Dealerships big and small increasingly have shifted their focus toward used vehicles — a side of the market that traditionally provides dealers more control and creative opportunities than the new-vehicle business.
And the shift en masse toward used vehicles also comes down to money. According to J.D. Power, dealers made an average gross profit of just $140 on a mass-market new car this year. But for used cars 5 years old or less, the profit was $950. And new trucks cleared $540 each, while used trucks 5 years old or less gave dealers a $1,200 per-vehicle profit.
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