Price Of Used Car

Q.I am still suspicious about a couple things. Why is the price (almost?) always full list price, even when sales are slumping? And doesn't the one price policy prevent you from changing your price during the year? (If you drop the price tomorrow, didn't today's buyers pay a different price?) And if you can reduce your price during the year, why aren't any dealers doing it even when they have excess cars on the lot? Limited competition might explain it in smaller markets but in metropolitan areas with several dealerships, things should be more competitive.

A.There is a "dealer holdback," which is a percentage -- usually stated as a percentage of the suggested retail or of the dealer invoice price -- of the true cost the manufacturer adds to the amount it charges a dealer for every car. The holdback is remitted to the dealer after a certain amount of time but the dealer loses the time value of the money. There are also incentives offered from time to time. Some of them go to the customer but others are for the dealer. The pricing schemes in the car business are so Byzantine that it takes a cost accountant to figure out what the true dealer cost is. When I was shopping for a car last time, the way it was working is the dealer would give me invoice--if I got ripped on the trade. Or would give me a good prive for trade--if I paid close to sticker. Eventually we sold the car ourselves and paid a few hundred over blue book wholesale on a used car.

Other Questions :

Buy Here Pay Here Used Car Dealerships

I have seen several signs in town on used car dealers signs that advertise "cash price". Can a dealer charge me less if I decide to finance the car? How about if I need to use sub prime or buy here pay here options?Around here, some of the "Buy ...

...

Sell Your Used Car

When you embark on a mission to buy a new car or used car or even sell your used car, the reliability factor always remains at the top of your mind. But, you don't have to worry about authenticity any more, as we have introduced an advanced car...

Used Auto Parts San Antonio

My 1991 Mercry Cougar has forever been missing a nut & bolt on the driver's rear side that ties the shock absorber to the wheel assembly. This gives me only three active shock absorbers. The car bounces a bit more than it should, but never enoug...

Find Used Cars Online

I'm in the Austin TX area and I need a little information. Will a pre-Ford model be more reliable than a post-Ford model? One camp in the household thinks we should spend upwards of $30k to get a late-model dealer certified car with some portio...