How do car dealers make profit on leases?

So Ford have a Fiesta that supposedly costs a recommended price of £14540. They ask £178 a month and 3 months upfront = 6764. So they take the car back at the end. The car has depreciated by %60 say after 3 years of lease. So it is now worth to Ford to sell on: £5816. So they lose £8724 in depreciation. How is it that I read dealers prefer to lease as they make more money? It looks like a big loss to me, as they have to front the depreciation and in this case arent charging enough to cover it?

Well first off most cars don't depreciate at 60%, its more around 40%, so its still worth 60% of the original value. Even its its only worth 8724, dealers don't ask what its worth they ask more, typically around 110 to 120%, because they are a dealership and they can. Plus the lease has All KINDS of penalties. Anything wrong with the car when they take it back costs you extra. Chips/scratches/dents/excessive wear, every mile over your contract (say 3 years/30000 miles) costs you extra. You also have to go to the dealership between 2 and four times a year to do the routine maintenance (which they overcharge you). If you don't you pay a penalty on that as well. All the small fine print in the contract is where they make a lot of their money.

Dealers simply sell the car to the finance company.
Any marks are charged extra. Any excess mileage is charged extra.

I was thinking as Ford leasing with Ford Lease, their own financing company, does Ford still sell to them, or just give their own cars at cost value (say it costs Ford £9000 to make the car) But still lease it as 14540 rrp? Also I get the damage bit, but that also lowers the price that Ford can get for the car at the end? I guess they overcharge though to cover that and more right?

Dealers can sell the car for 110% of the MSRP. In most cases, lessees have no idea that teh lease acquisition cost is that high. This is incredible profit for he dealership. The dealership is merely the originator of the lease. A leasing company sets the parameters, residuals and terms. Don't lease, it's horribly expensive.

Dealers make money on the sale of the car. Lenders make money on the lending of money.

Leases are sales, the car is sold to the lender.