OEM's and dealerships make a very large amount of their profit on parts (OEM's) and repairs (dealerships). And both make money on financing. This is especially

OEM's and dealerships make a very large amount of their profit on parts (OEM's) and repairs (dealerships). And both make money on financing. This is especially true for dealerships. Sure during a shortage dealerships are happy to sell limited inventory at much higher margins but in the long term that's going to eat into their bottom line. Financing alone often surpasses profits on the car itself. Then also fewer people will bring their cars in for scheduled maintenance and get their cars fixed during the warranty period. After that a lot of people get their cars fixed at less expensive 3rd party repair shops. A family member worked in the industry for years and conveyed this to me, but it's also what the sales manager told me when I bought a new car recently: No one was happy. Salespeople made fewer bonuses hitting quotas and the dealership's long term profit forecasts were way down, even if current profit margins made short term profitability the same or slightly higher than usual.