Margins on new cars are not even close to uniform. They vary from a low ofa few hundred dollars on some Volkswagens and Scions to a more typical
range of 3 percent to 6 percent on mainstream vehicles like Toyotas andChevys. Higher-end models vary as well, but usually over a spread of eight (^)
percent to 13.5 percent. Not all of this profit margin is “above the line.” Partof the profit on most brands is in “holdback,” which is paid to the dealer
based on a host of parameters. Here is an example of an actual Forddealer invoice; on it you can see the spread between MSRP and invoice, (^)
and the holdback amount: