How much are new cars marked up from dealerships?
Friday, November 13th, 2009My 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.
