Secrets of Car Dealers!

I use to be one and I'm going to let you in on a couple little SECRETS.

The average New Car Profit for a dealer is around $800.00

The average Used Car Profit is around $2,000.00

That's just an average. Most dealers make a lot more than that. A lot of dealers can make $3,000 - $5,000 a car. New car profit is lower because of the information avaliable on the internet, such as invoice pricing. Used car profit is higher because the public has no idea how much the paid for the car.

Another source for big profits is in the finance department. Their main goal is to sell you extendedwarranties, which can cost you thousands. Don't get me wrong extended warranties are not a bad idea. Just be aware that if you want one and you act like you don't your probably going to get a much better deal. These warranties a lot of only cost about half of what they will sell them to you for!!!A majority of Finance Managers make well into the six figures.

Ever wonder why you see weird prices on cars, such as $19,991. The key is in the last number 1. The 1 typically means they have had it for 1 week, if there were a 2 it would mean 2 weeks and so on. Most dealers only like to keep their inventory for 60-90 days, some much less than. So, if you see a car with a 8 or 9 know you probably have a lot more toying with price rather than a 1.