4 ms·
One point that your write up doesn't take into account is that a car dealer can get more for a car, the same, car, in general, than a private seller can. A car
by larrys 13y ago
One point that your write up doesn't take into account is that a car dealer can get more for a car, the same, car, in general, than a private seller can.
A car dealer can put a short or longer term warranty on a car that gives a buyer confidence.
If you are buying a used Honda from a Honda dealer who is reputable (and my guess is that is 99% of them are or they wouldn't remain franchised), as opposed to the local used car lot, you generally and on average are going to have better purchase security than buying a car from a stranger that does not come with any warranty or guarantee.
A car dealer also has (in theory) experienced salespeople who know how to drag the most money out of a buyer and exploit their weaknesses. You as a private seller don't. So you will (on average not the exception) not be able to get as much for the same car as the dealer will.
This is not to say that the idea presented by the OP won't work (because they appear to be adding a level of guarantee to the deal). Just that in the example you are giving there are reasons why "you buy a used car for 20k". Reasons that are separate from what you would get if you tried to sell the same car for 20k.
- ValG 13y agoHey Larry, 1. Warranty - We've actually talked about a lot of these items, including adding a warranty on top of the cars we represent. We'd be able to do this because we do a mechanical inspection on each car. The 1 thing we can't do is add CPO (that's manufacturer only). 2. Experienced Sales People - sales person turnover is roughly 50% per year at the average dealership. Because of this, dealerships don't spent money on sales person training. Experienced sales people are difficult to get. We're working on it and want to add more value than dealerships for less! I'd love to talk more. If you're interested, please email me at val@instamotor.com
- teh_klev 13y agoWhat's CPO?
- adestefan 13y agoCertified Pre-Owned.
- rhizome 13y agoWhich means it's kinda BS and so the independent market can invent their own certification. Bonus: find ex-dealership mechanics who can advise in compensating for imperfections in the CPO process, increasing the value of the independent cert over the manufacturer one.
- larrys 13y ago"it's kinda BS and so the independent market can invent their own certification." Exactly. Exactly. (2x for emphasis). (Although there is value for sure to the warranty part. They can invent their own word and certification. But they also need to provide a warranty for sure. What you are really getting is the fact that someone is standing behind something. You are getting a warranty. And so it's a fancier way of describing a warranty. After all who really cares about the inspection part if someone is saying they will fix things? For BMW: http://www.bmwusa.com/Standard/Content/CPO/Warranty.aspx http://www.bmwusa.com/Standard/Content/CPO/Warranty.aspx