Repair Considerations

• One example, given by Youngmoney.com, states that a General Motors vehicle was bought and then repaired for $400. That repair cost will factor into the mark up. Some cars do not need pricey repairs; however, some do. The more extensive a repair, the higher a mark up will become.
  
  

Location

• Vehicles are priced higher in larger markets than in smaller ones. For example, labor costs in Los Angeles are higher than they are in Peoria, IL. therefore the cost of a vehicle to begin with is higher. After repairs and the profit of the dealership factored in, the mark up is much higher in the large city.
  
  

Actual Mark Up

• Kelley Blue Book, a trusted source for car buyers, lists a 2000 Chevy Lumina at just under $7,900. Based on Youngmoney.com's analysis of the GM vehicle mentioned above, the Lumina will obtain a mark up of around $3,555. This puts the total price at $11,499, which is the average 45 percent mark up (based on research by Youngmoney.com) including an average repair cost of $400.
  
  

Average Mark Up

• Mdwholesale.com states that "as a rule of thumb, every $10,000 has a $2,000 mark up included." That amounts to a 26 percent mark up. It explains a processing fee is often included to the amount of $300 to $600, although it all depends upon the dealer. This means that a vehicle with a base, not retail, price of $13,000 (like one listed through Kelley Blue Book) could end up costng $16,380.