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Is the car business so profitable?

Lincon · 2019-09-12T09:46:01+0000

Hello everyone,, The info is from onemotoring.com.sg Mercedes C180 OMV $35,306 COE $62,101 Total cost $144,003 Selling price $185,888 Gross profit $41,885 The OMV is supposedly the cost of the car at the factory gate. The gross profit is therefore about 120% So for every 5 cars they sell, they make 6 cars! Of course there are overheads, advertising etc. And there are also revenues from servicing and repairing. We have no choice unless we go to PIs but the PIs are mostly unreliable. So the ADs are rubbing their hands with glee. Conclusion : car sales is one of the best business in terms of returns?