How Car dealerships make money $

@themikefedele

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SoundTikTok sound · original sound - themikefedele

Promoted product

Mercedes GLS 450

Why it worked

The video taps into a common consumer frustration about car prices and offers a clear, concise explanation of dealership profit margins. The use of a specific, high-value car example like the Mercedes GLS 450 makes the concept relatable and engaging.

Summary

The video explains how car dealerships profit from new car sales by factoring in overhead costs like staff and inventory. The speaker contrasts this with a private seller, suggesting they make less profit on a high-value car like a Mercedes GLS 450 due to lacking these dealership-specific expenses.

Structure

1Introduction to dealership profits
2New car depreciation
3Dealer's profit margin
4Comparison to private seller
5Explanation of dealership overhead

Original caption

Real #mikededele

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Product placement

Mercedes GLS 450: ACTS - it is the subject of the discussion about how dealerships make profit. Removing it would change the video's focus. Mercedes: APPEARS - it is part of the product name, but not a separate entity acting in the video. Removing it would not change what happens.

On-screen text

How Car dealerships make money $ New car is overpriced once it hits the pavement, The dealer's making their profit So the regular guy in the street selling a Mercedes GLS 450, he can't make as much profit He doesn't have all the hardware, he doesn't have the overhead, all of the people to pay and the place to keep all the cars So a lot of that price $120,000 I paid is is gravy for the the Mercedes dealer That's the that's the reason That's the reason

Transcript

New car is overpriced once it hits the pavement, The dealer's making their profit. So the regular guy in the street selling a Mercedes GLS 450, he can't make as much profit. He doesn't have all the hardware, he doesn't have the overhead, all of the people to pay and the place to keep all the cars. So a lot of that price $120,000 I paid is is gravy for the the Mercedes dealer. That's the that's the reason. That's the reason.