How much are dealers making on a new and used car sale?

[Pir8 97]

Ha! I just went through the same thing this weekend. My salesman told me that they cut the price of the car so much that he won't get any commission. The only way he can make anything on the sale is if I give him all 5s on the VW survey. Not sure how much truth there is in that, but it was a good experience so he'll get his 5s.

[aar0n.]

Dealers usually pay invoice price which is less than sticker but not anything crazy like 30% of the sticker price. Edmunds.com usually lists the invoice prices for cars and dealers usually pay around that much for the cars from my understanding of it

[Mr Rukas]

As far as the dealerships I've worked for, the "sticker price" isn't what they bought it for.
Where they make most of there money is with the used cars.
Bring in cheap, sell them expensive.
Seen them buy a car for $1,500 and turn around and sell it for $5,000.
No certain percentage mark up, they just put what they think they can get for it.

[firelizard]

There are two ways they make money- there's the markup on the actual price of the car, then there is back-end gross, which is your financing, warranty, accessories, protection packages etc.

The lowest price they will sell it for depends on how much they think they can make. However, I can assure you there there is nowhere near 30% markup on new cars.

[kramerbuccs24]

It is on a car by car and deal to deal basis, I can tell you right now that no one is making close to 30% on new cars unless it's a GTR, ZR1 or any other ultra-high performance and rare car.

[Slinger]

Here in Holland, they only have about 10% on the new cars, as said before car dealerships make money on Used cars and your financing, warranty, accessories, protection packages etc.

I don't know how it's in the states but most dealerships have some kind of contract with a bankcompany and they'll earn their commission on the finance plans they sell. Which could really add up.

[static-psi]

I am a dealer in PA. To buy cars at the sale is crazy right now and you have to pay up, Most dealers are not wholesaling cars unless its a ture turd "painted up ex" Plus carfax has made the car business a mess I rely on trades. People think oh the car has a clean car fax it must be a good car.. So now when ever I always check to see if it is clean or not then I really look over the car for paint work problems and ex. On top of this buying issue many people from Russia are coming to manheim for the sale and can pay even more then I can due to exchange rates. So unless your in a big metropolitan area and you found the car you want that dealer may only have a $1500 mark up.. Thats small. Think about it.. Advertising cost us about $2500 a month alone plus other cost to stay in business.. Many metropolitan/big city areas tend to buy beat up painted up cars.. They can charge more and don't care if you ever come back due to having so many other people around.. Now that does not go for all those dealers but its common.

[jmotley]

As far as the dealerships I've worked for, the "sticker price" isn't what they bought it for.
Where they make most of there money is with the used cars.
Bring in cheap, sell them expensive.
Seen them buy a car for $1,500 and turn around and sell it for $5,000.
No certain percentage mark up, they just put what they think they can get for it.

^ this, my dad's a dealer and i "work" for him in the summer. its all about which person comes and wants to buy it. btw, if you have cash you can knock the price down a couple g's because the dealer can set it up where neither of you have to pay tax.