They make a ton of money, just not in the form you think they do. A volume dealer will routinely lose money on a new car deal to make it up by hitting an incentive. Basically, and this will be a rather general example, they need to sell 30 Tahoe's in the LS variance for the month of November and they receive an incentive from GM. The incentive may be $30,000 30+ but if they sell 29 they get $0.00. So this month they have a sale on that particular model and give their lowest price which is $500 over invoice so that they can make quota. They now have only made $15,000 off actual sales (without factoring in commission, overhead, etc.) but they were able to make their quota and the dealership gets a check for $30,000 thus making it $45,000. They also make bonuses (or whatever you want to call it) off financing you in house, warranties, etc. which can help further their profit.