This is extremely inaccurate. It is highly illegal to RDR or report cars sold that aren't technically sold for the purpose of getting an incentive payment from the manufacturer or even in general. It can likely cause them to lose their dealership and is a major no no! "smart dealers" absolutely don't do this. Doing so causes title issues, warranty issues and all kinds of other problems.
When a car is put into demo service, it is reported to the manufacturer as such and not RDR'd as a sold unit. In return, the manufacturer gives a monthly payment, or "allowance" to the dealer as an extra incentive to sell the car being that it will now have a few extra miles on it. Each dealer is allowed a certain amount of Demonstrator vehicles which are typically driven by dept. managers and retired before they hit 5000 miles (depending on local state laws). Once retired, these vehicles are returned to the new car lot and are still sold as new cars with the factory warranty starting from the existing mileage being that they have not been titled. In some cases and they are rare, a car will remain in demo status for an extended timeframe and because the mileage exceeds statutory limits will be moved and sold to used inventory and the money accrued from the manufacturer will be used to write down the cost so the dealer takes less of a loss. However, this is extremely rare.
And yes, dealerships do lose money on cars every now and again... Just not very often:thumb: