I recently found a car that a distributor sells cheaper than the official company. How can the distributors in genral afford this decision financially?
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What do you mean by a distributor sells for cheaper than the official company? Where are you located? What brand of car?
Because in the US at least, you cannot buy a vehicle directly from the manufacturer (other than Tesla, Rivian), you always buy through a franchise dealership (eg. Bob Smith Ford or Toyota of Springfield). What a brand has as MSRP and what a dealer sells for are not the same — historically the dealers typically had to offer discounts off MSRP to get buyers although in recent years they’ve actually been able to add on “market adjustments” on top of MSRP. But dealers don’t themselves buy at MSRP, they pay an invoice price that’s $1000’s less, plus there are often additional manufacturer hold-backs and incentives for selling certain quotas that provide additional payment from manufacture to dealer. And there are all sorts of additional revenue opportunities for dealers, from the various fees they charge (doc fees and such), to add-ons like warranties and accessories, to kickbacks from financing partners.
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