how much can ar salesman take off for used cars

[CourtneyRose]

The average used car has a markup of 10-20% that a salesman can potentially negotiate on. This means on a $20,000 car, there's typically $2,000 to $4,000 of "wiggle room." However, the actual discount depends heavily on factors like the vehicle's age, desirability, how long it's been on the lot, and the dealership's own profit goals. Your best strategy is to research the car's fair market value and make an informed offer based on that data, not an arbitrary percentage off the sticker price.

The listed price, or "sticker price," is the starting point for negotiation. It includes the dealership's cost for the vehicle (what they paid at auction or for a trade-in), reconditioning expenses (repairs, cleaning, etc.), and the desired profit margin. The difference between their total cost and the selling price is the "front-end gross profit," which is where the salesman's commission comes from and where your discount is found.

To understand the potential discount, consider these key factors presented in the table below. This data is compiled from industry reports and dealer financial statements.

Factor Influencing Discount	High Discount Potential (15%+)	Low Discount Potential (5% or less)
Days in Inventory	Over 90 days	Less than 30 days
Vehicle Desirability	Slow-selling models, high mileage	High-demand models (e.g., trucks, hybrids), low mileage
Seasonality	End of month/quarter, winter for convertibles	Spring/Summer for convertibles, start of month
Vehicle History	Minor cosmetic flaws, fewer service records	Clean history, single owner, full service records
Dealer Type	Large-volume dealers aiming for quick turnover	Luxury-brand certified pre-owned (CPO) programs

Your most powerful tool is research. Use third-party websites like Kelley Blue Book (KBB) and Edmunds to determine the car's Fair Market Value—what similar models are actually selling for in your area. This objective number, not the sticker price, should be the basis of your offer. If the car has been on the lot for a long time, the sales manager is more likely to approve a lower offer to free up space and capital. Remember, negotiation isn't just about the car's price; you can also ask for value-adds like warranty extensions or free maintenance services.

[McArcher]

Look, it's not about a set percentage. It's about the pack. The dealership has a fixed cost—the "pack"—that gets added to every car for overhead. That's usually $500 to $1000 that's untouchable. My commission comes from what's left after that. On a fresh, popular car, there might be only a grand or so of real profit. But on something that's been collecting dust? The manager might be willing to lose money just to move it. Your leverage is what you know it's worth elsewhere.

[HavenLynn]

I focus on the out-the-door price, not the discount. I went in knowing the average listing price for the exact model I wanted within a 100-mile radius. I showed the salesperson the listings on my phone. I said, "I'm ready to buy today if you can match this price, including all fees." I didn't argue about his margin; I just presented the market reality. We settled on a price that was about $1,800 below his initial asking price because my data was undeniable.

[LeAlexis]

Forget the idea of a salesman having a magic number. The real power is with the sales manager who approves the deal. Your goal is to make your offer so reasonable that the salesman can justify it to his boss. This means your offer should be based on the vehicle's actual cash value (ACV) plus a fair profit—say, $1,500. If you can demonstrate that your offer is in line with the market, the manager is more likely to accept it than lose a serious buyer.

[HaydenFitz]

It’s a dance. They won’t take much off if you seem eager. I always start by pointing out small, honest flaws—a scuff on the bumper, worn tires—not to complain, but to politely justify my lower offer. I also ask, "What's the best price you can offer if I finance through you?" Sometimes they make more on the loan, so they'll give a better price on the car. It’s about finding where they can make their profit so they feel okay giving some up on the front end.