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I have a friend, who works for a company here in BC, where the owner of the company also own a huge huge bunch of car dealerships, and offers new vehicles to his staff at cost. Any idea approximately how much markup could be on a new car? I'm pretty sure it probably varies on the car and the market, but if someone has a little bit of an idea, that would be wonderful!
 

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Markup varies on all cars. Many companys are differnt thain others. There are two names for dealar costs, at cost meaning cost of the car to the dealership. And fleet cost, tipicaly slightly heigher thain dealar cost, usualy just cuts out the salesman's salary (not a big difference from at cost, maby $500). Most all cars that sell at "at cost" are actualy selling at fleet pricing because at cost is actualy a loss for the dealar. The dealar is probably selling it at fleet pricing, most any dealar wont sell a car at cost because of their loss, this will differ however, tipicaly at the end of the year when the new models come out the cars are all selling at cost.

Here is a few good estimates of fleet pricing:
Toyota Camery $2500
Toyota Avalon $3000
Mercedes C320 $3000
Mercedes SL500 $8000
Honda Civic $2000
Acura MDX $4000

Most cars are around $3000, some lower, some heigher. Mercedes, BMW is actualy not as marked up as you might think, usualy follows the same scheem, with exception to their $90,000 cars such as the SL500, markup goes up.

Now here is the secret wepond clicky, it is edmunds.com. They offer listings that will tell you the actual invoice costs of cars. Not every car has a listing but most do, when you find a car you want to buy look it up on this site and use the invoice as a price point. You now will know how much the car is costing the dealar so you can use that as a price point for barging.

Good info to know:
Almost all car options are highly marked up, for example a $500 rear spoiler actualy costs them around $150.

Often when a dealar offers cash incentives it comes out of the markup, meaning the dealar is less willing to deal because they are already loosing money.
 
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