How do second hand car traders make money?

How do second hand car dealers make money?

  • Answer:

    They purchase cars at auction (cheap), or as trade-ins. They may have a mechanic on staff, but they do not pay $80 an hour! In any case, they fix up the car. They may buy at blue book prices and sell at Blue book price, but the two--private seller and auto dealer--are different. Auto dealer is higher. The bigger ones may also offer add-ons, such as extended warranties: large profit.

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Other answers

Buy cheap and sell high! People with bad credit will do anything to get in a car! Even if it means they will pay twice as much for a shtty car!

Giggidy Giggidy

they sell cars for 5,000 dollars that they buy for 1000 dollars...

By selling lemons.

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