Buying a used car for my daughter?

[Farmer17]

My daughter will be turning 16 and I am looking at buying her a used car. I am looking at spending 5 to 7K dollars and want to get something that gets good mileage, is safe, and will be fairly reliable and inexpensive to repair. She says she likes Mustangs but getting her one at that price would be very high mileage and in poor shape. The used Honda and Toyota cars seem to have high reliability but are also very expensive on the used market. The American cars are probably the cheapest to repair and I see nice PT Cruisers and Ford Taurus in that price range, any thoughts?

[GatorFarmer]

What does a used Scion XB run? Driver sits up higher for good visibility and mileage and safety are decent.

[S&WIowegan]

We bought used Honda Civics or Toyota Corollas for all four of our girls. The cars all had sticks shifts which they really loved. To this day, they buy stick shift cars....Hondas, Mazdas, Coopers.

You just can't beat the durability of Civics and Corollas if they haven't been abused. They are made in the USA too. Don't buy anything without the service record.

[snubbyfan]

My wife loves her little Toyota Yaris. It's very dependable and gets about 40mpg on the highway. As far as safety, that things got airbags all over the place.
Should be right in your price range.

[3dots]

PT's have front wheel bearing issues and need replacing about every 40-50k miles. I have a 2010 Kia Forte that just turned over 80k and have NEVER had an issue, just change the oil every 4k. Oh yeah, I did a brake job on it myself and just got some new tires .

[Cpo1944]

Buy her a Ford crown vic and disconnect half of the spark plug wires,and remove the stereo. Seriously I feel sorry for you for the worry you are about to endure, young drivers need to get experience and there is only one way to do that.With that in mind I would buy the safest thing I could find. Maybe your local police force could advise you on cars they believe are safe for kids. Good luck,and let us know what you decide on.

[4barrel]

The area you live in I would shop the Dallas paper for a Nissan Maxima that an older person has owned. For your price you should be able to find one with under 90000 miles. They are sporty looking-only come with a v6 engine- get great mileage -and run their butt off. They handle great & low maintenance & repairs are low. The transmission has a drain & easy to do as the oil change & nothing to grease. This is easier to keep up than xxx. Your daughter will look good in it.

[4barrel]

Originally Posted by snubbyfan

My wife loves her little Toyota Yaris. It's very dependable and gets about 40mpg on the highway. As far as safety, that things got airbags all over the place.
Should be right in your price range.

What are you doing here? You blew up Cuba in your last post. I think the explosion was a little overkill. Airbags wouldn't have helped much.

[snubbyfan]

Originally Posted by 4barrel

What are you doing here? You blew up Cuba in your last post. I think the explosion was a little overkill. Airbags wouldn't have helped much.

That was a big hornet, he deserved overkill.

[sheepdawg]

I had a 2003 Ford Taurus that I put 200,000 miles on, all I ever did was change the oil regularly and the usual other stuff, sold it for $3000 and still see it on the road two years later. Decent gas mileage, not great just over 20 mpg in the city. Maybe 25 or 26 on the highway. Lord stay away from PT Cruisers. I bought one for my wife in 2007 and it was a money pit. It didn't get much better gas mileage than the Taurus. Got rid of it, it took a while, and put Mrs. Sheepdawg in a 2010 Ford pick em up.

[jarhead1178]

Agree on the PT Cruises. Junk.

[Old TexMex]

Ford Focus.

[6518John]

My car-loving 10 year old boy says Bugatti Veryron. "Only" 1100 HP.

Bugatti Veyron Reviews - Bugatti Veyron Price, Photos, and Specs - Car and Driver

[H Richard]

I will give you my standard advice. Buy your daughter a "big" heavy all steel car (ignore gas mileage). Title it, license it, and insure it all in her name. The big car will let her carry around lots of her girl friends, it will have lots of steel in it to protect her when, (not if), she has her first accident, your insurance won't take a hit when she has that accident. Good luck, you and she will be in my prayers.

