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A car dealership is a business like any other and therefore they must make a profit. What do you think is fair. New or used.

2007-07-09 10:32:37 · 6 answers · asked by Tom S 5 in Cars & Transportation Buying & Selling

6 answers

Honestly, whatever they can get. Some people are better negotiatiors than others and the dealer will win some, break even on some and lose a few.

2007-07-09 11:31:38 · answer #1 · answered by Anonymous · 1 0

As a Business Mgr for a Car Dealership, it's not what other people think is a fair profit, it's what YOU think is a fair profit. What a fair deal or profit for one person may not be for another, don't let someone influnce you, friends, or the car dealer.

2007-07-09 10:42:47 · answer #2 · answered by ANTHONY C 1 · 1 0

OK let me explain something to you the delaer ship has cost that are not available to the sales man !

They have huge rebates given back to them from the comapny and the banks

THE sales Man only gets his commmison on the sale price above the COST !

That is also called the tisssue price

BTW i sold cars up till 1980 for 6 years

ThE sales person gets a 25% commison or 40% on the sale price above the Cost

The Manager gets a flat commison from the whole floor plus his salary

so if a car list for $18,000 and you get the max discount of $1500 i think it is today the salesperson only gets $25 or $40 for making the sale

this is on NEW and USED cars

but their is MORE profit in USED cars

beacause if it was traded in for book value vs the full reatail price of the new car then the dealrship has 100% Profit

example

say you want $2000 for your trade against the list price of the new car your buying

they look at your trade assign it's value and if your trade is worth $2000 yu get $2000 off and your trade with minimal cost can be resold for $2500 and the Dealer ship just made a whopping $5000 profit from you

If Your Trade is only worth $1200 now the dealer ship has to give $800 off from the cost of the new car to make you happy

so now the dealr makes $800 less reselling your trade

BUT many of todays Car buyers are very savvy and will go to where there is a many dealerships within a mile

and just shop until they get the lowest price on the car they want

problem is differnt cars have way differnt prices with the same accesories

YOU cannot Match a Plymouth's Price with a Chevrolet Model of same size

or Ford to compare with Pontiac

or Buick to Compare with Chrysler

This where the salespeople have trouble making sales because many people do not shop apples with apples

They Go price an Apple at One dealer

then Next Dealer they are pricing a Pinapple

so if YOUR Buying a NEW car shop the same Manufacturer at fiffernt Dealer ships

a fair Profit for anay dealer to a sales person would be $500 above the Cost

of course some cars their is no discount

like Corvettes beacuse of their holding value they do not depriciate if kept in A -1 condition they are worth more 5 years later if you sell them

The Imports have very little room to work with for discounts YOU cannot get $1000 discount on a standard toyoto becuse it's not there to give away

welll thats all i have for you !

E mail me for a tip to make sure you have a trouble free car for life of your car NEW Or USED !

FREE advice ! Tuaght to me back in late 70's from an old pro !

2007-07-09 11:39:54 · answer #3 · answered by Bill F 2 · 0 1

Fairness should not enter into it. The dealer wants to get as much as they can, and the customer wants to pay as little as possible. Neither wants to be fair. Its just business.

When you are buying from / selling to a family member. Thats when things get tricky.

2007-07-09 11:01:04 · answer #4 · answered by jimanddottaylor 7 · 1 0

5% of MSRP is fair for both the dealer and the customer, except on highly desirable cars, then it's more.

2007-07-09 12:41:52 · answer #5 · answered by jay 7 · 0 1

i think 2000 is fair either for new or used

2007-07-09 10:38:08 · answer #6 · answered by Matahari 5 · 1 0

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