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Location: In a little house on the prairie - literally
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I know one franchised dealership that prides itself at being one of the highest markup (gross profit) on a used vehicle of all the dealerships in the country.
But you get a car that is virtually immaculate. If it has a scratch, it goes to the body shop. No pitted windshields. Tires less than 60%? Put new ones on. Etc. Etc.
Have a problem with your car? Bring it in, we fix it, and give you a loaner.
They have a tremendous client following, and many know they are paying extra, often thousands more. But the dealership services the heck out of clients. And if your trade-in is truly better than average, no one in the area will pay as much as they will, as they want that good vehicle. I've known their used car manager to go to other dealerships, pick the best cars on the lot, and pay virtually full retail for them, because he knows he can make a good profit on the cliental they attract.
It's an interesting concept.... proud to be the most expensive place to buy a used car. They are very successful.
Used Car sales are often more profitable than new car sales... the margins tend to be larger and the cars more unique... there are any of a dozen places to buy a new Toyota Corolla... on the other hand the one owner 7 year old car with 40,000 miles tend to be much rarer.
I've often found cars with high resale value might make it worthwhile to consider new...