THE DEALER'S CUT

you may be asking how much money does a dealer make on a car? Here's a good rule of thumb: the more expensive a car, the more profit is built into it. As a result, you have more leeway for getting a good deal.

So how do you find out what you should allow the dealer for his profit? Below is a realistic guide that you should follow:

CAR PRICE PROFIT TO ALLOW THE DEALER
Less than $10,000 $200 - $300
$10,000 - $14,000 $300 - $500
$14,000 - $19,000 $400 - $600
$19,000 - $23,000 $600 - $700

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Last Updated Wednesday, 3/10/2010