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Think about the math......... Posted by andy [Email] (#759) [Profile/Gallery] (more from andy) on Fri, 23 Apr 2004 18:32:34 In Reply to: Private sellers vs dealers...., Mike Lynch [Profile/Gallery] , Fri, 23 Apr 2004 17:51:12 Members do not see ads below this line. - Help Keep This Site Online - Signup |
A dealer probably has an interest only, secured by inventory revolving credit line, so his cost to carry inventory is much lower than the buyer's cost to finance and own. He has staying power and attracts emotionally driven buyers. For every $10,000 asset in inventory, interest only at 6% is only $50 a month to hold a car until a buyer comes along. If you are paying $375 a month against your loan, you can't compete.
You have specific needs, can't offer a warranty and must discount to match the dealer's power. That's why I love buying used cars at private sales - done right its worth the risk!
92 900S 5sp 199,575 miles
97 9000CS 5sp 85,120 miles
posted by 216.179.3...
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