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Old 05-01-2013, 03:29 PM   #10
sgoldste01
Scooby Specialist
 
Member#: 322264
Join Date: Jun 2012
Chapter/Region: Tri-State
Location: Webster, NY
Vehicle:
2012 Impreza Sp 5sp
Obs Blk Prl/Drk Gray Mtl

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Quote:
Originally Posted by Angelus911 View Post
Agreed, 16k does sound rather low regardless of what trim you have
Not really. It's pretty well known that dealerships often make more money selling used cars vs. new cars. Competition between dealerships keeps new-car prices relatively low; if a customer doesn't like one dealer's price, he just drives across town and buys the exact same car from the other dealer. Therefore the profit margin on new cars is fairly low (measured in the hundreds of dollars).

This doesn't work on used cars, as the supply of a particular model with a particular configuration is limited. The dealership knows this. If a customer wants a car on the used lot, there's a good chance that it's the only used car like it in town. Supply is low, and demand is high if it's a desirable car. Therefore the profit margin on a desirable used car is high (measured in the thousands of dollars).

When you trade in a car, the dealership's job is to buy it from you for as little as possible, and then sell it for as much as he can get. Surprisingly, dealerships often put their best salespeople on the used car lot because that's where the highest profit opportunities are.

My TDI was in mint condition. The Subaru dealership offered me $16.5k in trade. They probably could have sold that car for $24k. I sold it myself for $22k. It's a win-win. I sold the car for $5.5k more than I would have gotten in trade. And the guy who bought it from me paid $2k less than he would have paid at a dealership.

Everybody is happy. So sell the car yourself, and put the profits in your own pocket rather than in the dealership's pocket.
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Last edited by sgoldste01; 05-01-2013 at 08:48 PM.
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