Quote:
Originally Posted by Katsunami
Many expensive products such as cars are put into the showroom by the manufacturer. The dealer only pays the price after the car is sold. If it's an older model, the dealer can arrange to have a discount (partly) subtracted from the price he has to pay. That is why many dealers can provide a 10-15% discount even on newer cars; the manufacturer carries part or even all of the cost. At least, it's like this in the Netherlands, and it of course applies only to very expensive products.
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In the US, the dealer pays interest on the loan of the car in their showroom. It is paid monthly, and used to be about 3/4% per month, but probably less now.
So the longer it sits on their lot, the more their actual cost is.