Do used car dealers make money?

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.

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 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.

What is the best state to buy a vehicle?

One of the best states to buy a car is Oregon. This state does not charge sales tax and the registration and title fees average about $112. If you are thinking about hopping on a plane and buying a car in Oregon to save money, you will be disappointed in the end.

Do car dealers take salvage cars?

A dealer may or may not want to purchase a salvage-titled vehicle. Some dealers may work with buyers to accept a salvage car if the customer plans to trade it toward another purchase. However, many dealers have no interest in purchasing a salvage car because they cannot resell it to make a profit.

Can dealerships sell salvaged title cars?

Many dealers cannot sell salvage-title vehicles because of risk and liability issues for resale. In most cases, the dealer will have to sell the car to a wholesaler, so taking the car off your hands likely proves more of a courtesy than a worthwhile sale for you.

What is the largest used car dealership?

With about 2,000 new vehicles in inventory, more than 100 service bays and more than 100 sales people, Longo Toyota in El Monte, California is the largest car dealership on the planet.