So, how do car dealers make money?
You have probably heard a salesperson say to you “You seriously got a great deal” or “We are selling this vehicle for a loss”. Are they telling the truth? Did you hook them up to a lie detector test?
Probably not, huh?
So how do car dealers survive if what the salesperson said was true? There are a few profit centers in the dealership and they each have their own department. Sales, F&I (Finance and Insurance), Service, Parts, & Body Shop. Some dealerships may also have an after market department, too, but for this example let’s concentrate on the most common.