how certain distrubutors can sell cheaper than the factory or manufacture price

Question

I recently found a car that a distributor sells cheaper than the official company. How can the distributors in genral afford this decision financially?

In: 69

Answer 1

They dont sell at a loss. If they are seling the car at a “loss”, they sell additional things such as assists or electronics for 2-3 times higher than average and get the total value where it was supposed to be. Alsoc There are international laws to restrict dumping products into markets to kill off competitors. So in general, things may seem to be sold at a loss but in reality they are not.