How much would you say a fair profit is for a Ford Fiesta?
Whatever FORD says. The MSRP isn't just for consumers, but as a guideline for dealers and a reasonable profit for that particular vehicle is considered and is built into every MSRP by the manufacturer. If you aren't happy with what your dealer product selection, then look at higher end vehicles which have a higher selling point. Lower priced vehicles have lower profit margins and higher priced vehicles have higher profit margins. There is ZERO reason other than greed for a dealer to mark a vehicle up over MSRP. That's exactly why Dodge said they would build the MSRP vehicles before the orders with ADM...because they understand the customer is getting ripped off and it's a way to discourage dealers from charging mark ups they feel are unfair.
We all know it's just like a movie theater, the ticket seems like the main purchase, but all the profits come from the add ons (candy, popcorn, drinks...much like financing, extended warranties, protection packages, etc)