Not really. I don’t particularly like them, but they don’t contribute much to the cost of cars. They barely make anything selling the car. That’s why they are always pushing extended warranties, accessories and trying to get you back in for service. Most of these guys are just hustling and getting as bad a deal as the rest of us.

The dealers are under huge pressure from the manufacturers to move cars. They are given sales targets they have to hit or they don’t get paid. That’s why they end up selling a car for like $500 profit or even break even. There’s a good episode of This American Life called “Cars”.

Of course, none of this applies to high-demand cars that sell themselves. They will mark those up like crazy to survive because the manufacturer doesn’t pay a bonus for those and barely gives them any inventory.