how do used cars traders make profits?

Answer 1

they make profits by sellign the used car for more than blue book value...

ie.. you may use your old car as a trade in for a new car purchase...

they give you 1000 for your old car.. but sell it for 1900.........
plus there is a lot of mark up hidden in the purchase of a new car... that is why you will often see.. "sales" indicating.. ONLY 50 dollars over invoice..... Not a good way to make a living if you really only got 50 dollars............ per sale....

Answer 2

The usual way: buy low, sell high.

Usually, they take in cars 20 to 50% below Kelly's Blue Book value for purchase (i.e. the whole-sale / trade-in price), then they clean it up, fix it a little, then they sell it at KBB's dealer / purchase price (maybe a little lower).

They will often try to convince you of various options you don't need, such as prep fee, extended warranty, and so on.

They will try to sign you up for auto loan, which they get a tiny percentage as extra profit if they succeed.

Answer 3

Go to www.adviceontime.com they have a comperhensive article on how dealers make profit under buying a new car guide. Its free info .

Answer 4

First they purchase your car as cheap as possible, then they sell it for more than twice what they pay for it. I average $950.00 weekly part time. There is not much profit in new cars.

Answer 5

.. they attempt to get the customer to pay the ridiculous flow value on the branch of motorized automobiles. In my state, i won't use the license from my previous motor vehicle on a sparkling motor vehicle. I could get a sparkling license, plus different stuff, and its high priced. ,,

Answer 6

Buy low sell high - and some do quite well at it too!

Answer 7

buying low and selling high of course

Answer 8

Stop repeating you questions!!!!! Let people have some time to answer them.

Answer 9

intrest