Mark up on new vehcile.

[dodge man]

I used to figure the markup on a new vehicle was about 10%. Now it seems to be about 6%. I don't have any real hard data to back this up. I know you can get the data on line on what sticker price is vs. dealer invoice but I'm just looking for a rough average.

 

[uphill]

I recently bought a 2017 GMC 3500 Denali diesel duality which listed for $70k. I watched online until July when they reduced the price by 9%, evidently to move the 2017s before the 2018s began to arrive. I also received a "customer appreciation offer" from GM for $4000 additional discount. I called the dealer and they said I could only receive $3500 additional discount because the 9% price reduction already included $500 customer discount. So the final sale price was around $59,000 plus tax etc and I'm sure they still made profit at that price.

 

[Streetcar]

Different vehicles have different markups
Small cars are priced cost to cost, trucks have bigger margins

 

[jwstewar]

My sister just bought a Honda HR-V and the salesman was like, we can only move about $800 from sticker. So we talked a little bit more and she had sent me a photo from another lot. So I pulled out my phone and said, OK, here is the same car, they knocked $1300 off the price. She is scheduled to go drive it tomorrow, why should she buy from you tonight? They came back and beat them by about $10. She didn't care for the color of the other one as well, but we sure weren't going to let them know that.

 

[Gary Fowler]

When I bought my wife the Honda CR-V, they also didn't come off the price as much as I thought they should. I guess it has to do with how much they need to move them.

 

[Zick]

Different vehicles have different markups
Small cars are priced cost to cost, trucks have bigger margins

Exactly, I've seen new last yr model trucks with 20-25% off and I'm sure they are still making money on the deal.

 

[dodge man]

The Ford150 I bought about 6 months ago I got 20% off or a little more. It was a left over 2017, of which there was still quite a few of them around at that time. Probably half of that was incentives from Ford. On paper I'm sure they lost money if you look at "invoice". Of course I'm sure they didn't really lose money.

 

[truckdiagnostics]

I use 13-17% if it has a lot of option use the 17% you are correct on the 10% but you are forgetting hold back. The domestics have it. It doesn't show up on the invoice when they show you what"they paid for it" it is basically a 3% kick back. Also, if the vehicle has been sitting on there lot longer keep in mind they are going to have more interest being cared over on to that vehicle. I have had better luck with getting vehicle at invoice if I order them. Then when they tell me they can't do that because they aren't making anything, I tell them they are making the, "hold back" and what the OEM will pay for dealer prep. And all he has to do if hit a couple of keys on that key board and he is making money for 1/2 hours work. I make sure I know exactly what I want and what I am going to pay before I walk in, so that I use very little of his time.
next thing they will try and you to pay for his doing, "there paper work" which I refuse to pay for. Walk out on a deal. 2 hours latter they called me back and said they would wave it.
someone did post that smaller cost effective cars do not have the mark up. I believe he is correct. once you add the options that changes.

 

[timswi]

Bought a new 2016 GMC Sierra SLT All-Terrain X in Jan 17... Sticker was 55k bought it for 42.7 and I bet they still made money on it.