How dealerships work

Originally Posted by Urzakor

We get paid holdback, which is money not shown on the invoice.

Sometimes a dealership will also give part of that away if the customer is close to the dealership because they believe that they'll earn the customer's service and parts business - both much more lucrative than car sales nowadays. This is why dealers usually try and sell/give you oil changes and other service related stuff when you first purchase your car. They want to build rapport with you.

Secondly, when a dealership sells more cars, they sometimes get a bigger allocation. This is usually done over the span of a few months - it's sometimes why a dealer will try and sell you a certain car for cheap. It's probably been on the dealership for awhile and it's screwing up their turnover rate.

Customer Service Index surveys are also very important.

That's about it. I sell Honda's and I don't mind giving cars away at little to no profit... It just pisses me off to no end when customers grind on price for hours, then once you agree to everything they become rude and are unhappy despite getting the car at a good price. At that point, I'd rather not sell the car at all because the CSI's is going to be bad and I made no money on the deal.

Sorry for the off-topic rant >_>