How To Really Spend Less Money On Purchasing A Used Car

Posted by Admin at 12 June 2023, at 06 : 47 AM

How To Really Spend Less Money On Purchasing A Used Car

Yes, it is better to buy a second hand car than the usual new car. It can save you on depreciation, taxes and insurance. A lot of people do not realize that, although a vehicle is necessary, additionally it is the worst investment possible because it depreciates 20 to 30 percent in value the minute a new car is driven off the dealers lot. Make the most of someone else by buying a slightly car (1-3 years old with 10,000 to 30,000 miles). Let someone else pay that ridiculous depreciation. Besides with all the recent improvements in cars of most makes and models it is not uncommon to get a car to operate to 200,000 miles.

It was once that within the 80s a import would run 100,000 to 150,000 miles plus a domestic like Ford or GM was good until 80,000 to 100,000 miles and then it was time to junk it. With recent improvements it is not uncommon to get a car to succeed in 150,000 miles plus of any make. Once you equip this with the fact that most states have a rather high sales tax, property tax or combination thereof that’s directly related for the value of the vehicle, a used car having a lower value becomes a more attractive option. Even insurance policies are lower on used cars.

Having experience among the top car salesman inside the entire country, I can definitely explain how a used car dealership makes money and exactly how much they are going to profit away from a sale. The basic rule of thumb is always that for every $10,000 in price there is certainly at least $2,000 in markup or profit. So, inside a $20,000 car the asking price includes around $4,000 in dealer markup (profit). On top of that there is a dealer processing fee that virtually every dealer charges (average of $300 to $600 per car). The what are known as dealer processing fee is simply pure gravy or profit for the dealer. The processing fee came into being as a way to generate non commissionable profit (profit that the dealer failed to pay a share of towards the salesman).

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