Unveiling Car Dealer Profits: How Much Do Car Dealers Make on a Car?

Buying a car can feel like navigating a maze, and selling one isn’t always a walk in the park either. With over four decades in the automotive industry, I’ve seen firsthand that both sides of a car deal – buyer and seller – often face their own set of challenges. A major reason for this friction is information asymmetry; car dealers typically possess more knowledge than the average buyer, sometimes leading to mistrust and the feeling of not getting the best deal.

At cars.edu.vn, our mission is to empower car buyers with the information they need to confidently navigate this complex process. Today, I want to shed light on a common question: “How Much Do Car Dealers Make On A Car?” Specifically, we’ll explore estimated profit margins for new cars across various brands. It’s important to remember that these are educated estimations based on my experience and industry knowledge, not definitive facts. While my 43-year career has exposed me to numerous original equipment manufacturers (OEMs), these figures represent my best understanding of the general landscape.

Profitability isn’t uniform across the board; it varies not only by car manufacturer but also by specific models within a brand’s lineup. For instance, a base model sedan will likely have a different profit margin built into its Manufacturer’s Suggested Retail Price (MSRP) compared to a high-performance SUV from the same brand. As a general guideline, it’s reasonable to assume that brands like Mercedes-Benz incorporate around eight percent profit into their MSRP on average.

To provide a clearer picture, consider the estimated profit margins by brand in the table below. This information should serve as a helpful starting point in your car buying journey. If you have insider knowledge from working at a dealership or OEM and can offer more precise figures, please share in the comments! This is intended to be a dynamic resource, and your input can help us refine these estimates. Ultimately, the most direct way to understand a dealer’s profit on a specific car is to engage in open communication and ask them directly.

For car buyers looking for an edge in negotiations, our FREE Market Price Report is an invaluable tool. It provides a suggested offer price, giving you a solid foundation for discussions with dealerships and helping ensure you get a fair price.

Here’s a brand-by-brand look at estimated dealer profit margins on new car sales:

Understanding how much car dealers potentially make is a crucial piece of the car buying puzzle. While the table above offers estimated figures to guide you, remember that transparency and informed negotiation are your best allies in securing a favorable deal. Utilize resources like our free Market Price Report to empower yourself with knowledge and approach your next car purchase with confidence.