Been looking for a used Toyota and actually found one at a nearby dealership, but the blue book price is lower for a private seller than a dealership. Do dealerships charge more because of some reason unknown to me?
2006-07-26 03:43:57 · 10 answers · asked by happydawg 6 in Cars & Transportation ➔ Buying & Selling
Reputable dealers will often do much reconditioning of a trade-in before offering it for sale. Often vehicles need mechanical or cosmetic repairs and are sold with warranties. dealers can also help arrange financing options for vehicle purchaces
A private seller doesn't have to stand behind anything, they
can sell a vehicle 'as is' and if it needs repairs, that is the new owners responsibility.
Often, private sellers don't want to deal with having strangers coming to their homes or places of business, to even look at or buy their vehicles & don't want to deal with wondering wether your payment arrangement is good or not.
Hope this gives you some insight.
2006-07-26 05:04:14 · answer #1 · answered by Vicky 7 · 2⤊ 0⤋
blue book values take into account the overhead costs for a dealership.
A private seller does not have to pay employees, commisions, and business related costs for selling the vehicle. Plus most reputable dealers will inspect the vehicle and make any necesary repairs before selling. You should be able to talk your way into a warranty on parts and labor for a short amount of time and you do have room to negotiate. Tell them the amount you are willing to pay, and be ready to walk out if they do not work with you. Plus they may be able to offer you financing right there. However you will probably have much better luck getting financed through your personal bank.
My wife bought a 27,000 dollar SUV a few years back for about 34,000 because she never got the bottom line dollar amount and agreed on payments. Plus they screwed her over on her trade in vehicle.
I told her what to do and the next time she got a 4,000 mile Demo vehicle with a sticker price of 45,000 for 28,000. She was amazed that it worked.
Car dealers make more money off used cars than new cars. Remember there is a lot of room for negotiation there.
Good luck and be willing to walk out, another vehicle will come up if they are not willing to work with you.
2006-07-26 10:58:25 · answer #2 · answered by ColvinBri 2 · 0⤊ 0⤋
Ever actually look at a "Kelly Blue Book?" Every car,truck and motorcycle has both a Retail or Private Sale figure, and a Trade-in Value figure. I try to avoid dealers when looking for vehicles for that reason. I don't begrudge them making a profit, I just don't want to pay it. Google "Kelly Blue Book" and see how it works.
2006-07-26 11:31:36 · answer #3 · answered by mr. phil 1 · 0⤊ 0⤋
Some dealers provide recourse to the lender in the event of default. Which means they take the car back.
Which gives the car a higher lending value.
2006-07-26 10:48:30 · answer #4 · answered by Left the building 7 · 0⤊ 0⤋
Depending on your state laws a dealer may have to provide some type of warranty. Usually a sale by private owner is "as is" no matter what they tell you.
2006-07-26 10:56:41 · answer #5 · answered by Final Answer 3 · 0⤊ 0⤋
mutiple reasons, commision, because the can, because the usually put money into a car they sell like matainance, repairs and cleaning.
2006-07-26 10:48:40 · answer #6 · answered by walstib_710 2 · 0⤊ 0⤋
$$$$$$$$$! they have to make money to pay everyone and to make comision:)
........plus you have to pay taxes on top of everything!-just look for a nice used car from a nice owner...don't rush.....and be very careful with the dealers, they can be very shady!!!!! good luck!!!!!!! :)
2006-07-26 13:45:28 · answer #7 · answered by tee21 2 · 0⤊ 0⤋
Overhead: utilities, payroll, advertising, etc.
2006-07-26 10:47:21 · answer #8 · answered by a kinder, gentler me 7 · 0⤊ 0⤋
commission
2006-07-26 10:46:29 · answer #9 · answered by Not_Here 6 · 0⤊ 0⤋
because they can, pure & simple.
2006-07-26 10:46:35 · answer #10 · answered by don 6 · 0⤊ 0⤋