If every car dealer sold cars at 5% below MSRP (out the door price - the 5% includes taxes, fees, and any additional costs), could the dealer stay in business?
A friend of mine (who worked as a car salesman) told me that the MSRP is worthless. He said that they could do that because they get the car for substantially below MSRP and that the car dealers get bonuses for meeting sales goals. So even if they sell for below MSRP, they would get additional money from the manufacturer on top of the sales price.
Are there any people on Talk of the Villages that worked in auto sales that can confirm whether this is true?
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