There is a long standing myth that car dealer's are trying to rip people off. Let's take a closer look at this. Most car dealers price their vehicles less than 10% above their cost, give or take a little. Let's compare this to other retail businesses. Take for instance furniture. Furniture in many cases is marked up 400 percent or more.
Eyeglasses are something most of us need. These are often marked up 500 percent from the sellers cost. I could go on and on.
The fact is, as far as retail sales go, car dealers are on the low end of profit mark up. Couple this with bluebook value drops every three months and you can see that it is a difficult balance to sell off aging inventory and obtaining new inventory.