Is this decent? Can I do a little better?
Dealers lose money selling lots of cars, so when dealers say that, I don’t really take much to it. Selling new cars is a loss making business that supports the very profitable businesses of selling used cars, parts, accessories, warranties, service and in-house financing.
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Your assumption is correct. Don’t believe what they say.
i hear “we’re losing money” every time i shop for a car. Don’t worry about it, it’s part of their negotiation tactics.
Agreed. And in other news, water is wet.
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At 10% he’s still got a couple percent of the holdback left.
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Go to Edmunds and choose build your car, then find out what invoice is for your build and see where your 10% lands, probably somewhere between $500 and $1000 below invoice, which many dealers will deal on, then add incentives to it. . This of course is for a new car, not a demo.
Unless the dealer needs to move units to hit an escalator for a store bonus and are willing to absorb a few loser deals to do so they are making money on the sale, even on skinny deals. Don’t worry about statements claiming they are losing money, they just want your empathy.
Tell them you’ll gladly take your business elsewhere if it’s too much of a hardship for them.
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That’s their negotiating tactic. My negotiating tactic is saying my wife won’t let me come home with anything more than x-price. And suddenly we both understand each other 
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This is not true, new cars sales is a profitable business by itself. You know that not everyone gets leasehackr deals, right?
Not really, a new car operation is very expensive to operate. Less so with a high line dealer, parts and service are the bread winner at the dealership.
I am not saying the new car sales is the most profitable part of the dealer’s business model. I am only saying the new car sales also make money and the dealers do not “lose money selling lots of cars”.
Once you start paying floor plan and the mortgage on that fancy building there’s not allot left.
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Don’t forget those donuts and coffee they provide in the waiting area.
What are some good sources on how to determine invoice pricing for a car?
And the nitrogen for the tires
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New car sales is on average 30% of franchise dealer profit, used 26%, parts & service 44%.
There is a reason the dealers fought Tesla’s direct sale model tooth and nail. 30% of profit is not nothing and new car sales drives all the other departments. Someone who buys a car from a local dealer is likely to trade in his used car at the same dealer and service it there as well.
I’m surprised it’s that high on new cars, used cars make way more money in my 7 years working at dealerships.
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