The average car dealer markup fee is typically between 2-5%. This number represents the amount of money the dealer automatically raises the price to ensure a profit. Note that this is not the final sale price, which is often higher. For example: a car comes in at dealer invoice (what the dealer pays for it) of $20,000. The dealer marks it up 2-5% (this is their listed invoice price) and then assigns an MSRP price on it that is even higher. Should you negotiate the dealer down to invoice, they still make a 2-5% profit on the vehicle.
January 27, 2012
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