[stovt001]

Yes, dealers do make little to no money off of new car sales. It varies from transaction to transaction of course, but many are indeed sold at a loss. Dealers make most of their money on the parts, service, and F&I side of things, just like movie theaters make little profit off of ticket sales but make it up at the snack bar.

Direct sales from the manufacturer then actually could work if the dealership collects a delivery fee and still has parts and service facilities.