Whats the average profit a car dealer makes on a used car how about new?

Answer 1

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.