Question for Carbiz

[mustang84]

I can't remember who all here is in the auto sales business, but I believe Carbiz is?

Anyway, I am looking at a 2001 Lincoln LS V8 that goes for about $8870 according to Kelly Blue Book. However, most of the same year / features / similar mileage that I've seen are between $7900 and $8500 (the $7900 is a private seller).

The salesman that I am going through at a local F-L-M dealership is asking $8700, which my uncle (who owns a used car business and goes to auto auctions all the time) says is on the high side. He also says that KBB values are usually overinflated.

My question is, what size profit margin would the dealer be expecting on this car? I realize they can't sell it for a loss, but are we talking $100 profit? $500? $800? Is there a ballpark percentage they usually try to hit? I told him I am looking at $8000 and asked if that will work for him, but he kind of avoided my question at first and then gave me a run-around answer and then finally "maybe I could talk them into the mid 8's." I will probably go for it @ $8200, but I'm trying to get the best price possible since I want to avoid taking out a loan and this price doesn't include taxes and other fees.

[mustang84]

Alright, priced it out on Edmunds with the same options and came out with this:

Trade-in: $5704

Private Party: $6978

Retail: $8355

I know for a fact this car was a trade-in from the salesman's brother, so I'm guessing $8000 should be very workable for them...?

[Croc]

Use the Redbook. That's what dealerships use to price cars as they get traded around via auction.

[cletus8269]

Use the Redbook. That's what dealerships use to price cars as they get traded around via auction.

dont forget NADA. my aunt is a branch manager at a back and anytime an auto loan comes up she says its what their bank bases the appropriate loan on.