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Dale Nixon (not verified)    May 29, 2022 - 7:13AM

Not sure that you explained how a dealership makes money correctly. The holdback is a credit to the dealer from the manufacturer in addition to the standard markup from wholesale cost to retail. Dealers wiggle room is more than 2%. Dealers also make a great deal of money selling extras like extended warranties and service plans and selling financing (be it from a bank or the manufacturer’s finance arm) Dealers also receive co-op advertising subsidies from the manufacturer for internet, TV and radio advertising. Dealers do not make money to put their name on kid’s soccer jerseys, that’s an expense (deductible as advertising/promotion cost)

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