Don,Assume,Car,Dealers,Are,Rip car Don't Assume Car Dealers Are Ripping You Off


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Recently, the National Automobile Dealer Association (NADA) conducted a surveyexamining the profits of car dealers around the country. The survey found that only oneand a half percent of car sales yielded a profit, while more than 20% ofdealers reportedly lost money. Another finding in the survey was thatforeign auto dealers are faring somewhat better in the current market placethan dealers of domestic cars. Needless to say, car dealers have many new challenges.Consumers have more choices than ever, and the economy and price of fuel hascontributed to an abrupt shift in buying habits and demands. For example, amongdealers selling domestic makes such as SanAntonio Ford,inventory of full-size trucks and SUVs like the F-150 andExpedition generally had no trouble selling in recent years, but inrecent months have been increasingly difficultto move off the lot, even with attractive incentives. Instead of newcar buyersgravitating towards large vehicles and sport utility vehicles,consumers arenow looking to small, efficient cars and crossovers. Those dealers thatsell brands with a full lineup of economical and even “green” offeringsaretherefore reaping more of the benefits.  But even dealers with plenty ofhybrids or high MPG models are not on stable ground as nationwide car sales aredown overall, with June marking the lowest point in auto sales in over a decade.In such an adverse environment, car dealers such as our Ford San Antonio example are changing their ways in order to stayprofitable. Dealers are reducing the amount of new hires, reducing customerperks and the availability of loaner cars, and streamlining operations to helpsave money. In addition to generating less moneythan what’s perceived by consumers, much of the money auto dealers do make on avehicle goes back into the dealership. Like most businesses, income needs to bereinvesting back into the business to help it grow, whether it means newfacilities, employee benefits, or increasing inventory. Revenue from an entiresale is not simply pocketed by the sales person involved.Thedramatic changes in the automotive industry have caused car dealers tohave vastly different operating strategies. Rather than new cars beingthe main profit center, dealers are now promoting service centers moreand more as they now provide a more steady flow of income. In addition,Used Cars Richmond and other dealers are focusing on their used car inventory more so than their new vehicle inventory.   This is not intended to defend all dealershipsand their practices. The important thing to remember is that consumers shoulddo their homework and utilize resources such as Edmunds.com or Kelley Blue Bookto understand what a vehicle really costs and try to get within reason of thatprice point. Make sure you focus on your deal and feel good about, and don’tworry what the dealer potentially is or isn’t getting on his end.

Don,Assume,Car,Dealers,Are,Rip

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