Bailey Lares: The margin on new cars is actually fairly small. The sticker price allows for a plausible markup, but who, in the post-Saturn era, sells at the sticker price? Thus the add-ons: the aftermarket trim bits and the extended warranties and whatever kickbacks they can get on the financing.Used cars are more profitable. Nobody really knows what they're worth - there are guides, none of them guaranteed to be accurate 100% of the time. (This is, incidentally, why all the questions here about "Is a 2007 Bulgemobile with 60k miles a good deal?" are futile in the extreme: the dealer will do what he can to make sure it's a good deal for him, and you have no idea as to the condition of the car. The economists call this "asymmetrical information.") And service is a profit center, especially when the warranty is up and the customer has to pay the full labor rate; the manufacturer doesn't pay quite so much for warranty work....Show more
Willa Holte: It's called! mark-up. For example, they pay you a couple of hundred for your trade-in. They'll take it to their own workshop and get it running smoothly, maybe respray it, generally clean it up, a couple of new tyres, even wind back the speedo, then put it out in the yard and try to sell it for a couple of grand. It's cost them probably a grand to get it up to scratch, so when it sells, they'll make a grand - $1500 profit.
Donte Hamme: the fact is that you're asking an ethical question, no longer a legal one. in all threat, you're interior the sparkling as long as there is no longer something certain interior the settlement that obviously states the vehicle became no longer in an twist of destiny. until eventually the wear became extreme (i.e. body harm), the $3K will be extreme. i understand that is a noticeably negotiable form seeing that they don't favor to take the vehicle again because it will be seen used. they only favor some form of repayment for something they fairly ! figure became an unethical transaction. in case you've self as! surance you should have disclosed the wear, then you could negotiate the shape to $750 or something like that. in case you've self assurance any vehicle purchase is "customer pay attention" then do not do something. clarify that you wish them to point to the contract the position you're answerable for this new "looking" on their behalf. So at the same time as i'd not in any respect inform you to figure, in my recommendations that is a shared accountability of shopper and dealer to exhibit major harm. If she had a small fender bender, then no biggie, yet when she rolled the vehicle or had major body harm, that is all element of her problem, no longer theirs. once you get in an twist of destiny, that is no longer only the coverage deductible you pay for. you should understand then second it occurs that you purely whacked fee off the vehicle - even if you've been at fault or no longer. That has to go back from someplace. And definite, they ought to have performed a carfax reco! rd. that is why it is equivalent fault - if that is large harm purely. Small harm really is not any large deal besides....Show more
Nell Dipiero: Some car dealerships have a service center, all new car dealers do. A large portion of the income is the result of this service center. Also at one time banks gave incentives to dealerships for referrals on car loans. The last factor that I can think of on this subject is after market add ons that they talk customers into buying. Not just real accessories (wheel upgrades and other dress up items) but also things like extended warranties which carry a high mark up.They don't call it fleecing the customer for nothing!...Show more
Brittanie Zakutney: I looked on the sold board and i saw 11 for the week so i know they can't only make a few hundred a car like they say, that wouldn't pay the electric bill.
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