DealPrepare
Free Tool

Dealer Profit Simulator

Dealers juggle three levers to hit their profit target. Move one and watch the others compensate. That is the game they play on every deal.

The Three Levers

Move any slider. The dealer always hits $2,500 in profit.

$19,000Base cost: $19,000$22,000
3.0%Qualified: 4.0%8.0%
$7,500True value: $10,000$11,000

Profit Breakdown

Total Dealer Profit

$2,500

Target: $2,500 on every deal

Markup Profit$1,000
Rate Spread Profit$500
Trade Undervalue Profit$1,000

Key insight: The dealer always hits their target. Lower the price and they make it up on your rate or trade-in. The only defense is knowing all three numbers before you walk in.

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How to Protect Yourself

Get Pre-Approved First

Walk in with your own rate from a bank or credit union. If the dealer can beat it, great. If not, you already have your floor.

Know Your Trade-In Value

Check KBB, Edmunds, and CarGurus before visiting. The dealer will offer less. Knowing the real number gives you leverage.

Negotiate One Thing at a Time

Agree on vehicle price first. Then discuss your trade-in separately. Then financing. Bundling them lets dealers shift profit between levers.

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