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Important Reminders for Dealers

Important Reminders for Dealers 2025

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The document provides important titling tips and reminders for licensed vehicle dealers in Missouri, emphasizing the need for accurate reporting of sales-related amounts on title applications to prevent vehicle sales tax fraud. It outlines procedures for documenting trade-ins, advising new residents about tax credits, and proper use of dealer plates. Additionally, it introduces a new online feature for reserving personalized license plates and mentions upcoming changes to marine transaction receipts.

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Do dealerships make money at MSRP?

Dealers can choose to discount a vehicle off of MSRP, or, for especially in-demand vehicles, they can choose to charge above it. A vehicle sold at or below MSRP typically has a small profit margin, much of which may go directly to the sales persons commission.

How much does a car salesman make on a $30,000 sale?

Unfortunately, it isnt an exact science because it changes from car to car and dealer to dealer. However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb.

Should you tell a dealership you are paying cash?

Paying cash may hinder your chances of getting the best deal If you do intend to pay cash, Bill tells us thats something you may not want to say right up front. When dealers are negotiating the purchase price, they anticipate making money on the back end, via financing, Bill explains.

What not to say to dealers?

Lets look at some things to keep under your hat while you explore the lot. I Dont Know Much About Cars My Current Car Is on Its Last Legs My Lease Is Almost Up Im Going to Pay Cash! I Already Have a Car Loan Lined Up I Love This Car Ive Never Bought a New Car Before

What should you say at a dealership?

When youre at the dealership, start with a friendly greeting and then dive into the specifics. You can say something like, ``Im interested in (insert car model here). Can you tell me more about it and maybe set up a test drive? This shows youre serious but also open to getting more info.

Is MSRP what the dealer pays?

If the invoice cost of a vehicle, for example, is $30,000, then the normal 5-percent profit would be $1,500 and the 25-percent sales commission on the sale would be $375. But if the dealer adds a $400 pack, the adjusted cost is $30,400 and assuming the sales price remains the same, the profit isnt $1,500, but $1,100.