When you plan to shop for a used car from a dealer, the best dealers generally recommend that the buyers should really understand a little about how a dealer arrives at the cost of the vehicle. From the point of view of a dealer, a car with the cost sticker attached to it is the money that needs to be collected. Most of the dealers wish to complete the sales as quickly as possible because they generally spend the money towards buying the car from an individual seller with the help of a bank loan for which interest should be paid by the dealer. When it comes to adding used car prices, some dealers begin by determining their out-of-the-pocket costs.
Out-of-the-pocket expenses added by the dealer:
As the car dealers, we at Wright Auto Sales, generally determine the used car prices after considering the following out-of-the-pocket expenses we generally make towards every car that we offer for sales:
- Generally, regardless of whether we buy the car on auction, from an individual seller or a wholesaler, we pay a price for the same and we consider this as the base amount in determining our sale price.
- Secondly, we add up the expenses we make towards repairing and reconditioning the vehicle.
- We will also add up the interest money we pay towards loan, the commission we pay towards salesman, insurance and of course other overhead expenses.
After considering the above-mentioned out-of-the-pocket expenses, we then decide the used car prices on how much markup to include in the selling cost. Here, the markup amount showcases the condition of the vehicle, its make, model, mileage and of course, the demand available for that particular model in the market.
In addition, at Wright Auto Sales, we are also aware of the fact that every purchaser will feel happy only when they are able to bring down the cost as compared to the advertised cost. This is why we have a cushion for our prospective customers in such a way that they can end up at the cost that they feel satisfactory to pay. Now, we have clearly stated the method we follow in determining the used car prices, such that customers can negotiate accordingly.