Main dealer margins

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Tue 9 Jul 2013 20:44
Main dealer margins - privateinvestor

Just out of curiosity what sort of profit margin will a main dealer typically price over trade price. My own view is that it would approximate to around 10-15% of sticker price. I am curretly looking to buy a Toyota Auris Hybrid, and prices vary amongst dealers quite a lot. What sort of experience do peole have of negotiation and price reductions acheived?

Thanks

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Tue 9 Jul 2013 21:02
Main dealer margins - RT

It's more complicated that just a straight %.

Typically, they get around 8% basic margin but that'll vary by model and they'll also get performance incentives and promotion incentives.

If you're negotiating to buy, then use online broker prices as a target and see how close you can get.

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Tue 9 Jul 2013 21:34
Main dealer margins - privateinvestor

Sorry I forgot to mention I was looking at buying used, but you are correct with respect to new car prices and internet brokers.

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Tue 9 Jul 2013 21:53
Main dealer margins - RT

Dealers are negotiators just like buyers, they naturally will want the best price they can get - so there's no "right" price for a used vehicle - just a price acceptable to both sides.

Just how that "acceptable price" relates to asking price is an unknown mystery!

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Tue 9 Jul 2013 23:21
Main dealer margins - daveyK_UK

When working with new cars it varied from cash incentives for certain models and specs to volume with other models and specs.

The volume bonuses where very lucrative, epsecially when hyundai was still the cheap budget vehicle from the far east.

I do know of a Renault dealer who is appauled at the incentive difference between the dacia brand and renault.

He practically quadruples his bonus on clio compared to a sandero.

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