Do used car dealers make money?
Though there is more profit baked into used car pricing, dealers still make money by selling new cars. Many customers take their new cars back to dealerships for service, a loss leader while the car is under warranty but profitable in later years [source: Henry]. The finance department is another opportunity for the dealer to score.
Can I Sue my used car dealer?
The answer is yes, if you have been ripped off, you can probably sue dealership. As a California consumer, you have clearly protected rights to sue car dealers if you were deceived at the time of purchase. Car buyers are often not aware of car dealership fraud used by unscrupulous car dealers.
Do dealerships buy used cars?
Dealers will usually buy just about any trade-in. The ones they don’t think they can sell on their lots, they sell at open auctions. The ones they keep, they will usually recondition before putting them up for sale. Before buying a used car from a dealer, always ask for the car’s history in writing.
Can a dealership sell a car from another dealership?
If a dealership does not have a vehicle that you want, you can ask if they can do a “dealer locate,” or purchase the vehicle from another dealer to sell to you. This is common practice with new car dealers, and the option is usually offered to the buyer if the dealer locate is possible.
Do car dealers prefer cash or financing?
You may assume that a car dealer will prefer a buyer who comes in prepared to buy the car with cash or a cashier’s check. The transaction is simple and straightforward — you make your payment and drive off the lot just like any other retail transaction. But in some cases the car dealership may benefit financially if you get a loan instead.
Do dealers register cars?
The dealership provides you with the title to the vehicle if you purchase the vehicle outright. The title proves you own the vehicle and you must take it with you to the state agency responsible for registering vehicles; that agency will sign the document over to you, and you, too, must sign it.
What is a car dealership trade?
As the name implies, a dealer trade is an exchange of vehicles between dealers (it’s also called a “dealer swap”). Dealer trades allow salespeople to keep the business of customers who shop with them first, rather than lose them to another dealership that has the car they want.