How Much Does a Car Dealer Make on the Sale of a New Car?
A common misconception about new car dealers it that they are out to make a quick buck, getting the best of you during the negotiation process and eventually overcharging you for a new vehicle. The truth, however, is that most dealers just want to satisfy their customers rather than gouge them. Believe it or not, dealers actually make very little profit on a new car sale (usually under 8.7 per cent of the vehicle’s invoice price goes to the dealer) while the bulk of your hard-earned money goes directly to the manufacturer. To learn exactly how much a dealer is making on your new car, customers can consider obtaining a vehicle cost report (available for free from Unhaggle.com) which also provides you with a breakdown of fees, finance and lease rates as well as any additional incentives available in your area.