I agree those look like (over?) generous margins but I'm guessing a dealer might say there are offsetting costs. These might include any VAT element, the cost of financing inventory, overheads while cars are in the dealers ownership, workshop inspection and remedial work and taking on the risk of giving a warranty. Do dealers just accept the risk of giving a warranty or can they can cover it with insurance in some way? The question is where does the balance lie but I'd picked up the idea somewhere that a UK dealer would work on a margin of a round £5,000 on an average car, say in the £25-£50k bracket?
