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What is the average profit margin on a vehicle? Based on data from the National Automobile Dealers Association (NADA), the average gross profit margin on a new car sale for a dealership is around 3.9%. This means that for a $30,000 car, the dealership's gross profit would be approximately $1,170. Dealerships make most of their front end profit on the used car inventory because the profit margin is slightly higher. Not to mention the financing and warranty, which is heavily marked up. #carbuyingt
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