What does the Car Dealer pay?

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C

Cardinal Fang

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Feb 14, 2002
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A friend of mine is in the market for a new car and wanted to know just how much a dealer pays for the car. He was quoted the MSRP on the website and from the dealer but is convinced that there is a built in mark up on the car and wants to know approx what that markup is.

I thought this was discussed before so I did a search and found some interesting information including the history of the Internet, some SC named Fantasia and Shiek's breast augmentation surgery. But nothing on the Dealer's price on cars.

Does anyone have any information on where I can find the "dealer invoice price?"
 
Meesh

Meesh

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Jun 3, 2002
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The 'invoice price' is essentially meaningless.

Many dealers advertise that they sell for some small figure above the invoice.

However, the dealers and manufacturers also have systems of bonuses and rebates that make the invoice price a thing of fiction that can is most often used as a marketing tool.
 
T

The Doctor

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Jun 2, 2003
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I've been told by a somewhat knowledgable source close to the dealer network of one of the Japanese manufacturers, that the mark up is not all that large on the purchase of a new vehicle. The pricing system is less than transparent, as Meesh pointed out.

Supposedly, much of the dealer's profit is a result of the ongoing servicing, and upselling various finishing packages and extended warrantees.

I am however suspicious that the margins are higher than they would lead you to believe having just recently purchased a car and was asked by the salesperson whether I wanted the 5% discount plan or the 10% discount plan. :confused:
 
A

A-ROD

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I don't know what the margins are, but the length of time a car sits on the lot is a killer for them.
The Dealers have to take out loans to buy the cars, interest is due monthly. If you are going to buy do it near the end of the month, they should be more willing to cut prices.
 
R

ruck

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Nov 24, 2004
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On average, new car sales will net the dealership/salesperson an estimated 1k-5k depending on make, model and year.

Most cars fall under the 1-2k markup. Most of the money is made through dealership maintenance. Ever wonder why so many car companies are coming out with "original" parts that you can't find OEM? It's bullshit. They also make the car so hard to work on, only dealerships have proper manuals and such. I have a VW and am lucky enough to have a ex-VW mechanic as a client. He charges me 40/hr while VW will charge me 90/hr. Quite the savings if you ask me. Even he told me that there are certain things that NEED to be done at dealership because the tools are not available to outside persons. he could be just lazy but I tend to believe him.

Anyways, there is not much of a markup. Some sales guys will give you a good deal but you can notice there is quite the "dealership" visit worked into the deal. Used car sales is where it's at.
 
P

papasmerf

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Oct 22, 2002
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all depends on the make and model you seek

Some will have a mark-up of several hundrend dollars. Shome will carry a couple a grand or more. There are ways to purchase a car for less then the dealer paid.
 
J

james t kirk

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Aug 17, 2001
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johndavidsson said:
here's an example of an 'upsell' .I wanted a remote starter on my new 2004 when I leased it. Cost was $ 650.00 installed. It came from an outside dealer.Ford then added their commission on top.
Had I known, I would have gone directly to Campbells and paid somewhat less. Now Ford gets my car back with an additional feature, paid for by me.It adds to their resale value.
Click to expand...
What is Campbell's??
 
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