Car Dealers
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Q: Car Dealers?
I was wondering, if I became a car dealer, how do I get money to pay for the cars at an auction to try and sell? In other words, when a car dealer purchases the car they want to sell, where does the money for that car come from? Do they pay for it out of their pockets, or take out loans? Another thing, how good does your credit have to be in order to become a car dealer?
A: I tell you coming from a family of car dealers. Most car dealers have about a $200,000.00 line of credit at the least that they have to work from. The main reason is being the can’t have leins on the cars that they are trying to sell it would make things too difficult. So all in all you would have to have excellent credit to start a good car lot. If you wanted to buy 2 or 300 dollar cars fix them and sell them on buy here pay here terms well you could do that with little effort if you have the mechanic ability to repair them yourself. That is what I do in my spare time and I make a pretty good profit from it. Not enough to do it full time, but I have never tried either. Go for it, if you have the will there is a way.
Q: car dealers?
If someone totals there car and the insurence pays for it and you go back to the same dealer and they say they can get you in a car about the same price,and then the day you go pick up the car they say you need 2000 down but said nothing about it the entire week.Plus they let you drive it for a week..I think if they let you take the car for a weel at the end of the week you need 2 grand,does this make any seens.Any in put would help.I know it sounds weird.And they new this person had no money and no other car.
A: Sounds kinda Fishy to me too…
Unless your credit situation ahs changed, you having totaled that car should make no bearing on your new approval…
It may have to do with how long ago you bought it, along with what the situation was when you bought the one that is wrecked….like if you traded in / Had equity / money down etc…
Main thing you should do is straightforwardly ask…”why?”
As long as you have been paying on it right, there should be no issues.
Chris
Q: What do car dealers do with the unsold cars models at the end of each year?
Ok it is the end if the year and a car dealer has 20 cars left unsold for that year. What happens to those 20 cars? Does the dealer change the sticker to the next year or do they sell them to rental companies or send them back to the factory? If they are sent back to the factory what happens to the car then? Is it disassembled and melted down or sent to overseas markets for sale? Also do dealers buy a certain number of cars for each year based off of previous sales?
A: They sell them just like any other car just they will be more willing to give you a better deal on left over model.They can not change the year from say a 2009 to a 2010 it is illegal.A good sales man will work his tale off to sell you last years model to get rid of them as they will be instructed to do so by there boss.
Q: Do car dealers really have to pay to get rid of part exchange cars?
I have a mate who saw Top Gear about once and he says that it costs some classy car dealers around £1000 to get rid of unwanted part exchange cars. and that if you ask them right they will sell them to you for not very much money at all.
I disagree; I don’t see why a car dealer would not take the opportunity to make even a few hundred quid.
Is my friend right? And if he is, how do I go about claiming one of these old cars for myself?
A: When we get in cars like that, we want to get rid of them as quickly as possible. We have no use for them. We cannot resell them, we don’t want the bother of taking them to auction, and they look bad sitting on our lot.
If you are looking to buy something like that, simply ask the dealer about the wholesale cars that they just want to get rid of. Explain to them what you are trying to accomplish, and they should be more than happy to work with you.
Q: Why are car dealers offering 2 thousand less for my trade in?
I am 2 years into a 5-year car loan and no longer upside down on its value. The Kelly Blue Book says its trade in value is $13,625, and I owe 11,509. I would like to use the 2 thousand in equity towards a new car. The two dealers I have gone to have said that they no longer go by what KBB says it is worth. They are firmly offering me just 11,500 for amy trade in. Am I missing something? The car is in pristine condition; no stains, scratches, very shinny paint. Very cute Manual transmission Mazda 3. I am only trading in because our family is growing. Another thing, can someone explain how a trade in can affect the taxes you have to pay in California. They are using some mumbo jumbo to confuse me.
The 13,625 is the KBB trade in value. Private resale value is in the 15,000. Thank you for all the great help. ; )
A: Hi Karla,
Kelly Blue Book is a retail online buyers guide, I know of no dealer that has or ever had a “Kelly Blue Book”. They do use, one or combination of other books/sources. The most common being yellow NADA guide for dealers, Nada also makes a whole sale ‘bluebook’ Some dealers go according to current local/regional auction pricing.
Unfortunately Kelly Blue Book does not cut checks or buy cars, If they did I would sell a whole lot more cars. As an information source it is great but remember they get their info from various nationwide sources. And the number is an average of trade allowance.
