MSRP question for new cars

jp33435jp33435 Member Posts: 1
edited April 2015 in Chevrolet
For large SUVs, do you think the dealer makes a 20% profit on MSRP? So if MSRP of a Suburban is listed at $60,000, then the dealer invoice should be around $48,000 (which would give a profit of $12,000 or 20% of the MSRP). Just curious if anyone has any thoughts on the subject.
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  • steverstever Guest Posts: 52,454
    edited April 2015
    It's easy enough to look up invoice prices.

    For a 2015 LT 4WD, MSRP is $58,400 (no options, includes destination). Invoice comes in at $54,396 and the average price is around $55k when looking up TMV.

    The next question is whether invoice really has much to do with the actual price the dealer paid Chevy for the SUV. There's a lot of bonuses and incentives we don't know about that can lower the price the dealer pays. So your $48k guess could be spot on.

    Generally, margins on small cars are a lot less than the big SUVs and trucks, and luxury rides.
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