Car Audio Central - Ultimate Car Audio Forum and Community

Hey guys do you know what a dealer would pay for a 05 Explorer Limited V8? What would they pay for one straight out of the Ford factory? If you dont know a ballpark price, is there a certain % they mark up or anything? Thanks.

Most markup 9-20% on average. Most american automakers are closer to 10%. If you see an additional markup (beside MSRP, usually an orange sticker) get out of that parking lot and go to another dealer. Lots of times it is referred to as "Market Adjustment Fee". It's not the companies fault, but the dealers. Look at MSRP, usually you can pay less than MSRP as well.

When my dad bought his truck, (Toyota Tundra) the salesman said, "Oh, for every one of these we sell, we can get two more". I'm assuming that means they make twice as much on those?

If you are thinking of actually purchasing a new vehicle you should check out consumer reports. They have suggestions on how to purchase, finance, etc. and for like $35 you can get a detailed report with the exact price the dealer pays with all the handling charges and options that are available. My wife used this when negotiating for her new vehicle and she paid about $500 over what it cost the dealer. That means they only made $500 on the sale of a $15,000 car :)

Just something to think about.

Just like the American Banking system. When it is setup the bank can only loan out XXX amount of $.

For every $1 loaned it may loan $8 more and maintain its security under the Federal Insurance deal...

As far as actual dealer price ask to see it. If they say no tell them you will just go to another dealer. Usually they will show you dealer price. Keep in mind Dealer price is not the actual price paid for the vehicle. But it is the price paid and a slight charge (flat or percentage) that is the minimum dealer profit. So that way even if you pay dealer cost the dealer is still making money.

My Grandmother used to work with and is friends with a dealership owner, so I got the inside info...

anybody who pays sticker for a car is an idiot.
you can buy a book at any news stand that tells you exactly what the car costs a dealer, and what each option on the car is worth. you total that up, and add a fair profit. In my opinion, that's about $299 for the bozo sales person's time. Refuse to pay a penny more if you're set on a new car.. although I feel buying a car brand new is foolish too considering the amount it drops in value the moment it rolls off the lot.
I'd rather buy a car a year or two old and spend the difference modifying the car.