Dealer discount?

Honda are offering new cars this month at the dealer invoice price. Today we inquired about a new CRV EX petrol automatic, list price £30,900 with metallic paint. The dealer told us he would offer a discount of about £1,000 that represented their 5% profit. Now I do not believe they only make £1k on their top priced car. But can I please ask what you know about such things please? Thanks - Chris.

Asked on 4 March 2013 by Knight Templar

Answered by Honest John

6% is normal dealer margin these days, supported by bulk discounts and bonuses. So you get the car for the price invoiced to the dealer. But he gets an equivalent amount to the discount he gave you direct from the manufacturer.

Tags: buying

Dear Honest John,

Please help me choose my next car. I would like it to have:

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