The internet has leveled the playing field for car buyers more than ever, but despite a wealth of useful information out there, we still encounter a ton of misconceptions about buying from a dealership. As a professional car buyer, I’m going to clear up some of the most common ones and hopefully save you some frustration the next time you go shopping. “Cash Is King” If you are buying a car from a private seller and you want to haggle them down, telling them you have cash right now will sometimes motivate them to give you the price you want even if they “know what they have.” But at the dealership, the ability to flash your bills gives you no leverage on the price whatsoever. In this current competitive market, dealers aren’t making much on the cars themselves. If you are a good negotiator the dealer may even take what they claim is a “loss” on the car, but in order for those deals to work, they need to make some money somewhere. After all, the dealership would have a hard time keeping the lights on if it didn’t make some kind of profit somewhere. Often this profit comes from financing, namely loans. Even if you get a low-interest loan the dealer still gets a little money on the deal by selling you that loan. Of course, really shady operations can make a lot of money on these loans if you aren’t careful. So that is why it’s key to… [Read full story]
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