $7 Million building, buy 2-3 acres of prime real estate, pay for the carrying costs and all the other expenses? And buy more dealerships. And then give away the car for pittance profit?
The average big 3 dealer makes 30% on a new car. That’s how. Now you know.
But what could JD Power possibly know that you don’t .