Overhaulin'

At what price do car dealers buy cars at?

Let's say a dealer's selling a car at $50,000. At what price would the dealer have bought it?

Public Comments

1. on average it depends on whether it is a new or used car. Used car dealers use a sliding scale based off of how long the car has sat on the lot, etc. They start with a 3000 profit on a 10k car going to maybe a 15k profit on your 50k car. vehicles tend to depreciate fast and when you pay for a used car, the depreciation becomes dealer profit all discounts on used cars come from the dealership. New car dealers generally only make 1-3k on a new car because the manufacturer tellls them what they are buying them for and what they are selling them for, all discounts recieved on a new car comes from the manufacturer.
2. That is very hard to say. Dealers buy their vehicles from dealer and police auctions. So they get there cars at a small fraction of what they sell them for, but there is not a set amount that they mark them up to. I buy my cars from the same police auctions that dealerships buy theirs from, www. YourAuctionPass .com. Take a look at it and you will see what they buy them at.
3. It depends on the make,model, year and condition of the vehicle. Also if the car is a used car did they get it in on trade or wholesale auction. Most of the time if it is a new vehicle it depends on if the car has bells and whistles on it, but for the most part the mark up on new cars isn't that much to what they sell it for usally anywhere around 5to10 k.
4. There is no set price, it changes from car ot car. The rule of thumb is that they get them for wholesale. Many of them get into cars for less than wholesale. They sell them anywhere from $1000 to $10,000 above wholesale. If you can get into a car for a $1000 above wholesale, you are doing good. Get the www.kbb.com value, even if you have to sit on the phone with a friend at the dealership and go over every option to get the wholesale price. The dealer will give you www.kbb.com retail price, you want to work with wholesale. Negotiate wholesale/wholesale or retail/retail. Stay away from the shabby dealerships. Stick to the large corporations.