[GapRunr]

So how does a dealer make a profit if a customer gets a vehicle for at or below invoice (before incentives)?

There are incentives, bonuses, volume discounts and rebates available to the dealer when they buy the van from Ford Motor Company. Your dealer is a separate business entirely from Ford Motor Company. They buy from Ford and resell to you. This margin always exists, so that we can all feel good about getting a vehicle at or near invoice, and feel great about getting one below invoice, while the dealer still makes the profit they need to stay in business.

 

[GapRunr]

I've paid less than invoice on the last 7 cars I have bought. At invoice they are making money. Whether it relates to net profit depends on how well they manage their dealership.

Edit: If the margin on a new vehicle was 5.8% they wouldn't be in the business of selling cars. There are extra margins, holdbacks, volume discounts and rebates to the dealer that also come into play.