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golover721 | 5 years ago
It’s important to remember with new cars there are a number of ways the dealership gets paid not just what they the sales price is for a car. There are holdbacks from the manufacturer where they pay a certain amount per car sold. The amount often goes up based on hitting some sales goal for the month. On top of that there are other manufacturer incentives once again usually based on a specific sales goal whether on a particular model or just overall. Not to mention the profit on any trade in.
If often makes sense for the dealer to sell an individual car at a loss to help them make these goals.
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