On Fri, 01 Sep 2006 16:49:57 -0700, SMS >
wrote:

>A lot of people don't realize that true dealer cost, and dealer invoice
>are two entirely different things. $500 over dealer cost is invariably
>still well under invoice, is a pretty fair price to pay. Of course a
>dealer can't survive if everyone paid $500 over dealer cost, but
>fortunately there are enough people paying invoice or more to make up
>for those people that pay less.


GM used to have a minimum 3% hold back of invoice price that they
would give dealer after sale and 3% of 30K is 900 bucks so even a
invoice they are making at least 900 bucks on a 30K sale. They are not
starving as long as they can sell something it is when they cannot
sell anythiong at all that they feel the squeeze. BTW, my price
factoed in hold back too when I got cars 500 or less over true cost.
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