Dealers Make Money on Used Cars and Lose Money on New Cars, says NADA

[editor]

Things are getting tougher on the new car side of the lot - the NADA says many dealers are now losing money overall on new car sales. Many dealers are making their business profits solely on their used car sales.

You can read the piece HERE

[drew630]

My understanding is that its been that way for a while now. Granted, that understanding is coming from a small, rural, chevy dealership.

[CBECK]

As in the words of Hyndai, DUH!

[BryceStrong]

In many ways, my job is damage control. I'll make more selling vehicles during my career than the owner ever will. But our pre-owned department, Hummer dealership, and service & parts departments are all profitable. Otherwise, after all of the overhead, new vehicle sales is a loser.

[cadillacricket]

Originally Posted by CBECK

As in the words of Hyndai, DUH!

Why does everyone just accept this as status quo? Shouldn't people in America be outraged that one of the main things being produced by americans for americans are the vehicles we sell and drive and make?

[ChebbySalesDept]

No one really knows the bottom line for most dealers in the new car department. Where do you think the boss's boat payments, Amex, home gardener, etc. gets charged to? This is nothing new to the car business.

GM statements say what the accountants want it to say.