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      01-25-2013, 10:26 PM   #16

Drives: 528-maybe
Join Date: Aug 2010
Location: California

iTrader: (0)

Originally Posted by py0413 View Post
is that real for US dealers to sell a $70k car and only making $500 profit?
Your posing an interesting question, I think.
First of all, not all dealers will make that deal.
Second, for those that do, I would offer this explanation. They want to sell the cars quickly to increase their return on investment dollars.
Let's say, hypothetically, if they only have 70k to invest to buy inventory and they only buy 1 M3 and it takes them 12 months to sell it at, say, 1K profit, then their return on annual investment is 1.4%. If they, instead, buy two 3 series car for they same 70k, sell 4 of them during the year at a profit of $500 each, then they have doubled their annual return on investment to 2.8%.
Make sense now?