[Arik]

PT Cruisers are garbage. I used to sell them. It's a neon station wagon. Doesn't mean a good one doesn't exist but as a brand they suck.

The good thing about Toyota and Honda are expansive on the used market and the good part of that is that you will one day sell it. In 07 I bought a 2001 Toyota Solara (2 Dr camry) with 84k miles for $6k. The car had had a previous front end accident which I wasn't concerned about. I sold it 2 years ago for $2K and with almost 300k miles, rust spots on hood, dented fender and door. Put it on Craigslist and it sold in 24 hrs. When my friend was in college he bought a ugly used 1991 Honda Accord stick with everything manual. 167k miles He payed $650 and half of his reasoning was it had new tires. He sold it years later with 220k miles, rust, holes, and broken window motors for $50 less than he paid for it.

All areas are different. Around here $7k is a mid 00 Corolla with 70 - 90k miles.

[kozmic]

I leased my eldest son a 2014 1LT Chevy Cruze RS. It's a great, well equipped car. I got him a 39 month lease (36k miles) so it will be under warranty for most of his term. Oil changes, fluids are included. He's getting just shy of 35 mpg in mostly short, hilly, city driving at college. I paid an additional 10 bucks per month to cover the first $5000 in repairs at the end of the term. So, I shouldn't have to worry about; brakes, tires or excessive wear and tear, etc. I will pay to rotate tires so they are safe until he turns in the car.

He had a Subaru and it began to nickel and dime me to death. I could have bought him another used car, but in 39 months it wouldn't be worth anything, wouldn't get the same milage, be as safe or reliable and cheap to operate and maintain as his Cruze. The insurance is as reasonable as can be expected for a 20 y o male driver living 9 months away from home!

It will cost closer to $8.5-9k all in at the end of the lease (for a $23k car), but I feel we will save a bunch on maintenance and add'l gas, etc.

For me, I have one less huge thing to worry about when he's 150 miles away at school. It was a no brainer and he's happy as a clam. He's had it for just over a year, is comfortably under his milage and has had zero expenses other than gas.

Call your insurance agent before you get a car to see how it will affect your rates. BTW, good grades and driver's ed get discounts.

As always, YMMV (literally)!

Congrats to your daughter and good luck!

[Rustyt1953]

Someone say Hornet?

[sheepdawg]

Originally Posted by H Richard

I will give you my standard advice. Buy your daughter a "big" heavy all steel car (ignore gas mileage). Title it, license it, and insure it all in her name. The big car will let her carry around lots of her girl friends, it will have lots of steel in it to protect her when, (not if), she has her first accident, your insurance won't take a hit when she has that accident. Good luck, you and she will be in my prayers.

Again the Taurus is a very high rated car as far as safety goes. I had a 96 Taurus company car and had a wreck with a dump truck. The driver crossed the double yellow line and turned right into me while I was sitting at a stop sign. Mashed most of the front of my Taurus back to the firewall totaling it. I got out shaken but without a scratch.

[ditrina]

Wife... TWO daughters.. one word..

HONDA..

Change fluids.. rotate tires.. 100,000 miles Timing belt and water pump.. next stop.. 200,000 miles

[hittman77]

You might get insurance sticker shock putting a 16 year old in a Mustang.

Something like a Malibu or Impala comes to mind; even a Taurus. My wife and both daughters have had Impala's with the 3.4 or 3.8 motors. Absolutely ran the wheels off of them with no problems at all.

[m1gunner]

Crown Vic ( and whatever Mercury calls the same thing) are safe and dependable. Lots of steel to protect precious cargo. I sold one recently on Craigslist, and it went in 24 hours, they have a big following.

26 mpg all day long on the highway, I was very pleasantly surprised.


Hondas are nice, but all the protection is via airbags. A deer ran into the wife's Accord and did $2600 in damage. The doors provide zero protection in a side impact, no beam or real structure in them.

[LVSteve]

Originally Posted by hittman77

You might get insurance sticker shock putting a 16 year old in a Mustang.

