[trader220]

Originally Posted by berettafan

Price range plays a part as does target audience.

Lots that cater to minorities with lousy credit probably are seeing an average markup of 60% plus usurious interest, etc.

Lots that cater to mid life crisis white guys probably see 40% markup.

Percentages are a bit deceiving. Sure you can make 60% on a 3 or 4k dollar car but in the end the real profit you make looks better as a percentage, its the old penny stock game. Yea I doubled my money on that stock. I bought at 1 cent and sold at 2 cents, problem was I could only do it on 1000 shares. Hey its a 100% profit. I would say there is no useful way to generalize about average markups for any segment of the population.

Financing on those kinds of cars is not much of a money maker either. Even when the lousey credit type client pays a massive interest rate the dealer is not making much on the rate. Its not like a dealer is buying money for 2 or 3% and selling it to a bad credit client at 25%. The dealer is the conduit for the finance company or bank and they're making a tiny sliver on the finance contract.