curious about pricing

to answer your question, the rebate comes from the manufacturer, so yes, the dealer is not losing anything. They can discount the car additionally or show the discount as extra trade value if you are trading. It is NOT true that the dealer buys the new cars at auction- they buy directly from the manufacturer, so they all pay the same for the car- that being said, there are other costs involved such as advertising, that can make a diffierence in the price from dealer to dealer- typical advertising can be from .5% to 2.5 % of the cars sticker price minus destination charge. That is what pays for all the car ads you see on TV. New cars do not have 6000 of markup unless you are talking a very expensive import (mercedes, etc.) it has gotten so competitive that some models have only 300-400 of room to play with. As a general rule, the more expensive the car and the more options, the more markup there is. I hope this helps.

ok......that was helpful thank you