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A fair profit margin on a used car is up to five hundred dollars above the base price. You can look in Kelley blue book for the private and dealer price.
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∙ 9y ago
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Why would a new car dealership be less affordable than a dealership that sells used cars?
There are a number of reasons why a new car dealership may be less affordable than a dealership that sells used cars. The most obvious reason is that the perceived value and quality of a new car is greater than that of a used car. There may also be other reasons such as they want a higher profit margin or they may pay their employees more.
Whats the average profit a car dealer makes on a used car how about new?
12+ years in car sales mangement, profit is all in the hands of the dealership. The last true purchase you the consumer can negociate. Get educated, be prepared and walk away with a fair deal. In my experience; in this area of the country, $5,500 mark up on a used car would be considered a nice profit, more or less depending on circumtances. New cars are different, there are many things to consider....floorplan interest, interest rates, trades or lease returns, loyalty programs, factory incentives, end-of model incentives, certain options, availability; all of these factors will determine what the profit margin will be. On average, $2,200- $1,500 would be expected. Just remember not only does a dealership make a profit on the car your purchasing, they also may make money in the finance office, and or with add ons to your contract.(life/disability insurance, bump interest rates, offer maintaince programs, sealant protection, etc., etc., etc......) Again, GET EDUCATED about buying a car.
What type of profit margin does a used car dealer earn on each sale?
charging a commission on each share of stock that he or she buys or sells for a customerHow does a modern day car dealer really make money? - http://www.motor-trade-insider.com/index.php/2008/06/how-does-a-modern-day-car-dealer-really-make-money/
What is the pecent that dealers are often willing to bargain between on their profit margin?
Dealers can actually sell the car at cost and still make a profit. They get a kickback from the manufacture based on the number of cars sold in a year.Dealers can actually sell the car at cost and still make a profit. They get a kickback from the manufacture based on the number of cars sold in a year.
How much does a Honda car salesman make?
About $100 a car or 30% of the profit off of the used cars.
What is a Used car salesman commission standard?
20-25% of payable gross profit
Can you make a profit on a repossessed car?
Yes you can make profit on the car if you buy it from the bank.
Where can I compare used car values online?
To check the value of your car and to compare it to others I recommend using Kelly blue book as it offers a fair value and it takes into account all aspects of the car for a fair appraisal.
Is there a limit on the number of used cars you can sell without requiring an okla dealer's license?
If you buy and sell even 1 car for profit you need a dealers license. If you are selling a car and are not selling it for profit you do not need a dealers license. In essence this means if you sell your own car you will not make a profit so you do not need a license.
What is the salary of a Used Car Manager at a car dealership?
most used car managers are commission from either gross generated after all transactions are complete at the end of the month or a percentage of NET profit after the month is closed.
How many used cars can you sell without a license in KY?
Legally, in Ky if you sell even 1 car for profit you are considered a dealer and need a license. In other words if you buy a car and are doing so for the express purpose of selling it for profit you are a dealer. If you were to sell a car you had owned for awhile and made a profit on the sale then you are not a dealer. It is all about intent.
What Is the general Journal Entry to Record investment car in the business?
In accordance with International Financial Reporting Standards (IFRS) investement property is, in short, property held for capital appreciation or rental income. In accordance with this standard the property is initially measured at cost and subsequently at fair value, remeasured through profit and loss (I have assumed that you have not taken the election to measure the vehicle under the cost model). The journal entry would therfore be Dr Inverstement Car Cr Bank/Accounts payable Subsequent changes to the fair value are measured through Profit and Loss being: Dr Fair Value Loss (P/L) Cr Investement Car Loss on Fair Value adjustment for a decrease Or: Dr Investement Car Cr Fair Value Income Gain on fair value adjustment increase in value This is in contrast to any other asset held as Property, Plant and Equipment as, most noticably, the asset is not depreciated (assumed elected fair value model elected) and any increases in value are not recognised in Other Comprihensive Income but in Profit and Loss.
