Quote:
Originally Posted by sugarwood
Here is another question. How much money does a dealer want to make in order to bother trying to flip a car in the first place? Would they bother for $1000?
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Most new car dealers do not keep trades, they have contacts who take the risk of buying whatever gets traded in sight unseen.
The money is made from risk - the dealer calls the person who takes their trade ins, gives years, mileage, and the trade in buyer makes an offer sight unseen. Sometimes they get hosed by unknown problems, but they do enough volume, the benefit out weighs the risk.
As an individual, would you want to buy a car beyond model, year, and mileage? No inspection, sight unseen? They have a chance at profit, because the person wanting to dump the trade in needs to sell it now, the dealer doesn't want it, so it sells at a sight unseen price, with a high risk they just bought something crappy.