Dealerships make money of the friction of buying and selling cars, they need used car inventory to sell or they lose profit. Doesn’t matter what the car is sometimes and will also give them a chance to sell you another car. Dealerships would be happy if you sold and bought a new car every day. Kind of like exchanges.
Discussion
The amounts they're quoting me I think exceeds what an insurance pay-off might be if the cars were totalled in an accident.
Is like a stock buyback sort of effect?
More then likely they are just trying to dangle the biggest carrot to get the car over carmax or other competitors that would give you more. They could try a bait and switch and only give you that amount if the car is in “perfect” shape or if you buy another car full markup, etc.
In my experience selling privately like bringatrailer.com is the best, followed by carvana or shift giving you the next best price.
Got it. Bait and switch seems more likely the case.
Unless we were to see a <$20k #btc I have no plans on selling and I'm allergic to car payments. So nothing new for me until the wheels fall off.
This is the way.
All this is accurate. Will also say my 2012 focus was worth 4k in 2019. It's now worth 8-10k because it runs. If I sell it I can't drive money to work. A new F150 jumped 9k from 22-23 so inflation is happening at 20% YOY for that example more on my used car.
Dealerships make money on you by:
Undercutting you on your trade, reselling the trade, selling you a new car, adding in extras like wheel locks, selling special air, moving a vehicle for the manufacturer, and money from the bank for getting you to finance.
The big markups are on parts and labour, so hopefully you come back and get work done (a good dealership will make 1.1x total costs from these two departments) that way car sales are just gravy.
(15yrs dealer experience)
Hadn't thought of that. But yeah, If I had to replace one. I would not be able to at the same price or even close to what they're offering.
Tha KS for the reply.