How do franchised dealers cope with massive deprecation?

[Frimley111R]

I was watching a few vids on YT where they discussed (in this case) dealers with Porsche's that were losing tens of thousands and sitting on forecourts for up to a year. Cars that cost £150k new and months later were worth £100k in the forecourt and still not selling. One franchised dealer said they just couldn't make the numbers work on the pricier models due to the huge initial depreciation. When they've got big stocks of cars the overall depreciation must be incredible...

[ChocolateFrog]

Porsche probably cover it with a couple of minor services.

[Countdown]

Depends on the profit margin surely?

If the car cost £80k and retails for £150k then even at £100k they’re not losing out.

[Sheepshanks]

If it's new they don't pay for them until they're registered so the manufacturer carries the loss.

I was in a Skoda dealer (family owned, one-off dealer, not part of group) as the market was slowing post-Covid and a salesman told me they're written down their used stock over £100K that month which was apparently a bit of a gulp moment.

Their spread on p/x to retail prices was huge though - offered £18K on car when they had same models up for £28K.