How much profit does an autodealer make on a new car sale??

Question

How much profit does an autodealer make on a new car sale??

Answer 1

On an average it is about 5 to 10 percent of what it buys the car for. MSRP is what the Manufacturer wants to sell the car for. You should never pay MSRP always negotiate.

Answer 2

A lot less than the general public imagines!

Answer 3

Above his invoice he has lot fees and commissions to pay.  New cars today don't have the mark up they use to have.

Even if they sell at invoice or under in some cases, they still get a factory rebate on each car sold quarterly.

Remember just because someone else pays sticker doesn't mean you have to so profits vary.

Never feel bad about making a really good deal on a car or how much the salesman cries no commission.  They all make money in the long run and stab them deep if you can.  It's all part of the game.