Dealership Volume Incentives?

The modern dealership model is that cars typically have 6-8% of room between MSRP and invoice, then the rest of the prospective profit is from factory volume incentives. (For example: if they sell 50 cars in a month, they’ll make x amount from the manufacturer.) This is how dealers are able to sell cars for thousands under invoice, and in this competitive market I’ve found dealers are typically able to sell a new car for at least ~12-13% off MSRP.

That leaves me genuinely curious about how much room there is on the back-end, since at face value it sounds like those volume incentives are well over $3000 per car for BMW — which seems high. But I assume most dealers wouldn’t lose money to sell a new 2019/2020 car.

Every car is different, this goes even beyond model…trim, options matter. What’s a loser today may not be a bad idea tomorrow.

The incentives can change drastically based on the model or even the options on that particular model. I was hoping somebody here would be able to share more details since I am curious how it works, maybe with an example or two. Dealers structure their sales around those incentives.