Car Buyers Believe Dealerships Entitled More Profit
Buying a car can be a test of wills, a challenging round in the sport of haggling - a game at which few Americans have much practice. According to a new nationwide survey from Zag, consumers may be tossing in the towel needlessly.
The survey reveals that a hefty majority of consumers believe car dealerships are entitled to more profit than they’re now receiving.
When Zag asked 1,000 consumers what they thought a fair profit would be for the sale of a $40,000 car - with all marketing and overhead costs considered - 72% were willing to give dealers more money than the dealers were actually netting. According to industry data, dealerships average less than $1,000 in profit per new car sold.
Singles vote for higher dealer profits. Non-married respondents were more willing to say dealers should make more money.
The oldest age group favored a lower amount as fair compensation.
On the upper end of the dealer compensation scale, education was something of a factor. The greater the respondent’s educational level, the less likely the dealer would walk away with $2,500.
