That's gross margin, not profit. Then the dealer has to pay for the land, capital equipment, salaries, utilities, taxes, interest(*), etc. Profit is what is le

That's gross margin, not profit. Then the dealer has to pay for the land, capital equipment, salaries, utilities, taxes, interest(*), etc. Profit is what is left after all these expenses are paid. In most situations, the dealer borrows to buy the car and then pays interest on that debt while trying to sell the car.