Car Shopping Tip: Steering Around "Profit Points" Page 2

April 11, 2011

Back to the beginning

How can a dealer sell a car for a loss on the selling price and still stay in business? If they make a profit on the trade or car loan—or by selling “back-end” products we didn’t even get to in this article, including extended warranties, car care products, and security systems—it can pay to “steal a deal” from a competing dealer and lose money on the selling price, but more than make that up with other profit points.

Dealers prefer to make money on the selling price, too. But in this period of consumers using the Internet to shop for the best price, ending up with even a decent gross profit is worth it to many car dealers, no matter how they get there.

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