For every new car that is being sold, how much money is split between the car manufacturer and the licensed dealer that sold the car? How come car dealerships are individually owned and licensed by the manufacturer? Can car manufacturers own dealerships?
cars are sold to dealership at the so called "invoice price", and it will be a very closely guarded secret.
After a quick google search -
https://www.llctlc.com/post/how-much-does-it-actually-cost-manufacturers-to-make-a-car
There's not really a "split" so much as there's a mark-up like with any retailer.
Also more profit for the manufacturer if they're not dealing with maintaining hundreds of stealerships. I believe the anti-monopoly laws might play into it as well.
How much money is split between the car manufacturer and the licensed dealer that sold the car?
The dealer “buys” the car from the manufacturer at an invoice price. The dealer than sells it for as much as they can. Anything above the invoice price is the dealers to keep. The invoice price is all the manufacturers. As for how much profit, I don’t know.
How come car dealerships are individually owned and licensed by the manufacturer?
it started off as a way for manufacturers to sell cars in different markets without putting down too much cash and taking the risk.
Then it morphed to a legal oligopoly where car manufactures are mandated by law to use dealers.
Can car manufacturers own dealerships?
car manufacturers are legally mandated to sell cars through third party dealerships. Tesla technically doesn’t have dealerships. They are showrooms, and you have to order your car online. That’s how they got around the dealership laws.
Why don’t other manufacturers do what Tesla is doing? I wish they would, but the middlemen STEALERSHIPs would throw a hissy fit. I hate dealers.
