[btilly]

The dealer makes more than that from the new car. In addition to the invoice price (which is significantly higher than the dealer price) they also make money from add-ons, extended warranties, and the loan terms.

This doesn't stop them from making top dollar on everything else that they can though.

[ssimpson]

And some manufactures have "holdback" which means the dealer can get a percentage back if the car sells within 90 days. For VW it is 2% off MSRP.

http://www.edmunds.com/car-buying/dealer-holdback/