Why do dealerships bother selling new cars?
Now, before you say that’s a weird question, take a look at this…
The National Automobile Dealers’ Association reports the profit margin for selling new cars is a minuscule 4%.
In fact, sometimes a dealer makes almost NO money on a new car sale (especially if they need to liquidate inventory).
So even though those rows of shiny new cars may look like beaucoup cash in the bank, they certainly aren’t where a dealer’s income actually comes from.
Which begs the question…
How do they make their money?
Well, a good chunk come from “upsells” like financing charges and extended warranties.
But their REAL profit center, which accounts for fully 44% of gross revenues, is in…
Click here for the full article.
COACH. TRAINER. HOME BUSINESS ENTREPRENEUR.