# How much do car dealer's make on any Hackr worthy deals (considering 1% of the MSRP as benchmark)

**URL:** <https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535>\
**Category:** Off-Ramp\
**Created:** [July 11, 2018, 2:16pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535 "2018-07-11T14:16:16Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![mce](https://leasehackr.b-cdn.net/letter_avatar/mce/32/5_5575768a8748004e209b776fc1b2916d.png) [@mce](https://forum.leasehackr.com/u/mce)\
**Post date:** [July 11, 2018, 2:16pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/1 "2018-07-11T14:16:16Z")

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How much money do car dealers make on any Hackr worthy deals, considering a minimum of getting the car for 1% MSRP?

As mentioned by @Jon in another post they make money on the following

> **It does not matter to a dealer if it’s a purchase or lease. They still get paid for the vehicle. If a dealer sells for below their cost, they make up the money via different ways: add-on items, doc fees, warranty packages, marked up interest/MF, used car sales, service dept, bonus money from Corp for hitting targets/quotas, etc.**

If i refuse to pay for the VIN etching, nitro tires, any additional polishes, take any warranty packages (all lease warranties are covered under12k/36 or 15k/36), service dept (most of the economical and big 3 luxury car provide serving or they can be negotiated to provide free servicing for the term of the lease), marked up MF, where else can a dealer make money on a hackr worthy deal?

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**Author:** ![Ursus](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/ursus/32/4944_2.png) [@Ursus](https://forum.leasehackr.com/u/Ursus)\
**Post date:** [July 11, 2018, 2:20pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/2 "2018-07-11T14:20:53Z")

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> [@mce](#):
>
> If i refuse to pay for…

You may simply not get your deal at all. But the answer (at least partial) is in the quote you used: “bonus money from Corp for hitting targets/quotas, etc.”

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**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\
**Post date:** [July 11, 2018, 2:25pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/3 "2018-07-11T14:25:11Z")

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> [@mce](#):
>
> all lease warranties are covered under12k/36 or 15k/36

No, they are not. Many if not most non-lux OEMs have 36k mi warranties so you’re out of warranty on a 36/15k lease

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**Author:** ![joeblogs](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/joeblogs/32/44022_2.png) [@joeblogs](https://forum.leasehackr.com/u/joeblogs)\
**Post date:** [July 11, 2018, 2:29pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/4 "2018-07-11T14:29:07Z")

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Some brands have a power train warranty that goes longer than the 3/36

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**Author:** ![mce](https://leasehackr.b-cdn.net/letter_avatar/mce/32/5_5575768a8748004e209b776fc1b2916d.png) [@mce](https://forum.leasehackr.com/u/mce)\
**Post date:** [July 11, 2018, 2:29pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/5 "2018-07-11T14:29:33Z")

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> [@Ursus](#):
>
> You may simply not get your deal at all

This might be partially true in my opinion. Dealers came back to me after few days when i asked them to absorb the add-on costs, but it might be an one off since they can be desperate trying to meet the quota.

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**Author:** ![bknight27](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/bknight27/32/7896_2.png) [@bknight27](https://forum.leasehackr.com/u/bknight27)\
**Post date:** [July 11, 2018, 2:31pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/6 "2018-07-11T14:31:27Z")

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I find this a funny question. I mean honestly who cares. I have had more than one salesman try the “I am not making any money on this deal,” It is a disruptive negotiation from a buyers prospective. If I never do business with them again that is fine. Now they on the other hand are the ones that want to establish the relationship and need to make me happy for that to happen. I think this is a negotiation point too many people forget. Always be willing to walk away.

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**Author:** ![jananth1](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/jananth1/32/10553_2.png) [@jananth1](https://forum.leasehackr.com/u/jananth1)\
**Post date:** [July 11, 2018, 2:33pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/7 "2018-07-11T14:33:12Z")

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There’s no way to determine how much a dealer makes on all deals. Some deals have a lot of lease support from the manufacturer, so the dealer provides less $$ and can make more money. Other deals are on cars which have been sitting on lots for a while, so while the dealer might lose money on the lease deal, they can move the unit. Hitting targets can make up for a small loss on a sale as well.

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**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\
**Post date:** [July 11, 2018, 2:33pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/8 "2018-07-11T14:33:49Z")

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> [@bknight27](#):
>
> I mean honestly who cares

I agree. If you’re happy with the deal, worrying about how much the dealer made is just a way to make yourself miserable.

And who said 1% was some sort of benchmark anyway? 🙄

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**Author:** ![mce](https://leasehackr.b-cdn.net/letter_avatar/mce/32/5_5575768a8748004e209b776fc1b2916d.png) [@mce](https://forum.leasehackr.com/u/mce)\
**Post date:** [July 11, 2018, 2:35pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/9 "2018-07-11T14:35:49Z")

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> [@max\_g](#):
>
> I agree. If you’re happy with the deal, worrying about how much the dealer made is just a way to make yourself miserable.

I understand this might a stupid question but for some reason it is a curious question to me. lol.

