$2000-2500 over their cost.TIP: A good rule of thumb is that a dealer’s ad price is^
Since you now know what they normally make, it will give you an ideawhether an offer you might make is fair or unrealistic. Trucks and most (^)
vehicles over $30,000 will command higher margins; $3,000-$4,000 istypical. Surprisingly, vehicles in the $5,000-$10,000 can have higher
margins as well—a range of $2,000-$3,000 profit before negotiation beginsisn’t uncommon.
Unless a vehicle is rare or in high demand, most dealers (and individuals)will drop $500 off their price without much effort on your part...you just have (^)
to ask. Going beyond $1,000 will usually take a bit more work, especially ata dealer. And don’t forget they usually charge D&H on used cars as well.
Use the information in the other chapters to help you in your negotiations.
Private party transactions are somewhat different. Many people don’t reallyknow what their car or truck is worth—they check one Blue Book, and
perhaps some advertised prices, and assume that this is an accuratereflection of real transaction prices.