Walk into any used car dealership in Australia and you'll see a sticker price. But what you rarely see is what the dealer actually paid for that car — and that gap is where the negotiation happens.
The Difference Between Asking Price and Sourcing Price
At TrueCarPrice, we track sourcing prices — the price dealers pay when they acquire a vehicle through auction or wholesale. On average, the retail markup on a used car in Australia sits between 15% and 30% above the sourcing price.
For a car with a sourcing price of $20,000, that means a sticker price of $23,000–$26,000 is entirely normal. The question is: how close to the sourcing price can you negotiate?
Which Car Categories Have the Biggest Markup?
- Luxury SUVs: Often 25–35% above sourcing. High demand, high margin.
- Budget hatchbacks: 10–18%. Competitive market keeps margins thin.
- Utes and 4WDs: 20–30%. Sustained demand lets dealers hold firm.
- Electric vehicles: Wildly variable. Supply constraints drive premiums.
How to Use Sourcing Price Data in a Negotiation
Walk in knowing the sourcing price for your car. A dealer asking $28,000 for a car that sold at auction for $21,000 has significant room to move. Your opening offer should be within 5–8% of the sourcing price — that's a realistic deal that still gives the dealer a margin.
The best time to negotiate? End of month, when salespeople are chasing targets. Late in the financial year is also powerful — dealers want to clear stock.
The Bottom Line
The sticker price is just the opening bid. Knowing the sourcing price turns a one-sided negotiation into a fair one. That's exactly what TrueCarPrice gives you — the number that matters most before you walk through the door.
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