What is the average dealer mark up?

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.

big_greg...

I do not know how you did it.  But you found a way to disagree with me by essentially agreeing with what I said.  I forgot one word to add to the list. Which was a given. 

@millercarbon Cars generally have 10 to 15% margin. This excludes Holdback which is as little as 2% or as much as 5% Most of a dealers profit comes from parts and service. 

I wasn't disagreeing, but now I am.  I elaborated on what you said as you vastly understated the expenses that go into running a business.

No wonder manufacturers are selling directly more than ever these days.. they can lower their price and still make more money.