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Need your help/opinion CR...


Buck531

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But are car prices typically higher at a larger dealership than a smaller one? I would think there has to be, or volume is responsible for making up the difference. Is there a huge difference between what dealerships pay for a vehicle or do they even purchase the vehicles or just consigned to sell them and they actually have no money put into the vehicles themselves?
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But are car prices typically higher at a larger dealership than a smaller one? I would think there has to be, or volume is responsible for making up the difference. Is there a huge difference between what dealerships pay for a vehicle or do they even purchase the vehicles or just consigned to sell them and they actually have no money put into the vehicles themselves?

 

In most cases, you can probably get a better deal at a smaller dealer as they value the individual and will take a bit more off the front end to earn your business. However I'm definitely not an expert so my opinion should be taken as observation and not fact.

 

EDIT: We buy the cars at invoice and sell them at $xxxxx. We can do dealer trades and even buy other cars outright from competing dealers. For instance, with the impending death of the Mercury brand, every Lincoln/Mercury dealer is trying to get the Mercs off the lot by Jan 1 so every dealer is open to trading them. However, a dealer with a shortage of Lincoln MkZs will probably not trade an MkZ to another dealer in the same town in the hope that the prospective customer will come to their dealership.

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In most cases, you can probably get a better deal at a smaller dealer as they value the individual and will take a bit more off the front end to earn your business. However I'm definitely not an expert so my opinion should be taken as observation and not fact.

 

EDIT: We buy the cars at invoice and sell them at $xxxxx. We can do dealer trades and even buy other cars outright from competing dealers. For instance, with the impending death of the Mercury brand, every Lincoln/Mercury dealer is trying to get the Mercs off the lot by Jan 1 so every dealer is open to trading them. However, a dealer with a shortage of Lincoln MkZs will probably not trade an MkZ to another dealer in the same town in the hope that the prospective customer will come to their dealership.

 

 

Mercury is getting the ax?

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But are car prices typically higher at a larger dealership than a smaller one? I would think there has to be, or volume is responsible for making up the difference. Is there a huge difference between what dealerships pay for a vehicle or do they even purchase the vehicles or just consigned to sell them and they actually have no money put into the vehicles themselves?

 

techinally yes. We are a small lot that is not normal by "standards". We wholesale 150-200 cars a month. With that being said we can typically buy cars cheaper than most dealers, because we sell the dealers cars that are up and ready to sell (all recon done). So we of course make a profit at that, then they make their profit.

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