Find Seized Car Auctions Near You

Know Where To Buy Your Dream Car For A Low Price!

Whether It Is A Mercedes, BMW, Honda, SUVs, Trucks...

Drive Your Dream Car For 90% Below Retail Prices!

Start Looking For Your Dream Car Now!

I’ve heard of some auto dealers that buy their cars at dealer only auctions. I was just wondering what the average price is that they pay for their vehicles. For instance, how much might they pay for a car that they plan on marking at their shop for ,000? What is a used dealers profit margin typically?

3 Comments »

1. 

   It can vary from car to car and how hot the car is at the time.

   Most Franchise dealers (big dealers that sell New and Used) have an average markup on used cars from cost to Top asking price of around $3000.

   However, you must remember that as the car ages on the lot there will often be price cuts. Also if something comes up and it needs to be fixed (and added to the cost) the price is not going to be raised, there’s just going to be less mark up.

   Also, often times, the car didn’t come from the auction, but was a trade in…sometimes the dealer has to step up and put more in the trade than they should, to put a deal together. then you will probably have less mark up on the car too.

   Also there’s only so much you can ask (if the dealer isn’t an idiot)..which is close to Nada Retail (otherwise no one will call about the car) If you have a car that’s hot at the time and is bringing more at the auction, there won’t be as much room for mark up.

   there you go…..that’s just a small sample of the nuances of pricing cars on the lot. Some people think it’s simple and all dealers are crooks. it’s just not the case. We rarely have a situation where everything falls into place when we "pay the right amount for the car" and it sells fast before we mark it down AND the customer pays asking price. So $3000 may seem like alot put we rarely get that much…average for a big dealer on used cars is around $1500 a car…that’s AFTER all of the above.

   Comment by just call me Buzz — February 20, 2011 @ 9:37 pm

2. 

   My markup is usually $500-$1000, but a lot of the buy here pay here lots will make a lot more. Can’t give you a specific number because it depends on what the dealer paid and how much he wants to make.

   Comment by David G — February 20, 2011 @ 9:37 pm

3. 

   You got me… Good Luck, cheers http://smarterdeals.info/7012/auto-dealers

   Comment by ciraolo brumitt — February 20, 2011 @ 9:37 pm

RSS feed for comments on this post. TrackBack URL

Leave a comment

Name (required)

Mail (will not be published) (required)

Website