How much money does a car dealership owner earn?

Answer 1

AnswerIt depends on whether it's an individual owner or part of a corporation. A dealership owner basically buys or finances all the cars on his lot- which he purchases from the auto makers. His profit usually comes from the difference that he sells the car to what he purchased it for. On used cars he makes money by accepting a trade for as low as possible and selling it for market value.

Also a factor is whether or not they have a service department because that is almost guaranteed income. So to answer your question it varies alot unless you get more specific. I'm sure unless you actually own a few dealerships you're not making billions though because as a dealer you don't take home all the money you take from selling a car. You're just like any retailer, everyone has to get their money too.

depends on the company. Most car dealerships sell hundreds of cars a year. with each of those cars worth thousands of dollars they could easily earn millions or billions of dollars every year.

Of course running a car dealership cost money. Probably more then a third of their profit is spent on car parts to make the cars, workers,and machines to make the cars.