and used care prices are spiking again because of it. I personally bought a car for 12,000 about 7 years ago, put 80k on it in that time. I just transferred ownership of it to my business and it valued out at $10,000 now, 6 months ago it was $6,000.
No. The dealerships get kickbacks from the manufacturers and banks on new vehicles. They aren’t a loss lmao. They make money multiple ways selling a brand new vehicle.
They get kick backs, but they don’t sell that high over MSRP and many people are much more savvy about cost of new/features thanks to Edmunds, Cars dot com, KBB, and dealer incentives to move inventory.
If a dealership is making money on new, you’re not doing your work with car shopping. Most don’t make money from new.
I mean, unless you know something I don’t? My brother in law was in sales for Chevy for a few years so that’s where I get my info from.
There’s ~3% built into msrp for the dealer. Then there are kick backs from banks they are pushing you to finance through. Then there are extras that are basically 100% profit. Then there are dealer installed options. How much can they possibly be expected to make for providing parking space? Dealers are absolutely fucking useless outside of test drives. Every cent over msrp is basically theft.
Who takes a used car to dealer for service? Are you saying they make more money on used cars because they can price gouge more effectively?
unless these strikes keep up for real, i doubt there will be enough impact to raise used car prices for real. i am sure koreans japs and germans will step right in. also, many of american cars are made in mexico lol