If the margin really was 7.5% on the retail price, then how on earth could dealers afford to have so many pre-reg cars for sale, usually at 20-30% off list price ?
The facts of the matter are slightly different. Whilst the margin might technically only be 7.5% on one car, when dealers hit a certain number of cars sold in a month / quarter, they become eligible for additional discounts on ALL cars sold in that time period. In addition, they get bonuses (and/or commission) for selling finance, GAP insurance, 'paint protection' packs, etc. They also (they hope) get servicing at huge markup ofr the next few years.
The headline figure is most definitely not the whole story.
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