Quote:
Originally Posted by NotFast
Around here, I can buy a new 1SS 1LE for roughly the same price as a used model. Dumb.
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Not really... Dealers make their money on new cars through a combination of actual profit margin, add-on's in the finance office, and back-end cash from the manufacturers for meeting their sales goals. That means that the actual selling price of the car can be closer to their cost because there are other areas they can generate profit.
With a used car, they can either sell an extended warranty or put it through a CPO process. If they're selling a brand they can't certify, then it's either an increased profit margin over cost or an extended warranty. And, think about it... Would you rather pay more for a car that's being sold as having no issues, or save a few bucks and "need" the extended warranty?
Quote:
Originally Posted by Redlinez
Covid has driven used car prices at dealers through the roof. I've worked at new car dealers since 1995. Supply and demand. Seen the same thing with guns and RV's.
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Used cars as a general 'product' have increased in value. Specific models have to be looked at through an individual lens, though. Weekend cars (sports cars, muscle cars, etc.) are NOT increasing in value because the market is seeing an influx in inventory from cars being traded for more economical models, consolidations of multiple vehicles down to one, or repossessions.