Quote:
Originally Posted by VTENGR
That's been my experience as well. My local dealer wouldn't even give me 10% off of a late allocation 2019. The best I'm looking at now is about 5% otherwise I have to expand my radius to find more dealers.
I don't know how some of these dealers are willing to sell for less than invoice. Doesn't that mean they're losing money on the sale?
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The way I understand it, there are a few situations where a dealer is willing to lose money on a sale. One is if they have a quota to hit which qualifies them for a bonus greater than the loss in profit of the sale.
So for example, let's say they need to sell 100 cars to hit quota which qualifies them for a $100k bonus, but they're projecting to be 5 cars short. They'll gladly take $5k loss on each of those remaining cars to get that $100k bonus. This is typically why you'll get the best deals at the end of a month/quarter/year, when hitting quota is way more important than making a profit on each car.
The other reason I'm assuming is if they see potential for dealer market share growth and repeat business.