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Most car dealerships display their inventory in a showroom and on a car lot. Under federal law, all new cars must carry a sticker showing the offering price and summarizing the vehicle's features. Typically, salespersons working on commission only, negotiate with buyers to determine a final sales price. In many cases, this includes negotiating the price of a trade-in the dealer's purchase of the buyer's current auto. Negotiations from the dealerhip's perspective is often referred to as "desking" a car or auto deal.
Profit margins on automobile sales are surprisingly low. A new car dealer may mark up a car or auto by less than two percent over the manufacturer's invoice cost, and typically the car or auto dealer borrows from the manufacturer for inventory and pays interest (called flooring or floorplaning). On the other hand, manufacturers pay "hold-back" payments as incentives to dealers who reach sales targets, thus improving the fiscal stability of dealers.
San Jose is the third-largest city in California, and the tenth-largest in the United States. For the past several years, it has held the title of The Safest Big City in America. San Jose is located in Silicon Valley, at the south end of the San Francisco Bay. With a population of 912,332 San Jose is the largest city in Northern California. Once a small farming city, by 1950 San Jose was a magnet for suburban newcomers in new housing developments (1960s to the 1990s) and became a large thriving urban center of Northern California. San Jose is sometimes nicknamed L.A. North which points out its similarity to Los Angeles as of the end of the 20th century.
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