Dealer Profit Percentage on a Used Car--How Much in metro areas?
If Edmunds is correct, and apparently they might be because they have nailed the metro area dealer retail price on 2 older used cars I was looking at (approx $11K sale price), based on what it's reasonable to believe that this dealer paid for each car, I have computed their profit margin at about 40%....because it's older used cars, that translates into a few thousand bucks. I know they have to earn a profit, have to pay the salesman about 30% of the profit, but if I open negotiations with them earning a 10% profit, (several hundred dollars), it's a bad faith deal killer probably. Aside from getting as much profit as possible, what's the business metric on their end for any used car....no less than 20%? ....or is it a minimum dollar amount, when dealing with smaller numbers such as these?