Having used to sell cars in a previous life, many years ago now, the dealer markup used to be around 7%. However, it was manufacturer dependant. The dealer also gets incentives for selling new vehicles, for example I used to get loads of M&S vouchers, can you believe that!!

If you are getting large discounts that will be the manufacturer passing down bigger discounts to the dealer perhaps on slow selling models, or old stock that they want to get rid of. Believe me, in terms of pure cash, the markups are much more on used cars, (can be well in excess of 20%).
