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I have been shopping for cars in the mid-20K’s at used car lots, and it seems the same cars (make, model, features and mileage) are at least 20% more at new car dealerships. What gives?

4 Comments »

1. 

   Let’s think about this…Usually a major car dealership has a lot more overhead than a small used car lot. ie: it costs them more to do business. Something else to consider is new car dealerships get most of the trade-ins. They pick off the cream of the crop for their lot and the less-desirable ones are wholesaled and bought by the smaller independent used car lots. So most of the used-car lots sell the vehicles that a big dealer wouldn’t touch. Think about that.

   Comment by Scott H — June 12, 2011 @ 6:40 am

2. 

   On your next visit to one.Step back and look at the building who you think pays for that.And now look at the Clothes the salesman wear,Do i need to go on?

   OH,If you check an owner that has one for sale,they will be cheaper than a used car lot.

   Comment by Ronnie Wrench — June 12, 2011 @ 6:40 am

3. 

   its the same thing. one says it more eloquently cus they have a luxury car dealership which may also explain the price

   Comment by myspace.com/streetdrift290 — June 12, 2011 @ 6:40 am

4. 

   I’ve worked for an auto auction, several "pot lots" as a free-lance car jockey, and a major dealership. What do you get? The dealership will dump cars they don’t think measure up to their standards, and believe me, they can be tough. I’ve seen and driven beautiful late-model Corvettes, Cadillacs, Mercedes, and others through the auction because the dealer decided not to carry them. Just needed some restoration that indicated the car had been mistreated even at low miles. Another way the the used car lots get nice looking vehicles is through car rental agencies. You want to try to avoid some of the rental cars unless you know what you’re looking at. My last vehicle, a 2005 Chrysler minivan, is a former rental vehicle. I was very critical of the van and had the used car dealer fix everything I found wrong with it. I got a great deal on the van and would have had to spend about $3000 more on it at the dealer. If I would have had any doubts, I would have spent the extra money…just got lucky. If you don’t feel that lucky and want to spend a good chunk of $$$, consider the dealer. Most of the time the dealer has a reputation to uphold and will be there in 2 or 3 years. The used car lot? Who knows? They come and go frequently.

   Hope this helps.

   Gil

   Comment by Gil D — June 12, 2011 @ 6:40 am

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