I think this gets back to my idea of selling cars at sticker price and only have to deal on the trade in value. It would make the dealers' stigma of being liars and cheats go away.

Isn't that how Saturn dealers work? How do they make that work?

When I bought my car, I knew it was a low production vehicle, and brand new to the market. I knew going in that negotiations were going to be limited. They had the car marked up $3K over sticker, with the reason given, and I swear this is the truth, "They are getting this amount in Cleveland". I laughed, and said "This isn't Cleveland, now do you want to sell this car or not?"

The sales manager overheard me, and came over and ripped the paper with the extra markup off the windshield.

To me, this was a stupid and unnecessary sales tactic. You start to wonder if they like having people angry when they are willing to spend $35K?

I still believe in the win-win form of sales. Both sides have to be happy, or the deal is not going to work long term, and if you even want to consider repeat sales to the customer. I just think it is crazy to have your newest customers driving out of your place of business with that funny feeling in their stomachs that they have been cheated on the price....

And to answer the percentage question posed by pk, in my opinion, a 10% net profit is a fair return in a mature market like car sales.