Ferrari Mailing List: Re: The clYde testimonial

[Paul K Rentiers (rentiers]

On Feb 2, 2010, at 11:11 AM, Michael James wrote:

> Well, this is where Clyde and I part company, slightly - I realize that the 
> Dealership must make a profit if it is to stay in-business.  

Not really. Perhaps excepting exotic cars, but in mainstream auto sales they 
are not selling cars. They are selling paper. 

Michael buys a $25,000 Chevy and the helpful sales manager reduces the payments 
by spreading them over 5 years. At 12%. Michael buys a $33,367 note. The dealer 
then delivers the car, and flips the note to MegaAcceptance at a discount. Car 
gone. Profit turned. The delaer makes what he can on the car sale, but really 
doesn't care about the price too much as long as he doesn't lose money. It's 
the note he is after.