I'm here to talk about some common myths about car dealers. What is worse a attorney or a car dealer. Thats a constant joke. I do think that is is another side to the car business that you just don't hear about. Car Dealers pay out about 60 percent of our income to taxes. So when you add in your state, local and federal tax and then the payroll tax and the property tax that we pay about 60 percent of what we take in gets paid back out in taxes. Car dealers are huge contributers to the local economy.
The second thing is everybody thinks that they are getting scammed by the car dealer. But the reality is that a car dealers have huge multimillion doller investments and our margins are razor thin. A typical car dealer according to the NADA (National Automobile Dealers Association runs at a 2.5% margin. So as you can see their is very little room for error. Why is the margin so thin, well the cost of business is high, hugh payroll costs, huge insurance costs, we have to have shop tools to repair any type of car that comes in and the list goes on and on. So what does that mean to you, enjoy the car buying process, don't think that every car dealor is out there trying to scam you. The reality is that most dealer are unbelievable contributers to the local economy. Find the best dealor at there for you, look at Google reviews and just enjoy it, a new car should be something fun for you. This is Ted Heater "The Dealer For the People"
