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. Dealers are independently owned, they don't need to show their profits to the manufacturer. They only need to abide by the dealer agreement and the policy and procedure manual. Any financials they share with the factory is only to show they are compliant. The factory doesn't care how much money they make as long as they are compliant with their agreements.
"Follow me the wise man said, but he walked behind"
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2019 1500 Long Horn Crew Cab 4WD, 5.7 Hemi.
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