Originally Posted by Schleprock
No, JoeSchmoe is correct. For many dealerships, it's actually the service dept. that keeps the company afloat or in the green.
Below invoice is still a pretty good profit for the dealer.
The "invoice" is not the whole story on what the vehicle costs the dealer.
If you finance, they get a cut of that, either as a refer fee or commission
If you trade, 2-3K profit on a decent trade helps as well
The service department certainly helps, particularly if it is a decent one.
I priced on TrueCar, Edmunds, and a couple others I don't recall, but the very first offer I got from two local dealers was lower than any of those. Edmunds came closest, YMMV/SRA. Affiliate knocked off a bit more. Cussed out the sales manager [known him for a few years] got a bit more.