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Zephyrius
LSU Fan
Collinsville, La.
Member since Dec 2004
5204 posts

Used Car Profit Margins?
Looking to buy a used vehicle about 3-4yrs old... the vehicle we want consistently retails about $17.5k - $18k with 40-60k miles.

I'm just wondering what the profit margins are for a vehicle with that price tag so I can make a reasonable offer that they will consider/ accept.

Our current budget for a used vehicle is 15k cash so wanting to get as close to that as possible.



oldcharlie8
LA-Lafayette Fan
Baton Rouge
Member since Dec 2012
6227 posts

re: Used Car Profit Margins?
usually they will start at about a 2500.00 mark up. however, never tell them that you are paying cash. that is the wrong thing to do nowadays.


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41
notsince98
Missouri Fan
KC, MO
Member since Oct 2012
8827 posts

re: 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.


Mossive
Member since Nov 2016
358 posts

re: Used Car Profit Margins?
quote:

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



It's 2200, my company has done business with them in the past. but they dont typically negotiate off that.


Zephyrius
LSU Fan
Collinsville, La.
Member since Dec 2004
5204 posts

re: Used Car Profit Margins?
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.


CoachRobertson
LSU Fan
Denham Springs
Member since Dec 2014
364 posts

re: Used Car Profit Margins?
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).



Zephyrius
LSU Fan
Collinsville, La.
Member since Dec 2004
5204 posts

re: Used Car Profit Margins?
email sent... hope it was Gmail- lol


OceanMan
LSU Fan
Member since Mar 2010
10789 posts

re: Used Car Profit Margins?
Look at the NADA trade in value, not retail value, and start from there


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11
CoachRobertson
LSU Fan
Denham Springs
Member since Dec 2014
364 posts

re: Used Car Profit Margins?
Y2kferari1@yahoo.com


basiletiger
LSU Fan
lafayette, la.
Member since Aug 2007
1396 posts

re: Used Car Profit Margins?
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.


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