Originally Posted by big john

Don't forget about "factory to dealer incentives". If you move enough cars the finance arm (was GMAC) puts money into your account instead of charging interest, or "flooring". Some years ago my dealer was making over $100K per month by moving so many cars. They could actually sell cars below invoice and still make money.

Also, years ago we were doing over $300K per month in labor. It might be double that now as hourly rates have soared. Plus, markup on parts is ridiculous, and parts sales is higher than you might think. I don't have figures for the dealer but when I worked for an independent shop the gross parts sales was more than the labor. That guy paid us 5% of the parts which was a sweet bonus.

A new car dealer can make a butt-load of money on used cars, too. Used cars are a good place to hide money, too. All kinds of bs is possible with used cars.