Trade allowance, if you dont know, is the actual value of your trade plus any applicable discounts. You ever notice how trade prices sometimes vary depending on actual vehicle at same dealership.
With that being said, your trade allowance will vary. Two dealers said 11,500. Are they comparing same car, meaning against same model. The actual value could be 11,000 with 500 added discount. And national average is higher because some vehicles have more room for discount. Say 11,000 with 4000 discount.
Look up trade allowance on kbb or use other resources. edmunds.com or nadagudelines.com, but remeber only use as a guideline.
The dealer needs to fix anything that might be wrong, even if you dont see it, they have to preventive mainteance, or replace half worn but still good for you tires or brakes, warranty the vehicle for next buyer and most important of all. Make a profit.
Trade and taxes. Since you already paid tax on your current vehicle when you bought it. The trade price is deducted from the selling price. That subtotal is taxed. (im in NY)
selling price-trade allowance=taxable subtotal+sales tax+applicable fees+your payoff-down payment=Amount to finace.
Good Luck, email me if i can be of more help
-Chris
Q: When do the car dealers reduce their prices due to cars being a year older?
I’m looking at buying a used car that costs too much, in my opinion. Since the 2009’s are coming, i was wondering if that’s when car dealers reduce the price of their used cars. If not then, what does it happen?
A: if it is a used car, then the dealer owns it for a fixed amount, regardless of what is happening in the new car arena. If I, as a dealer, buy a car for $10k, then I own it for 10K today, next month, and until it sells.
As a used car, most managers want it on the lot no more than 60 days. There are some exceptions – I know one used car manager who kept a 350Z over 19 months (idiot). Typically the dealership wants to operate on a 60 or 90 day turn.
I would not expect it to be there when the 09s come out. After all, it is a used car, and the only one he has. So, when its gone its gone. Go in and work your best possible deal. If possible, shop for financing and get that pre-approved. Most banks will tell you what the low and high value of that car are, so you can shop informed.
Good luck
Q: What are the minimum requirements to get a car dealers license in new york?
I want to know what exactly do you need to get a car dealers license in new york? what are the minimum requirements?
I would like to be able to buy cars at dealers auctions wholesale. any info would be appreciated, thanks!
A: NEW YORK
Ph: 518-473-5595
Dealers must be registered to do business in the State. Application and fees are submitted to Vehicle Safety Services Division in Central Office of DMV. Facility inspections are conducted prior to registration issuance.
Dealer License Fees: original registration
$325.00 for two years (includes $25.00 application fee)
$300.00 for renewal
Registrations are for a two-year period only.
Dealers purchase MV-50 Certificates of Sale from the Department.
Q: Used car dealers: is Manheim the more expensive auction to purchase from?
I’m a few weeks away from opening my first used car business within Canada, however Manheim is an international used vehicle auction. I was wondering if it is also considered one of the cheapest auctions for purchasing vehicles. I have access to their website and I am overlooking the sale prices of the vehicles and the vehicles are more expensive than I originally anticipated.
So, if there are any used car dealers here: do you find Manheim as being a cheaper auction to buy from within your area?
A: Big auctions like Manheim & Adesa and known as “retail” auctions because cars bring so much when there are competitive bidders. (Even though they are supposedly “dealer only” auctions)
You will see lots of retail buyers at most sales. They pay dealers to bring them.Complete with their “edmunds used car price guide” direct from the bookstore.
Smart dealers SELL at the big auctions and buy directly from new car dealers and/or much smaller dealer auctions.
Unless you know what you are doing, you are likely to overpay anywhere you buy for the first 6 months or so.
Your first few years actually, if you last, you will look back & laugh at how little you knew.
Just because you got a license and have a lot doesn’t mean you are “ready”. You have a whole lot of expensive eduction ahead of you.
That doesn’t mean you wont make money, its just you will make far less than if you were a much better buyer.
I used to go to 3-4 auctions a week,even when I had no intention of buying anything.
That’s how you KNOW a bargain when you might see one.
Q: Can car dealers refuse to do warranty work?
I have a 2007 Chevy Aveo with 8800 miles and I need a new throttle. I have been waiting for the part to come in since 7-11 and was told the part takes 3-5 working days to arrive. I keep getting the run around from everyone in the service dept. I read that car dealers can refuse to fix your car even if it is under warranty. Can they do this? and is there a criteria on why the can?
A: Yes, they can and they do. If you are not getting serviced, go to another authorized dealer. Any dealer should honor your warranty.
Q: How do I get a car dealers license in Minnesota?
