Quote:
Originally Posted by Joe240
Quote:
Originally Posted by ASAP
On new cars, the profit margins are lower and the market is more baselined, so the dealer cant screw you as badly. Now, if you have a used car and you are trading it in for anither used car, their profit margin / ways to screw you are absolutely limitless.
I have done the math on numerous cars that I wanted to buy from a dealer vs what they paid someone for that car, and what the dealer would pay me for my car vs what it was worth on the street. Believe it or not, but the math on 3 or 4 of those scenarios somehow came out to a net profit of ~$10k... and that is before the dealer fees. In other words, dealers look to royally fuck people... I am not even sure how a profit like that on a single transaction is even legal.
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The price you find on a trade in is not always what the dealer paid for the car. I helped my grandma buy a new trax just last week and they wanted to give her $500 for her 1999 f150 with 72k miles. Private party for the truck was around $2-3k. I told them that I wouldn't take less than $2k for the truck on trade in because I could get $2k tomorrow selling it private party or $3k in a week. They ended up giving me $2k for her truck on trade in and still sold me the brand new chevy trax for $18k ($16k out the door including her truck for trade in).
The point is, just because KBB says the car is valued at XXX trade in, doesn't mean that's what they paid. Dealers will always try to save the most money because they know that people will try to haggle for more on their trade in, and less on the car to purchase. That $10k profit margin you saw could definitely have been more along the lines of $2k if haggling was performed on both ends. Also, that $2k "profit margin" doesn't include the overhead of running the dealership. |
The dealers I have been frequenting in the Miami area do not move on either the trade or sales price... kind of laughable.
Again... let me repeat my point... car private party online value - $12-$13k, dealer offered 6
Car for sale $34k... available elsewhere for 31... dealer wont budge.
Add dealer fees to that... this is sexual assault the way I see it.