what does a car dealer mark up vehicles?

Answer 1

new car dealers will mark cars up some, this will be on a little sticker next to the big window sticker, most new car dealers will sell cars for below suggested retail, used car dealers will buy cars below wholesale and try to sell them at retail, i know of used dealers making $5000 on one car. car lots can't stay in business if they only make $300 on a car deal, the lease on most lots is over $3000 a month, so only making enough money to stay in business will require good profit on each car or low profit and high volume

Answer 2

What ever the traffic will bare. One one vehicles he may lose money and make it up on another one. A little depends on if you are talking about a new or used dealer. A used car dealer will hunt the best auction deals and can make a little more and a new car dealer is somewhat locked in on the buying price and needs to hold on his selling price. But sometimes a new dealer will have a car too long for the investment and need to move it off the lot at any price.

Most of them on a quick sale will maybe make $100 on a car but that is not a happy amount. $300 to $500 gives them a profit to pay the salesman. And any amount over that goes to the rent. So it pays to look around and be flexible. When you lock in one car you want then you don't have any flexibility.

I'll bet you thought they were makes thousands on every vehicle??

Answer 3

Profit margins on automobile sales are surprisingly low. A new car dealer may mark up a car by less than two percent over the manufacturer's invoice cost, and typically the car dealer borrows from the manufacturer for inventory and pays interest (called flooring or floorplaning).

On the other hand, some manufacturers pay "hold-back" to improve the fiscal stability of dealers. Typically this is around 1% to 2% of the vehicles' wholesale price to the dealer.

Hold-back is usually not a negotiable part of the price a consumer would pay for the vehicle. Hold back is designed to offset the cost the new car dealer has for paying interest on the money s/he is borrowing to keep the car in inventory.

Answer 4

The reason car dealerships mark up cars in price is because they have to sell the car the amount they paid for plus what they want or expect to make from it and any money that was spent to fix or better the car.

Answer 5

For new cars, you can find the MSRP, invoice, and "True Market Value" (average amount people are paying) for any make or model at edmunds.com. Everyone should get this information before buying a car.

Answer 6

Anything and everything they can!