PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
"How and when does a car dealer make a profit off of selling me a car? "
"I am early in the process of buying a new car and I don’t want to get ripped off by a dealer wanting to make way too much of a profit off my lack of knowledge. How can I know how much the dealership's cut is?"
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Dealerships usually make their profit via a commission or a one-time payment when you buy the car. Sometimes, this is obviously done by marking up the MSRP of the car you wish to buy. This can be avoided by shopping around.
Other ways dealers can profit include a flat rate commission, which is paid to them for providing you with financing through captive lenders and by marking up the interest rates they provide to you. This can be avoided by seeking your own financing before negotiating at the dealership.
Also keep in mind that when budgeting for a vehicle, you will also need to get insurance. You can find good deals by using a smart comparison tool like
Jerry
to help you find the best rates.” View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies