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Why Dealerships Pay less when buying Car, but ask to be Paid More when Selling?

/ / Why Dealerships Pay less when buying Car, but ask to be Paid More when Selling?

(Last Modified on: September 11, 2019)

If you have ever tried to sell a car to a car dealerships, you will have experienced being offered much less for it than it was worth. However, you already know that this is normal, so you don’t complain. Even if you see the exact same car on their yard being sold for much more. It is in the same condition and everything. How could this be?

Car Dealership pay less when buy car

The same goes for buying vehicles. You will be paying more for the car than it is worth. This is due to the costs that dealers have to pay in order to run their business at a profit. It is hard baked into the system. Why? Let’s find out!

Sales Experts

The sales people need to eat and feed their families. They get a portion of the sale that they make in the form of commission. This adds to the cost of a car.

Reconditioning

Often the dealer will get sold a used car that needs work done on it to make it more sellable. That work will cost money as well. Perhaps the vehicle needs to be detailed completely, or maybe it has mechanical issues that have to be sorted. The money this costs get passed onto the price tag it ends up with.

Depreciation

Cars are notorious for dropping in value via a process called “depreciation” and it starts as soon as the vehicle in question is driven out of the car lot that they were parked on. It also costs a lot of money to have them on the car lot in question to begin with. Perhaps this is another reason for why the cost of buying a car is so high when buying it from a used car dealership as opposed to buying privately.

Showroom or Car Lot

Businesses cost money to run. The costs include the electricity, the rent for the property itself that the business sits on, maintaining the site, and so forth.

Of course, you can look at all the extra costs as being worth the benefits you get from going to a used car salesperson and buying from them. What benefits are we talking about here? Well, for one, we are talking about the sheer convenience of having the cars right in front of you to look at. You also get to take one for a test drive at any moment.

Maybe this sounds like your cup of tea. However, it is important to remember that we live in an era when things don’t have to be this way. We can go online and browse cars there as well. We can interact with the seller and visit them if we are interested in the vehicle. There are far better ways to get our hands on the vehicle that perfectly suites all our needs while being affordable and second hand. The days of having to pay more in order to pay sales people and business overheads are going to be over soon!

Get in contact with Taha Car Collection if you have a vehicle in question that needs to be sold quickly for the market value of even better.

Posted By: Glen Hunter | Posted On: September 11, 2019 | Category: Why
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