How do second hand car dealers make money?

Let’s learn how do second hand car dealers make money. The most accurate or helpful solution is served by Yahoo! Answers.

There are ten answers to this question.

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Answer:

They purchase cars at auction (cheap), or as trade-ins. They may have a mechanic on staff, but they...

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Answer:

Buy them low and sell them for a markup or scrap them out for parts.

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Answer:

Just like anyone else makes money/profit; they buy low, and sell high! Primarily, second hand dealers...

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How do car dealers make money on a daily basis i dont think they sell a car everyday?

THERE LIKE MILLIONS OF DEARLSHIP OF CARS AND NOT EVEN MULTI BILLIONAIRS BUY CAR ON A DAILY BASIS JAY LENO IS AN EXCEPTION AND I M SURE REPAIRS COMES IN LIKE EVERY ONCE IN A BLUE MOON SO HOW DO THEY PAY THEIR BILLS

Answer:

There is no need to "shout" or type in all caps. There are not millions of dealerships. Ford...

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Stm Ghazi at Yahoo! Answers Mark as irrelevant Undo

Should I buy my friend's car? How can we fairly value it?

One of my oldest friends is selling his 2002 VW Passat Station Wagon (GLX V6). He bought it new and has taken good care of it (I've known him for 30 years; he takes care of things). He has all of the car's records. As it turns out, I'm in the market...

Answer:

You can do a ton of research to try to arrive at the "fair market value" of this car. But...

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betsbillabong at Ask.Metafilter.Com Mark as irrelevant Undo

Car dealers making money on the finance?

OK, I have heard car dealers get paid a kick back from a bank if they get the customer to finance with then. What happens if I buy a car and the dealer sets up the financing and I make one payment and refinance car after like 5 weeks to my credit union...

Answer:

wow. Well, first off, yes - dealerships receive comission on finance contracts. That comission is called...

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gear jammer at Yahoo! Answers Mark as irrelevant Undo

Buying a car, where do I find out about hold back money and incentives to dealers?

Read the article on yahoo about where car dealers make their profits and it said to check to see if dealer is getting hold back money or an incentive. Where would I find this information?

Answer:

http://www.edmunds.com/ try here

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casey at Yahoo! Answers Mark as irrelevant Undo

Answer:

It really varies by dealer. Car salesman make commission which is a percentage of the sale.

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Anonymous at ChaCha Mark as irrelevant Undo

Answer:

I work at goodwill so i should be able to explain it. its where all the crazy people gather. im not...

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3L5VD4WH3CRH6BCVB6ICEFOCCQ at Yahoo! Answers Mark as irrelevant Undo

Answer:

I don't know about the UK, but I think it's not very different from the US. If you look at a Carmax...

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