: Franchise dealers buy new cars directly from the automaker at an "invoice price," which is typically lower than the MSRP (Sticker Price) .

: This is where most used cars are sourced. Dealers attend "dealer-only" auctions to bid on fleet vehicles or cars traded in at other lots that don't fit their specific inventory needs. How Dealerships Sell Cars

The business of buying and selling through car dealerships is a multi-layered cycle involving trade-ins, auctions, and retail sales. Dealers essentially act as intermediaries, sourcing vehicles at wholesale prices to sell them for a profit. How Dealerships Buy Cars