Wholesale vs Retail

Wholesale is the price vehicles trade for between dealers, reflecting raw market value without reconditioning, marketing, or dealer overhead. Retail is the price a consumer pays after the vehicle has been inspected, reconditioned, advertised, and made available with dealer support.

The spread between wholesale and retail is where the used vehicle business operates. Understanding and protecting that spread through disciplined acquisition, efficient recon, and accurate retail pricing is the core of used vehicle profitability. Margin compression occurs when the spread narrows faster than costs can be reduced.