Dealer's Margin UK/US - Mark (Brazil)
Gosh I have a lot of questions today...

When shopping for a new car in the US, it is usual to access the appropriate manufactur's website and discover the trade invoice price for the car you will buy.

Then to take this along to the dealer as the basis for negotiation.

It would then be fairly normal for a dealer to take something like a $200 profit on a $20,000 car, and some determined buyers in the US will insist the dealer proves the figures.

Now, I am sure that the dealers get special discounts over and above the trade invoice price, and of coure the various shenanigans you can get up to with finance, but nonetheless, this seems extremely low for a profit.

Are profit margins similar in the UK ? (for the dealer on new cars, I mean).

No wonder they want to service it, insure it, finance it etc.

On another point, it would be unheard of in the US to wait for delivery of a car. Even when finance is required most people would expect to take thier car home with them as soon as they've chosen it.

If I remember the UK, for a truly new car, it was more a question of days if not weeks.

M.
 

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