car dealer profit?

Question

How much profit does a car dealer make on a used car, I recently bought a car for 5500 that was priced at 7500 less than a year ago, I put less than 8000 miles on and I asked what would be the price if I traded it in and they said 1800 are they just cheaters

its a 97 honda odyssey with 130000 miles on it

Answer 1

Dealers make as much profit per vehicle as the market allows - determined by such factors as supply and demand, overhead and expenses, and the knowledge of the buyer. Car dealers are in business to make a profit - they aren't there to sell vehicles for what they paid for them. Do you think that when you buy a gallon of milk for $3 the grocer paid that much??? Did the farmer get $3 for that gallon? If grocers made the same profit margin as car dealers, we would see milk at $1 a gallon. Nobody calls the grocers crooks because they make a profit!

Bottom line is this - there are dealers out there who have a conscience and like to sleep at night. Buy from them. I know people who buy from the biggest crooks in town, KNOWING they are going to get screwed cause all thier friends did, and they act like they don't have a choice! Give your business to someone who deserves it, who will treat you fairly and ethically. Do your homework first!

BTW - I am a dealer, and I hope to see an average of $1200 profit per used vehicle I sell. I am small, so I average 8 vehicle sales each month. At that average, I barely pay the overhead and put food on the table.

Answer 2

Well most dealers have IA account which usually runs a $1000.00 then the average shop bill is $800 per car and the average profit is usually around $1500 so that is a total of $3300 over of the wholesale price. IA account covers advertising, depreciating cars on lot and other expenses. So when they trade for your car they will have 1800+1000+800 in your car or about $3600.00

Answer 3

When a dealer sells a car, they do so at the retail price or higher...when they take a car in as a trade, they usually only give you a wholesale price for it which can be thousands less. That is how they make their profit and a living. Best to check websites like KBB.com or Edmunds.com for various pricing structure on a particular car. Lots of people sell their cars by themselves to keep that profit or at least some of it.

Answer 4

sellers make extensive income from previous vehicles as they purchase it from action at a dirt inexpensive fee. So, while they refurbished the vehicles, they might get an excellent earnings. some sellers are nonetheless good and attempting to place fee collectively as offering the customers. you are able to verify the used vehicles denver sellers for greater information.