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**Author:** ![bknight27](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/bknight27/32/7896_2.png) [@bknight27](https://forum.leasehackr.com/u/bknight27)\
**Post date:** [July 11, 2018, 2:37pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/10 "2018-07-11T14:37:00Z")

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I think 1% is just an obtainable number for most cars. (Always some exceptions) It doesn’t always mean a good deal. It really depends on incentives and the vehicle etc. I mean if someone came to the group with a 1% deal on a Volvo S90 everyone would be losing their minds about how bad a deal it was.

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**Author:** ![mce](https://leasehackr.b-cdn.net/letter_avatar/mce/32/5_5575768a8748004e209b776fc1b2916d.png) [@mce](https://forum.leasehackr.com/u/mce)\
**Post date:** [July 11, 2018, 2:37pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/11 "2018-07-11T14:37:17Z")

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> [@jananth1](#):
>
> There’s no way to determine how much a dealer makes on all deals. Some deals have a lot of lease support from the manufacturer, so the dealer provides less $$ and can make more money. Other deals are on cars which have been sitting on lots for a while, so while the dealer might lose money on the lease deal, they can move the unit. Hitting targets can make up for a small loss on a sale as well.

Thanks. Informative answer.

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**Author:** ![mce](https://leasehackr.b-cdn.net/letter_avatar/mce/32/5_5575768a8748004e209b776fc1b2916d.png) [@mce](https://forum.leasehackr.com/u/mce)\
**Post date:** [July 11, 2018, 2:38pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/12 "2018-07-11T14:38:39Z")

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ROFL 😂😂😂 2020202020202

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**Author:** ![mp11477](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/mp11477/32/9283_2.png) [@mp11477](https://forum.leasehackr.com/u/mp11477)\
**Post date:** [July 11, 2018, 2:55pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/13 "2018-07-11T14:55:54Z")

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> [@joeblogs](#):
>
> Some brands have a power train warranty that goes longer than the 3/36

While true, it’s not going to cover your infotainment screen, or the air conditioner that decides to stop working. Powertrain would be beneficial, no doubt, but not a full saving grace.

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**Author:** ![iKevyn](https://leasehackr.b-cdn.net/letter_avatar/ikevyn/32/5_5575768a8748004e209b776fc1b2916d.png) [@iKevyn](https://forum.leasehackr.com/u/iKevyn)\
**Post date:** [July 11, 2018, 2:56pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/14 "2018-07-11T14:56:16Z")

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Most dealers makes their money from “the worst lease deal you’ve seen” thread and of course service department.

> [@Worst leases you've seen](https://forum.leasehackr.com/t/worst-leases-youve-seen/9717):
>
> What are the worst deals, comments, advice, etc you have seen on the web or IRL? [This guy](http://www.swapalease.com/lease/details/2015-Mercedes-Benz-E-Class.aspx?salid=1021037) leased a Mercedes E350 for $1,250! And he’s offering a $13,000 incentive to get out of it! Then there is this comment below: $1,250/month for an $85K MSRP vehicle is ridiculously…low. [image]

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**Author:** ![mp11477](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/mp11477/32/9283_2.png) [@mp11477](https://forum.leasehackr.com/u/mp11477)\
**Post date:** [July 11, 2018, 2:57pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/15 "2018-07-11T14:57:36Z")

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> [@bknight27](#):
>
> I have had more than one salesman try the “I am not making any money on this deal,

When I hear that, I fire back, “don’t make the deal then if it’s that big of a hardship, I’ll go elsewhere.” They shut up quick.

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**Author:** ![mp11477](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/mp11477/32/9283_2.png) [@mp11477](https://forum.leasehackr.com/u/mp11477)\
**Post date:** [July 11, 2018, 2:58pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/16 "2018-07-11T14:58:51Z")

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> [@max\_g](#):
>
> And who said 1% was some sort of benchmark anyway? 🙄

@max_g, you truly hate the 1% internet lore 😂

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**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\
**Post date:** [July 11, 2018, 3:01pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/17 "2018-07-11T15:01:59Z")

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On a macro level, this is easily googable. It’s covered in the financial media and dealer corporations like Autonation are publicly traded. The short answer is that their business models no longer rely on per-unit profits from the sale of a new car. It’s mostly service, parts, F&I products and used sales

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<div class="post-metadata">

**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\
**Post date:** [July 11, 2018, 3:03pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/18 "2018-07-11T15:03:22Z")

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You know me all too well 😊

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**Author:** ![joeblogs](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/joeblogs/32/44022_2.png) [@joeblogs](https://forum.leasehackr.com/u/joeblogs)\
**Post date:** [July 11, 2018, 3:06pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/19 "2018-07-11T15:06:00Z")

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Most sales people make the minimum commission on any new car once it’s discounted any significant amount(cars in demand would be the exception). Used cars are a different story, no invoice on those to figure what the dealer paid. I heard Honda dealers make allot of money Accord Touring Hybrid’s…

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**Author:** ![Bjam](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/bjam/32/51487_2.png) [@Bjam](https://forum.leasehackr.com/u/Bjam)\
**Post date:** [July 11, 2018, 3:33pm UTC](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535/20 "2018-07-11T15:33:37Z")

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Surely for every Leasehackr-worthy deal, there are a hundred others that they’re making bank on in any given month so it all works out right?

[Next page](https://forum.leasehackr.com/t/how-much-do-car-dealers-make-on-any-hackr-worthy-deals-considering-1-of-the-msrp-as-benchmark/53535.md?page=2)
