Originally Posted by Guitar Jones
Originally Posted by klunick
Odd because my local Toyota dealer recently spun their used car operations off. You go to the dealership and it is new cars only. Have to go about a block away for the used cars. Normally wouldn't notice that except they have set up a used car only sales location in the adjacent county. So I'm figuring the new sales and shop belong to one side and the more profitable used cars are their own gig. The dealer can then report back to the manufacturer that profits are only X on the one side. We all know that for years, the money was on the used side but now, they can kinda wash their money. Used cars are bought, sent to the other service side, repairs made and profit recorded on that side. Years ago a Honda dealer owned the transports. To wash profits a bit, he would simply charge more to deliver the cars.

It doesn't work like that. The franchised dealer buys new cars and parts from the manufacturer. Used cars are the dealers, has nothing to do with the manufacturer. Simplified version.


Shows profit margins. So the dealership can now go back toToyota and say show they are only making X% overall. The used car side is the true money maker.


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