The Maxima suggested earlier might also be up there.

[erics]

I agree with Honda or Toyota. 3 daughters and we put them all in Hondas. More than pleased with results, repairs etc. First two graduated university and bought themselves new Toyota Ravs with 4wd. Overall I would go Honda for front wheel drive, service, gas mileage, insurance rates. Daddy piece of mind comes from up front investment!

[ben_g1]

Check out the Honda Element. If she can get by the looks. You either hate it or love it. Very practical, lots of room for hauling stuff, rate's high on reliability/safety, decent used prices, and runs forever.

[sigp220.45]

My budget was quite a bit lower than yours. I got my daughter an ex-Sheriff's office transport Crown Vic for $1200. It had 180,000 miles on it, and she drove it for almost six years for just gas, oil, and one set of tires. It finally crapped out, and I got her a Toyota Corolla which she loves.

For seven grand, you could get a pretty decent used Toyota, which is what I would have done if I had the dough back then.

I would definitely pass on the PT Cruiser. They are cheap for a reason.

[Chuck24]

PT Cruisers cruise Part Time.

[Mydogmax]

Mileage not so good but plenty safe.
image.jpg

[Arik]

Originally Posted by m1gunner

Crown Vic ( and whatever Mercury calls the same thing) are safe and dependable. Lots of steel to protect precious cargo. I sold one recently on Craigslist, and it went in 24 hours, they have a big following.

26 mpg all day long on the highway, I was very pleasantly surprised.


Hondas are nice, but all the protection is via airbags. A deer ran into the wife's Accord and did $2600 in damage. The doors provide zero protection in a side impact, no beam or real structure in them.

I work with a lot of police cars. You should see how not protected they are. Not anymore than anything else on the road

[boatme99]

A couple o f points for you to consider when buying used cars.

If you can, take a day when the lots are closed, go to as many as possible just to see what's there, without being hassled.
Take a notepad and pencil to keep track.

Find the ones you like, then look them up online to get an idea of price ranges. You'll be amazed.

Try and narrow the field down to a few models. You know, like, Toyota Prius, 2008-2012, Ford Whatever 2010-20013.
That way you're not running around looking at every piece of junk listed on craigslist.

There's a lot of information online about every specific car made.
Check the NHTSA website for any recalls and/or tech bulletins on EACH vehicle you're interested in.

Also check cars.com (?) Edmunds.com, And a couple other internet used car sales places. They will give customer reviews of cars so you can see if there are any trending problems with certain models or years.

That 2008 Civic may be a bad buy as compared to a 2009 model.
Just because they look the same outside, there may have been changes made to upgrade or repair areas that were minor problems in previous years.

Stay away from ANY of the vehicles that have been involved the recent ignition switch or airbag recalls!! NHTSA, here!

Do you have a good mechanic? If not, find one.
When you narrow the choice to 1 or 2 cars, take them to your mechanic to check them out.
If a seller won't allow this, individual, or dealer, walk away.

For about $70. each, he should be able to give it thorough going over.
He should pull all 4 wheels, check brakes and lines, check for fluid leaks that you can't see from the top, cv joints, engine compression, and generally tell you if the car has been well maintained or is a junker that was detailed for a quick sale.

Don't discount "lemon lots", you know, those local independents. Most have earned the abovementioned nickname, but there's usually one or two fairly honest ones around.
Again, go online and find the good ones. Also, look around while you're out and notice the dealer stickers on nicer cars you see around town.
Most good second hand lots will have local repeat customers. A lot of frugal seniors buy at reputable lemon lots.
Yeah, I do.

And lastly, and most important.
Do NOT get emotionally attached to any car on the lot!
Stick to the plan!

Don't get in hurry. Try and make it fun with your daughter.

Good luck and good shopping!

[BC38]

OK gets a fair amount of snow doesn't it? Get a late model jeep Cherokee (1997 - 2001) with the 4.0L inline 6 cylinder and the AW4 automatic tranny. Not a GRAND Cherokee - the regular boxy looking Cherokee.

