actually buys or sells any type of vehicle—they just predict what carsTIP: It is critical to remember that no Blue Book company^
and trucks will be worth.
It is also important to know that most lenders use only determine the amount they will loan. You need to know which one your one book to (^)
lender uses. It affects the interest rate, finance amount, and loan term theywill offer you.
PROFIT MARGINS & ADVERTISED PRICES
Used car profit margins—just like most new ones—aren’t as high as mostconsumers think. According to data from NADA, the average gross profit on (^)
used cars last year was just over $2,200, but that included profits made inthe finance and insurance office—which can be minimized using the tips in (^)
Chapter 6: The finance office. Take those out and a dealer clears just $800-$1,500 on the actual sale of a used car. Most dealers will start higher than
that, of course. Some still ignore the market and ask all they can, but themajority are savvy enough these days to know that if they don’t set their ad (^)
prices close to others’, they won’t get anyone to come see their vehicle.This is known as “market-based” pricing.