Auto dealer buys 5 yr old jeep at auction, What is the normal purchase ratio of actual dealer cost?

previously respected auto dealer is taking advantage of repeat customer, dealer may have paid 3000,or less for auto at Texas auction,same auto is now being sold at 14900.Auto dealer buys 5 yr old jeep at auction, What is the normal purchase ratio of actual dealer cost?
"taking advantage"? Only if you agree to pay that price.



The price he paid at auction would not typically be that low on an 04 Jeep though, so how do you arrive at that number?



Also, Keep in mind that there are other costs. Lets say he DID buy that Jeep for $3000 (which I highly doubt). Maybe it needed a new engine and/or tranny - thats why it was so cheap. Maybe it was recovered from a theft and had to have the interior and ignition rebuilt - happens all the time.



So I would like to know (a) how you arrived at that auction number, and (b) what other costs were involved in the purchase.



We dastardly evil dealers cant "take advantage" of someone who does not sign a contract. Until you agree to a price, nothing happens.



On a car that is retailed at $14,900, I would expect dealer cost to be $10-12,000Auto dealer buys 5 yr old jeep at auction, What is the normal purchase ratio of actual dealer cost?
mark up is usually 30% ...tell which car and ill look it up and tell you how much was paid at auction ...within grand or two.,,,seems high price to mark up,maybe you misread stickersAuto dealer buys 5 yr old jeep at auction, What is the normal purchase ratio of actual dealer cost?
We try to make as much as we can on used car sales. It's one of the few profit centers left in the industry. I doubt they are making as much as you think, though. It's rare to make more than about $3-4000 on a deal. Good luck.
I really doubt the bought a 5 year old Jeep for 3000. There's nothing wrong with profit as long as you feel you're getting a great deal. Just base your purchase on KBB.