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How do car dealers make their money 2024?

Alex Smith | 2023-06-06 11:40:36 | page views：1624
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Olivia Roberts

Studied at University of California, Berkeley, Lives in Berkeley, CA
It's typically 2 or 3 percent of either the invoice or the sticker price of the car. On a $20,000 car, a holdback represents $400 to $600. The holdback allows dealers to sell a car at invoice price (or even below invoice) and still make money. Most manufacturers offer holdbacks to their brands' dealers, but not all.
2023-06-07 11:40:36
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Charlotte Ross

QuesHub.com delivers expert answers and knowledge to you.
It's typically 2 or 3 percent of either the invoice or the sticker price of the car. On a $20,000 car, a holdback represents $400 to $600. The holdback allows dealers to sell a car at invoice price (or even below invoice) and still make money. Most manufacturers offer holdbacks to their brands' dealers, but not all.
Where Does the Car Dealer Make Money? | Edmunds
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