Originally Posted by rory breaker
Dealers do not pay invoice as I said, and as you eventually confirmed. For all the reasons you listed. Let's not lead people to believe otherwise. When you (generally speaking to the public) see "edmunds invoice price" and you paid $500 over that number...that does not mean the dealer only made $500 profit. Thats what they want you to think, that's why "invoice pricing" was even created. "Hey guy, Im taking a $731 loss here, what do you want me to do?"
Dealers *do* pay invoice. And it is what BMW NA invoice the dealership for your car. But on top of that, the dealership, also get kickbacks, market incentives (which they don't use it all of them), product credits, sale person bonuses, dealership bonuses, you name it, they have it....
Why do they do it this way? Because it reduces the dealership's pre-tax profit, and then they pay the minimum taxes.