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>I think this ignores the fact that used car sales are one of (if not the) largest revenue source for dealerships. No, they're not. New car trades are liquida
by blhack 13y ago
>I think this ignores the fact that used car sales are one of (if not the) largest revenue source for dealerships.
No, they're not. New car trades are liquidated at auction houses.
Source: I work in the automotive industry.
- driverdan 13y agoThe margins on used cars are many times those of new cars. Most dealerships do make more money from their used cars unless they are very high volume.
- jmatthews 13y agoMost used car models are based on retailing a high percentage of dealer trades as they are the highest margin source of inbound vehicles. Easy source checks are any research on CarMax, a light review of any of Pollacks books(Velocity, Velocity 2.0, Velocity Overdrive) Source: I am also a domain expert in the auto industry.