They aren't stellar on gas mileage - 18 to 19 mpg tops, but with routine maintenance they will easily run to 200k with little or no major repairs. All steel, very safe, reliable, excellent in snow and off road. Lots of room for hauling girlfriends or stuff, reasonably priced, and reasonable insurance rates. Not a hotrod, but decent performance. Great driving position and visibility, easy to drive. I've owned 5 and still have 2 of them.

[riverrat38]

Originally Posted by H Richard

I will give you my standard advice. Buy your daughter a "big" heavy all steel car (ignore gas mileage). Title it, license it, and insure it all in her name. The big car will let her carry around lots of her girl friends, it will have lots of steel in it to protect her when, (not if), she has her first accident, your insurance won't take a hit when she has that accident. Good luck, you and she will be in my prayers.

She is 16, so the car will need to be in his name and insurance until age 18.
We were told that parents are still responsible financially until kids move out, and pay their own way, no matter what age. This may very from State to State.
For this reason, I bought cars that would need Liability insurance only. Still very expensive. Even more after a few tickets.
After the kids get out of college, you can spend your money on the grandkids!

Best,
Rick

[Onomea]

Too bad your're not in California or Arizona:

...At the core of Beepi’s business model is a pricing trick. There are three relevant prices for any used car. The trade-in price, which is what a dealer will give you for your car; the private sales price, which is what you can get if you sold it directly to someone else; and the retail price, which is the price the car will command at a dealership. Dealers pay the trade-in price for vehicles and then sell them at the retail price. On some cars, that spread can be worth 50 percent.

Beepi thinks it can make a profit while operating within a tighter pricing band. When you list your car with the site, the company’s pricing algorithm, which consults data on historical car sales in your area, offers a price at least $1,000 more than you can get by trading in your car at the dealer. That is still less than what you would get selling privately, but Beepi’s price is guaranteed. If your car doesn’t sell within 30 days of listing on Beepi, the company will buy it from you.

On the other side of the transaction, Beepi sells cars at prices lower than comparable certified used cars at dealerships. It can do so, the founder says, because its overhead is lower — it doesn’t have to maintain parking lots to house cars, because the vehicles stay with the sellers until they are sold. Also, because it buys and sells cars over a wide area — currently, any city in California and Arizona — it can take advantage of supply and demand disparities in different regions. Finally, Beepi caps its own fee at 9 percent, depending on price and demand (it will take as little as 1 percent)....


http://www.nytimes.com/2015/04/23/te...lace.html?_r=0

[quneur]

I would second a couple of cars mentioned here, the Ford focus and Jeep Cherokee. For the focus, there are lots of replacement parts available. I know several people who only purchase focus' for repair and resell. They are popular and fairly inexpensive.

The Cherokee is a classic for modifications. Lifts, bumpers, roof racks, etc. are made by many manufacturers and readily 'bolt on'. Because its sought after for rock crawling, it tends to raise prices. Its also hard to find in pure stock form.

As with any brand, it pays to research pattern failures. Certain problems are much more labor intensive than others. Head gaskets, rear main seal, transmission failure will require more $$ than axles, drive shafts, suspension, etc. The latter you could probably repair yourself.

[Shootbrownelk]

I've had nothing but Toyotas for the last 20 years. No complaints about any of them. They run forever. Just make sure to change the oil and lube often, and sooner than recommended. I change oil in mine every 3,000 mi. Oil is way cheaper than an engine. My wife has a Honda CRV.
She loves it, and it hasn't had any problems at all except tires & a battery. She's had it for 8 years now.

[regalsc]

If I was given a foreign car I might drive it. My feeling has to do with buy American. I know they all have foreign parts & some are made in foreign countries. Foreign cars cost more to repair even though the same suppliers provide parts for many car companies foreign or American. I remember back in the late 70's when foreign cars hurt the car companies around here. I'm biased toward american products when there is a choice. The crown Vic is a long lasting vehicle we use them where I work & they are retired at 230k miles & then sold.

