Well Duck, I've had my little laugh, and now I'll share with you what I've learned from doing business with various auto dealers...and one motorcycle shop.
18%
About 18% is the mark up, or "spread," a dealer has from his cost to the retail price, however, the dealer may have additional "sales volume," bonuses which can provide a little more profit. In other words, there is no set "mark up," that a consumer can reliably consider when dealing with an auto or motorcycle dealer.
Some dealers have manufactuer's "floor plans." In other words, the dealer doesn't pay for the car/bike until it's been on the floor for a while, and thus, doesn't "own it," in the sense they haven't been billed for it yet. Some dealers buy their stock out right.
Dealers need to make a profit. As so ably put in another post, the dealer principle is paying boucoup dollars for fixed and non fixed costs, and these have to be respected. A dealer isn't going to spend his own money for the enjoyment and benefit of his customers until all his money is gone, and then borrows more to give it away. You made a decent living at your job? Respect your dealer, that he wants a return on his investment. You don't work for free, neither should the sales person, parts person, technician, janitor or office worker.
You've decided what you want to buy, pick 3 dealers of that brand, and go talk to *them* and ask yourself, "which one of these three do I see myself in a mutually beneficial relationship with?"
It's the little things. My local Honda guy (auto) and I have known each other, in a business relationship for over 20 years. I know for a certainty, I can dealer shop and grind away at some poor dealer principal and perhaps save a few hundred dollars. We've long been at the point where I know he's got enough money on the table for a profit, and yet he's giving me a discount. Why? I've bought from him several times over the years. When my wife had a flat tire at work, and I was 50 miles away, he sent two of his techs out to her place of employ, and changed over the spare, drove it away and returned it an hour later, with the tire repaired, and car washed.
No charge.
I asked him why no charge...."Simple. With some customers I can offer that kind of service at no charge.I can afford it.Some customers grind me to the last penny....I can't offer them the same service."
Squeezing every last penny out of dealer profit is not good for either party.
For me (and only for me, you actual experience may vary), as an agent to dealers, we had a relationship. They bought from me, I bought from them.
Some dealers may have the opportunity to pass along "incentives," from the manufacturer, to discount unpopular colours and models. You can take advantage of these by building a relationship with a dealer. Over the "long haul," of vehicle ownership, that relationship pays big dividends.