Used Car Profit Margins?

Used car sales make much more profit than new. I have a bit exposure to the sales side of the transactions and their profit margins range from $3k to as high as $10k depending on make an models.

Carmax seems to be the exception to this. Their margins appear to be more in the $1-2k range.

Carmax seems to be about 1k or 2k more than going directly to a dealership site for the same model/ mileage vehicle... but then Carmax is offering "free" shipping.

I'm willing to fly to a Houston/ Dallas/ Atlanta to get the vehicle.

What you looking for? Email me(under my profile) and Ill see what I can find.

To answer your question, obvious dealers start at retail price, most discount after 20-30 days being on lot then continue to discount until sold (2 of the 4 dealers I have worked for have a 65 day turnover program). But margins vary from cost (amount of $ in vehicle) to $2500-3k above, the days of having $6k plus markup are over (especially since banks finance off trade value, not retail value).

Look at the NADA trade in value, not retail value, and start from there

the market is your friend. The internet is your friend. Do your research and good luck; Most dealers will work with you. Unless it's a highly desired vehicle that hasn't been on the lot long.