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How does a dealer make money on below invoice sales?

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Old 06-13-2007, 08:47 AM
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How does a dealer make money on below invoice sales?

I'm trying to figure out how a dealer makes money on a sale he makes below invoice?

I am under the impression that the dealer purchases the car from Infiniti for invoice, and anything above invoice is what they profit.

Am I missing something?
 
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Old 06-13-2007, 09:13 AM
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It's called factory hold back.
 
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Old 06-13-2007, 01:45 PM
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holdback covers real costs associated with keeping the car in inventory, cleaning it, paying the salesperson, etc etc. In Florida, dealers charge a dealerfee which helps with some of the cost.

Also, there is money from the manufacturer that is not disclosed to the customer, called dealer cash. We can use it in any way we want. I doubt Infiniti has any dealer cash on the new sedans but I bet they have a ton for coupes and left over 06's.
 
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