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My Dealership took a HUGE loss on my deal; several thousand under invoice on an ordered (not inventory) car... But they also told me they really don't lose any actual money...whatever that means. There is all this backend crap with BMW we don't know about.
Wouldn't give any details on how it works but I doubt they are taking a real loss unless they are looking to dump the inventory. In this case, I would think they would be surrendering allocation as you state.
I do not claim to be an expert on this, just saying there is probably much more to this than meets the eye.
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