There is no such thing as a dealer's invoice, if they sell every other car at below dealer's invoice, the auto dealership would be considered non-profit organizations.
When a car sales guy sells you a car, after all the overheads, the dealership owner takes a cut, several levels of managers get their cuts, then the sales guy gets his. Even at the "below invoice price"', they all still get their cuts. Sometimes, the manufacturer would cut their take, allowing the dealerships to either have promotions, or unannounced price cuts.
If you look at the price/cost ratio of a car, it is probably similarly structured as an audio component. It is just that there are less middlemen to get that component from the manufacturer to you than it does a car, and a dealer sells less volume of audio components as cars.
My cousin used to work as a salesman at an Acura dealership. He told me that he's pretty much set for the month financially for selling 4-5 cars.
FrankC
When a car sales guy sells you a car, after all the overheads, the dealership owner takes a cut, several levels of managers get their cuts, then the sales guy gets his. Even at the "below invoice price"', they all still get their cuts. Sometimes, the manufacturer would cut their take, allowing the dealerships to either have promotions, or unannounced price cuts.
If you look at the price/cost ratio of a car, it is probably similarly structured as an audio component. It is just that there are less middlemen to get that component from the manufacturer to you than it does a car, and a dealer sells less volume of audio components as cars.
My cousin used to work as a salesman at an Acura dealership. He told me that he's pretty much set for the month financially for selling 4-5 cars.
FrankC