What is a fair dealer profit on a used car?

On average, how much do dealers make on used cars? The National Automobile Dealers Association (NADA) reports that the average gross profit for a used car is $2,337. That same data set puts the average gross profit for new cars at $1,959.

How do I find out the wholesale value of my car?

The wholesale price is determined by an average of the auction selling price and is adjusted on a regular basis and is the raw information on which used car prices are set.

Is Kelley Blue Book wholesale or retail?

Kelley Blue Book receives real-world used car prices on a daily basis from wholesale auctions, independent and franchised dealers, rental fleets, auto manufacturers, lessors, and private party transactions.

What is the average profit margin for a used car?

Used vehicle margins have been stronger than new vehicle margins. That remains to be true. Gross profit margin for the average dealership through the first half of 2021 was 13.4\%, up from 11.8\% through 1H20.

What is the wholesale price of a vehicle?

The wholesale value of a vehicle is the value that a dealer would pay to purchase it from a car manufacturer. In the case of trade-in vehicles, the wholesale price might also be the price a dealer would pay to purchase the vehicle from a dealer auction.

What’s the difference between wholesale and retail car prices?

Wholesale Value vs. Wholesale value is what a vehicle is worth at auction, while trade-in value is what a dealer is willing to pay for a used car — typically more flexible and usually less than the wholesale value.

What is auto wholesale?

The wholesale value of a vehicle is the value that a dealer would pay to purchase it from a car manufacturer. In the case of trade-in vehicles, the wholesale price might also be the price a dealer would pay to purchase the vehicle from a dealer auction. In any case, wholesale value is a measure of dealer cost.

What is typical listing price?

What is Typical Listing Price? Formerly known as Suggested Retail Price, the Kelley Blue Book Typical Listing Price is representative of dealers’ asking prices. The final sale price will likely be less depending on the vehicle’s actual condition, popularity, type of warranty offered and local market conditions.

What percentage of asking price should I offer on a used car?

Based on your pricing homework, you should have a good idea of how much you’re willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you’re negotiating with responds.

In the case of trade-in vehicles, the wholesale price might also be the price a dealer would pay to purchase the vehicle from a dealer auction. In any case, wholesale value is a measure of dealer cost. There are several factors that can determine the wholesale value of a vehicle:

How do car dealers set prices on used cars?

Car dealers use the Kelley Blue Book to set their retail prices. Edmunds also has a free car appraisal tool that helps you calculate what the retail price for a used vehicle should be. And there are even more guides: Dealers also use NADAguides and the Black Book to evaluate used cars and potential trade-ins.

How do I find out how much my car is worth?

Ask Dealers for a printout of the MMR (or whatever they call it at the auctions used by the Dealer). Although it’s not perfect, it’s probably the strongest indicator of value available. Some will give it to you. Some will not. Visit sites such as AutoTrader and Cars.com and check the Dealer prices for your vehicle.

How do dealers evaluate used cars?

Edmunds also has a free car appraisal tool that helps you calculate what the retail price for a used vehicle should be. And there are even more guides: Dealers also use NADAguides and the Black Book to evaluate used cars and potential trade-ins.