How much do dealers make on new cars?

Dealer holdback: This is money the manufacturer pays to the dealer only after a car is sold. It's typically 2 or 3 percent of either the invoice or the sticker price of the car. On a $20,000 car, a holdback represents $400 to $600. The holdback allows dealers to sell a car at invoice price (or even below invoice) and still make money. read more

In addition, car dealers must pay a percentage of every transaction to the salesperson and finance manager. Industry-wide, there is no simple rule to put a dollar amount on how much a dealer should make on the sale of one car, but they assuredly deserve to make something (especially if one expects the dealer to be in business for service and warranty work the following year). read more