Spread
The difference between the wholesale (auction) price and the retail price of a vehicle. A larger spread means more potential profit.
Definition
The difference between the wholesale (auction) price and the retail price of a vehicle. A larger spread means more potential profit.
Related Terms
Profit Margin
The percentage of the retail selling price that represents profit after subtracting all costs. Calculated as (Retail Price - Landed Cost) / Retail Price.
Retail
The price at which vehicles are sold to end consumers, either at dealerships or through private sales. Retail prices include dealer markup and reconditioning costs.
Wholesale
The price at which vehicles are sold between dealers, typically at auction. Wholesale prices are lower than retail prices.
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