How do car dealers make money?

Question

How do car dealers make money?

Answer 1

Lets assume you buy a car from this company and trade in your old one.

The one you bought....

1. Car price - marked up a bit

2. Insurance - they get commission as long as you pay for the next few years.

3. Finance - they get some rebate or commission.

4. MISC - plus many admin charges,

The one you trade in.

1. Car price - they sell at a higher price.

No 2. to 4. above are applied to the next buyer.

5. Unused portion of your road tax, insurance, COE etc - They can get cash back pro rated for it if they export it or terminate it.

Above info are from two of my friend. One is a used car  and the other is a new car salesman. Both of them are still in the industries.

And above info are of normal case. The source and nett profit are still base on case to case basis.

Answer 2

the dealer make 5 to 35 thousand dolllars per vehicle plus maintainances services

(on new vehicles)

Answer 3

uhhhhh maybe by buying a car and selling it for more money but hay what do i know , right!

Answer 4

by selling cars

Answer 5

If they don't sell cars; they don't make any money.

Answer 6

this is a wild guess, but maybe selling cars?