What is the average dealer mark up?

Do not confuse mark up with profit!  From that mark up all overhead has to be paid BEFORE a profit can be realized.  Even if the retailer is strictly online, there are significant expenses that have to be paid first before the profit kicks in.   And once there is a profit, then taxes have to be paid on that. 

There really is not much markup for the dealer for new cars (used cars there is usually a LOT of markup).  New car dealerships make their money with add on services, financing, the trade in, mostly peripheral endeavors.  

The dealer mark up is his building lease...his family needs.... his food... his clothing... his transportation.    You know.  What you want to save your money for.

To the offended and bashers of this thread.

 Disclosure of this type of material is not such a bad thing. It helps customers appreciate that their local boutique dealer is most likely not getting rich off of your $3000.00 speaker purchase. It might make some not want to beat them up on price everytime they buy a piece of gear. 

How many demos have you done in store, at home?  Sought advice then bought elsewhere on line or even  used gear. It's all time and takes away from the stores bottom line. 

Now that the secret is out... Be kind to your local dealer.  

That could be the result of a thread like this. 

The dealer mark up is his building lease...his family needs.... his food... his clothing... his transportation.   You know. What you want to save your money for.

It's probably more for his business expenses, one of which (hopefully) is a salary for himself so that he can take care of those other expenses, which we all have (except the building lease).

All businesses need to make a profit to cover not just their lease, but payroll, insurance, utilities, advertising/marketing, supplies, and so many other things.