How I have scored invoice pricing with 3.99% APR on my 370Z?

theDreamer

I will answer your question seriously:
~Service department
~Extended warranties
~Rebates (Manufacturer give rebates, but dealership does not always have to extend to customer)
~Financing

Dealers usually get the car for about 3-4% below invoice, more with rebates from manufacturer, but of course this is on the average car which is currently about 23-25,000USD. Not really sure on premium cars (40+) or super cheap (<15), but dealerships will on average make more than 200USD on a car, probably 650 or more.

Then again, with the market in its decline and everyone looking to cut corners, we could see some prices slashed in hopes to bring in buyers. Which would cut "profit" for the dealership greatly as they just try to move inventory.

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antennahead

This is very true. I used to have the dealer finance department under me in a prior career. They make very little money on the actual sale of the vehicle. Rebates bring in some, as most buyers know little of, or don't understand, "holdback". Next is "backend product", extended warranties being the biggie there. After that, financing is very large, the more the dealer can charge you interest rate wise above the "buy rate", the rate the financial intitution charges them, the more they make. Most buyers buy "monthly payment", not interest rate. Finally the service department. This is a major profit center for the dealership. Warranty work gets billed to the manufacturer. They sell cars to enable all the other profit centers. Don't get me wrong, they still make money on some sales, but that it not the priority.

John