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.

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.

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I love the answers stating: How much they can screw you over…..Anyway, the car business, is simply that, a business. All in all, the automotive industry has some of the lowest markups on products. Where a TV may be marked up 50 percent, a car is generally only 6 to 10 percent. A little more depending on make. The sales person is generally always paid on the amount made over what the car is owned for. Commission percentages range from dealer to dealer. In some cases, salesmen aren’t paid a salary. Some others work on a draw structure, where they are paid a wage, but once a commission is made, the amount paid is deducted from that commission.

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