Quote:
Originally Posted by Topspinmo
Dealers do not walk away from deals if they can pick you pockets clean.
I agree They WILL NOT do the deal if they are not making certain amount. they will make you think you got good deal and they gave the car away, but if they do that they won't be in the business long. IMO the WILL make 3k or more or they won't trade, they have too to stay in business. Trading is the worse thing you can do if you have good car, (but most don't want to go through the hassle of private sale.) They're going to want it WAY under the value. Make enough trades and sells after awhile all used cars on the lot are pure profit.
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The average profit on a new car deal in the U.S. in 2016 was less than $1000. This includes the direct profit on the vehicle sale, and any profit from dealer incentives, aftermarket sales, such as warranties, etc. Keep in mind that this is the AVERAGE profit. Do dealers make $3k profit on some sales? Absolutely. Do they actually lose money on some sales. Again, absolutely. There seems to be a belief that dealers make obscene profits. Would you invest $30k in order to make a profit of $1,000? I doubt it. And I haven't even mention the overhead. Well over $200k per month overhead at the average new car dealer. As far as trades, you are correct. The worst thing you can do is trade it. But you could sell it privately to someone who thinks you are charging way too much and wants a perfect car. If something goes wrong, they are probably coming back at you. Consumers think that sellers owe them everything. And when you sell your car privately, YOU are the seller.
Are there some dishonest dealers out there? Absolutely, but they are in the minority. They are investing too much money to put it in jeopardy for a couple questionable sales.