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How do used cars traders make money?

How do used cars traders make money?

  • Answer:

    I think they are the biggest 'rip-offs'. But they make money. When you take your car for a new car. The dealership then sells it to used car people or auction (they get their extra money there), when you get a new car (you are paying off the old car-thru 'interest or other fees', if you didn't owe any money..you still pay something for it). If the dealership has their own 'used' car area. The next owner of the car pays the 'pay off' right off the back. That's the down payment. The dealership got their money back. When the car gets repo'd, and the next owner pays the 'down payment' this is money making. Some cars get repo'd so many times, therefore the used car dealership could have made $6000.00 off your 250.00 trade in. AND that's just the 'down payment', not the monthly payments. It's sneaky business... You really need to watch your paperwork, because you are paying for this and that and it's all in the hidden cost of nonsense.

Nigerian woman at Yahoo! Answers Visit the source

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when we trade-in our car with a new one, they would cut down the price. like RM10k for supposedly RM14k. then they trade back to someone else with higher prices. easy.

farina m

i tought this question is ask before 2 weeks ago...

anderson

When I was in college I worked for a dealership that sold new and used cars, and I was curious about this as well so I asked. They mention that they get their money from the interest a customer pays in on when they have a loan, through that dealership.

Caite

buy lelong cars.. resell back.. thats how..

azayi1

Hi You can find thousands of different auction and repo cars really cheap at http://www.carauctions.co.nr then sell them really expensive Hope this helps

John N

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