[Dominus_Lex]

If I might push you in a different direction, both my son's have cut their driving teeth in a 99' Chevy Tahoe. Lots of steel, lots of room to see other cars (that first accident is not always the kids fault), reasonable to repair with a long life (still being used by kid #1, who wanted it back, with 190k miles) and they can move stuff for you too boot.

As someone else said, for the first car don't sweat the MPG.

[chaparrito]

The definition of "foreign car" these days is pretty hard to pin down. Of the top 10 most "American made" cars in 2014, fully HALF were Toyotas and Hondas.
I'd say yes to a Crown Vic in a heartbeat. Always on the lookout for a good Police Interceptor version. Your daughter will immediately label one a "geezer wagon" and turn up her nose.
An 04-06 Honda Element is in your price range. I have one in AWD with 190K miles on it that I would drive across country tomorrow. Bought it new and plan to be buried in it.

[boatme99]

Originally Posted by Rustyt1953

Someone say Hornet?

Ha! My youngest daughter, the princess, had very high expectations of what her first car should be. I just kept threatening to buy a 1965 Rambler and make her drive it to school.

I ended up getting her a Honda Civic. She drove it all through high school, college, and well into her first job.

When she finally got herself a brand new car, she bought a Honda Pilot.

Funny how things change when you find you're paying for stuff yourself.

[boatme99]

Originally Posted by Dominus_Lex

If I might push you in a different direction, both my son's have cut their driving teeth in a 99' Chevy Tahoe. Lots of steel, lots of room to see other cars (that first accident is not always the kids fault), reasonable to repair with a long life (still being used by kid #1, who wanted it back, with 190k miles) and they can move stuff for you too boot.

As someone else said, for the first car don't sweat the MPG.

While the Tahoe has decent crash test results, they are prone to rollover.
I don't think I'd choose any suv as first car for a new, inexperienced driver.

[Arik]

Originally Posted by regalsc

If I was given a foreign car I might drive it. My feeling has to do with buy American. I know they all have foreign parts & some are made in foreign countries. Foreign cars cost more to repair even though the same suppliers provide parts for many car companies foreign or American. I remember back in the late 70's when foreign cars hurt the car companies around here. I'm biased toward american products when there is a choice. The crown Vic is a long lasting vehicle we use them where I work & they are retired at 230k miles & then sold.

That logic is about 30 years old. Yes of course parts for a new high end BMW will be more than for 20 year old chevy. But comparing similar cars will get you similar results. Camry, for instance is an American made car. It is made in Lafayette IN in a Subaru plant. The same Subaru plant that was built in 1988. In 2016 Toyota will open its own plant in Kentucky for Camry production. In the UNITED STATES Toyota builds Avalon, Camry, Corolla, Camry hybrid, Sequoia, Sienna, Tacoma, and Tundra. The Rav4 and Matrix are built in Canada.

Honda has had a US plant since 1982. Producing Accords and now the TL and NSX. This was the first Japanese auto plant in America.

Parts are no more or less expensive than any other car in the same class. Just a quick search in my area for a 2005 Corolla engine and I can buy one for $750 with 70k miles or $950 with 30k miles.. From model year 04 - 08. For my car, a 2010 I can buy an engine for $1000 with 35k miles.

Sticking with my car....
An alternator $60
Radiator $50
Engine $1000
Trans $400

Foreign cars didn't hurt American companies. American companies did it all to themselves back then. Too big, too much gas, not as reliable. It wasn't the companies it was the people who decided what's better. If no one bought those cars they wouldn't be here.
For instance, when the first Datsun trucks came in they were simpler, more durable, ate less gas, overall smaller, and hauled only a 100lbs less than the F150 of the same year. American car companies concentrated on big powerful engines while the Japanese concentrated on overall quality. Japanese execs actually call dealerships to assess sales. And when it's found that sales are down all across the country they slow or temporary stop production. American execs don't call and are much slower to adapt to the economy thus having lots more unsold products that are taking up storage. Until maybe 10 years ago American execs looked 5 years ahead on technology and trends while the Japanese looked 25 years ahead. On avg Japanese manufacturers change styles every 5 years or so. American manufacturers on avg change every 10 years.

