You're absolutely right. Dealers make more than 3%. They have to. It's unfortunate that profit has become such a dirty word that the dealers must hide their actual costs. But the simple fact is no business can pay the salaries, rent or mortgage, taxes, license fees, electric and other utilities, match employees social security payments (yes folks, whatever is withheld from your salary for social security is matched by your employer) and pay the hundreds of other small and large expenses I forgot to mention on 3% markup. It can't be done. I was not a car dealer, but I spent over 20 years running a small business and I can flat tell you, 3% markup wouldn't dent those expenses. Whatever you do for a living, however you earn your pay, I guarantee you, your employer makes more than 3% over investment. If they don't you'd better look for another job, because this one's going under.
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