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Currently, dealerships make as high as $1600 per vehicle on financing and insurance while only about $300 on the sale of the actual vehicle.
Low price is less of the determining factor now.

dealer profit from financing and insurance per vehicle


Not from financing and insurance mark-up -
"Rather, AutoNation and its other publicly traded competitors report that most of their F&I profits come from the sale of F&I products like service contracts, pre-paid maintenance, tire & wheel protection, GAP and others. "


"For the dealer groups, the key figure for F&I is the disproportionate impact it has on overall profits. At AutoNation, for instance, F&I accounted for just 4.2 percent of revenues, but 26.8 percent of gross profits, second only to parts and service. " my emphasis
 

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If they ever sell you paint and upholstery sealer they do the happy dance of pure profit. The finance guy is not your friend. Most of the profit is earned in his office with financing, insurances, extended warrant, paint sealer, fuzzy dice, etc. anything you add at that time is usually with high profits. Buyer beware
 

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What about the 5 thousand they take off without hesitation. Without even seeing the finance guy. I new right then and there , there is alot more dealing 2 be done.
 

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"For the best practitioners, if you guessed an average of $1,600 per car, you’d be right. That is correct, $1,600 per car – on average. That means many units are higher, although many of course are lower. That number is also an average of new and used cars combined. "

1. When people tries to justify or validate the statistic, it's debatable (i.e. defining "average"). I think the median value might be as useful.
2. When people tries to combine to different of populations (i.e. new and used), it creates a lot of complexities in the analysis.

But then again, he claims to be "reporter" not a journalist. He can only report on what others fed him and I don't think he got a good set of data to work off of.

These types of reporting are important part of the overall assessment but I think it's premature. Hopefully, there will be more reporting of this type with some precisions.
 
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