You mentioned Crown Victoria. I work around them. Yep great reliable cars. However, a Japanese 6 cyl car is just as reliable, gets better gas milage and has the same or more horsepower. The Vic has about 220 hp 4.6ltr v8 and about 16 mpg in the city. A 2004 Acura TL has a 3.2ltr v6 270 hp and 20 mpg city.

It's a little more complicated than just just Japanese companies hurting American companies. If you're too slow to adapt and change someone will take your place.

[m1gunner]

Originally Posted by chaparrito

The definition of "foreign car" these days is pretty hard to pin down. Of the top 10 most "American made" cars in 2014, fully HALF were Toyotas and Hondas.
I'd say yes to a Crown Vic in a heartbeat. Always on the lookout for a good Police Interceptor version. Your daughter will immediately label one a "geezer wagon" and turn up her nose.
An 04-06 Honda Element is in your price range. I have one in AWD with 190K miles on it that I would drive across country tomorrow. Bought it new and plan to be buried in it.

Assembled in the US is not a n American car unless the components themselves are US made.

Those Hondas and Toyotas bolted together in the US are still foreign cars. The profits are exported, not spent in this country. More than half the purchase price of a new car is gross profit, and gets sent overseas if the manufacturer is foreign owned.

Look at the engines, trannies, starters, alternators, ac compressors,body panels, tires, wheels, upholstery, etc. All made overseas, not in the US.

[Old TexMex]

Originally Posted by Arik

Foreign cars didn't hurt American companies. American companies did it all to themselves back then. Too big, too much gas, not as reliable. It wasn't the companies it was the people who decided what's better. If no one bought those cars they wouldn't be here.


It's a little more complicated than just just Japanese companies hurting American companies. If you're too slow to adapt and change someone will take your place.

Unless we consider the case of GM and the bailout that precluded this series of events which you discribed.
The market controls were short circuited by a meddlesome and perhaps misguided government policy.

[dougb1946]

Like it or not, believe it or not, kids will be kids. Even the best suffer from occasional brain misfires-usually when with another kid. A good rule of thumb is that judgement and IQ of the driver can be divided by the number of kids in the car. Something big, heavy, slow, with a good crash cage. Kid objects, they can ride the bicycle or walk until they can get their own. Even with a clunker, expect the tickets from driving while dumb. My favorite son picked up a ticket while trying to hide behind a pine tree in a front yard while in a Plymouth station wagon. My Honor Society graduate, with friends.

As a friendly warning: kids caught driving and drinking will hit your insurance rates hard, even if you sell their car and cut up their license, unless you ship them away-over 50 miles. And it's cheaper to ship them away. Make sure they know this. Buy their luggage the day they get their license and let them see it.

[kantuck]

Hey farmer- My Thoughts: The deals are out there to be found but don't expect the best deals to fall into your lap. Many only buy in their backyard whereas willingness to travel , even just in a days distance is going to greatly expand whats available. I'll avoid stepping on certain comments above.
Cars.com is OK but another place to look is Used Cars, New Cars, Reviews, Photos and Opinions - CarGurus if your open to dealer deals. Even if you don't buy there ir will give a good view of dealer cars and prices.
Auto trader has dealer & private cars and while not as popular as once was , still may have your next car. CL is the place I advertise/free and while much riff/raff habits there it remains as the huge sales place that it is. eBay also has some good deals. General comments will likely follow me naming anywhere that's had a problem in the past for them but you have to expand your horizons and consider everywhere that cars are sold to the public.
Buy her what she wants? I remember back when I was single (1950-60's) and thought kids should save & buy their own cars-guess what I did...
After leaving college as the only way I'd be able to afford owning a car, I decided that I'd furnish the cars, at least while my 3 sons were still in school, therefore no excuses like the stupid one I used to quit school. I built wrecks as a sideline so not hard to save money on them too. Fact is I still made money as we drove them awhile, then turned them over and did another.
One valid point to make is don't fall into the "carfax trap"! many great cars have a score lowered by things like fender benders-one very common e.g. and like the Caddy CTS I sold a few yrs back-it had hail damage while I owned it and was properly repaired too. A beautiful car that got lots of comments like I was trying to cheat someone, when in fact the car had zero issues , other than the hail. The real issue is generally this- if a car was repaired, what was the actual damage and was it properly repaired, or not? I use the comparison to marriage- does everyone have to marry a virgin to get a great wife? My answer is no, plus you may never know anyway. carfax is over used as their sales pitch is such that many think every car has to be perfect via that report. There's also much thats not known to carfax. best thing is either that you personally really know cars or have them evaluated by someone that does or be aware through a trustworthy owner/seller that it's a good one.
If you think that based on being a dealer sale your protected-think again,HA!

