How much margin do dealers make on used cars?
The used car market is a lot stronger with profit margins for dealers around 12 to 15 per cent.
Are car dealerships losing money?
According to a report by Automotive News, National Automobile Dealers Association stated that used car dealers in 2018 lost money on operations. This has been the first time in a decade that used car dealers have experienced sales loss.
How much profit is made on a new car?
Front-end gross profit is usually described as the difference between dealer invoice and the selling price. That percentage tends to be somewhere around 20%. If a vehicle was sold with a $1,000 front-end profit, the salesperson would earn somewhere around $200.