I want to know the complete details or where to get them about applying and getting a car dealers license in MN. I don’t really want to pay a lot of money and sign up for one of those creepy websites to send me a bunch of tapes and whatever. I don’t mind going and buying a book. I really would like to get my dealers license for fun but i hear its a lot of work and you have to have a lot of money or know someone that has one to give you some pointers. Thanks for any help and/or answers to this one.
A: Go to your local Small Business Administration, they should be able to help you.
Q: What car dealers still sell the 1973 cadillac sedan deville?
I’m 16 and going to get my license soon, I’m looking for a 4 door 1973 cadillac sedan deville, but I’m not sure if car dealers stil sell them. I live in Florida if that helps. Thanks.
A: Look in junk yards for a 73 caddie. But in Fl. it may have alot of rust.
Q: How much do car dealers make?
I was just wondering the average mark up car dealers make. Is the invoice price the amount a car dealer pays the manufacturer for the car? Is it less?
A: The invoice is what the dealership paid for the car but for every car that the dealership sells the manufacturer gives them a kickback so even if a dealership sells a car for $100 over invoice they still make between a $1000-$1500 for every car they sell. However the used car industry is the one to be in we can buy a car between $1000-$2500 and make between $1500-$3500 per car after financing.
Q: What types of Scams do car dealers do to make a car seem better than it is?
I am thinking of getting a 95 Cadillac Seville STS. Seems like a nice car. It drives well anyway. It is from a small dealership and a friend said that I should watch out for small dealers because they can typically do things like put saw dusat in the transmission or heavy gear oil in the crank case to allow the car to get a few extra miles out of it so it can sold faster and at a higher rate. Anyone ever heard of anything else I should look for?
A: Take the car to a good mechanic and have him check the compression of the engine, look for leaks or recent signs of work and give you an overall idea of what the condition of the car is. Most small used car dealers buy at auction and typically do minor things to make the car look better. Mostly that involves buffing the paint and cleaning the engine compartment along with some minor repairs. If they have been in business for a long time you can ask around about the reputation. Saw dust in the rear end, pepper in the radiator, heavier oil in the engine (look at the dipstick and you can tell if the oil is thicker) and other things like that are not likely being done by a dealer. Check the radio pre-sets and see what type of music they are on. If it is metal, I would avoid the car as it was likely driven by a kid.
Q: Are car dealers allowed to permanently engrave their dealership logo into the back of a car?
I’ve noticed this on a lot of cars, and I’m not a big fan of it.
I’ve also noticed that some car dealers make the car owners use a license plate frame provided by the dealership — why do the car owners allow this? (I know I wouldn’t)
A: There is no law that says they can’t engrave their logo on a car. As long as it’s done prior to you signing papers, then it’s your decision as to whether or not to purchase. So, to answer your question, Yes. This is similar to dealerships that drill into the front bumper to apply a license plate bracket. If I live in Indiana and choose to buy my car in Illinois, then chances are my new car might have 2 holes in the front bumper.
Once you drive the car off the lot however, you can take off any plate bracket or sticker they apply to the car. In closing, if it’s on the car prior to your signature, then by signing the contracts, you are agreeing to purchase the car with the engraved logo. I hope this helps to clarify.
Q: Why are car dealers the scum of the Earth?
I worked with two guys who were car dealers a few years ago. Both were actually nice guys outside of the show room. They were the type that wouldn’t hurt a fly. Very nearly literally.
Both admitted they would happilly scr&w over a customer to increase their commission.
We worked together at a bar. Neither would do anything unethical to get better tips but both would talk people into things they didn’t need and into paying more than they could comfortably afford.
Now, when I buy a car, I bring someone with me who is actually working in or intimately familiar with the automotive industry.
I can understand trying to get the best commission one can but I can’t understand doing so at a moral cost when a person is otherwise far more moral than that.
A: I’m the owner of a small lawn care company, and it is my honest opinion those two dealers do dirty business. It may be legal, but that doesn’t make it right.
While car dealers in general may have this reputation, lawn care personnel are not far behind, and I am certain it is by example we lead.
As the owner it is my job to provide the customer with a service that will both work and that they can afford, a practice that may become clearer once a few customers fail to make their payments.
But, if repeat business doesn’t interest the owner and they don’t mind chasing after deadbeats for the purpose of punishing someone whom they knew ahead of time could not afford it, then I suppose that is their choice because in the end there exists no collection method that guarantees payment, so it works both ways.
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