[DeadAye]

Good gas mileage means more time on the road....
Don't sweat the gas mileage on a 16 year old's car.

A nice pick-up-truck is my vote
The big SUVs are great too - But hard to park.

[JJEH]

Originally Posted by Farmer17

I am looking at spending 5 to 7K dollars and want to get something that gets good mileage, is safe, and will be fairly reliable and inexpensive to repair.

Pontiac Grand Prix GT - girls love it



But seriously, it's a great full size sedan, sporty, good gas mileage, reliable, affordable and within your price range.
They were built until 2008.

[Onomea]

Originally Posted by m1gunner

...More than half the purchase price of a new car is gross profit...

I don't think that is correct. Not for the manufacturers anyway: The Average Manufacturer's Gross Profit Percent | Chron.com

Auto & Truck Manufacturers Industry Profitability by quarter, Gross, Operating and Net Margin from 4 Q 2014

And it can't be true for the dealers either. That is just too darn good!

Ah. Dealers are at 20%: http://www.paulweyland.com/gross_profit_margins.pdf

Of course what matters is net profit.

[A10]

Nissan Alima. Dependable, safe, fair mileage, easy to see out of. It should easily last a quarter million miles with care and maintenance. I'd avoid big American cars for a new driver, as much as I love them. Too much temptation to burn the tires off them. And most of the girls I know (granddaughters and their cousins) would be speed deamons given the chance.

[m1gunner]

Originally Posted by Onomea

I don't think that is correct. Not for the manufacturers anyway: The Average Manufacturer's Gross Profit Percent | Chron.com

Auto & Truck Manufacturers Industry Profitability by quarter, Gross, Operating and Net Margin from 4 Q 2014

And it can't be true for the dealers either. That is just too darn good!

Ah. Dealers are at 20%: http://www.paulweyland.com/gross_profit_margins.pdf

Of course what matters is net profit.

It is really better than that, but the profit is distributed among contractors owned by the parent company. What you are seeing is assembly;y costs, not raw nuts and bolts numbers.

Take your favorite vehicle and call the dealership for the price on a starter, every car has one and they are nothing new. You will get prices in the hundreds of dollars (retail, I know, but what does the factory assign the cost of that starter for that new car?)

If I buy in quantities of 100, I can get OEM diesel starters for $26. Quantities of 1,000 and the cost is 17 per unit. And I could get a single unit from the supplier for $86. For the same starter the dealer wants $375, while NAPA wants $235 for an aftermarket unit. Dealer mark up is 25% from the parent car company on parts.

So what is the "cost" of that component to XYZ Auto Manufacturer? This is done on every nut, bolt, and component.

I remember seeing a cost breakdown in Automotive News on the incremental cost to Ford on their best selling vehicle years ago. MSRP was $12,000+ , incremental cost was under $5,000. (numbers not exact, but percentage spread is right)

The accounting dept employees are paid way better than the production line folks.

[samuelrp]

1. At that age, they can better handle a smaller or medium car.
2. DO NOT BUY A VW !