How much are new cars marked up from dealerships?
Posted by admin
PlasticTrees asked:
My boyfriend works at one and I’m just wondering (he’s not too sure, he just takes the $ they give him). **Dealerships have their markups but used cars are a much better profit because he gets around 40% comm**. So with new cars the dealership buys them from Dodge etc, and resells them an barely makes $. How much do you think they mark it up?
My boyfriend works at one and I’m just wondering (he’s not too sure, he just takes the $ they give him). **Dealerships have their markups but used cars are a much better profit because he gets around 40% comm**. So with new cars the dealership buys them from Dodge etc, and resells them an barely makes $. How much do you think they mark it up?
My boyfriend makes 20% regardless and I’m just wondering if anyone knows the appx markup value to the MSRP.
PHYLISS
January 27th, 2008 at 3:56 pm
They mark em up by $5000 or $6000, depending on the price of the car.
January 28th, 2008 at 9:53 pm
Mark-ups are different depending on the company. A general rule of thumb is 12-15% This can vary alot. edmunds.com has invoice prices for new cars – but make sure to include every equipment package and option before he accuses his work of screwing him! Some vehicles by the way have VERY SMALL profit margins so even if he sells those at full price, there isn’t much in it for him. Most base model entry level cars and light trucks fall in this category.
January 31st, 2008 at 4:54 am
Depends on the dealership. The dealership I work at has some of its cars with 50% to 60% markups.
February 2nd, 2008 at 10:47 am
Go to consumerguide.com and you can drill down to any model car to see not only the MSRP, but the dealer invoice price as well. Be aware that in many cases, dealers may also earn incentives if they reach certain sales targets.