When is the last time you seen a dealers real cost on what they pay for the cars they are selling as “used”? Did you know that 98% of the dealerships in the USA make the majority of their money from used cars? That is why there is so many of those little 25 car used auto dealers. And it is easy to not even use them at all and avoid the 300% mark-up.
Auto Auctions are the best places to go and save money. The reason you can save is because this is where you can beat the dealers. They have an agenda when they go there. They want to find a car that is low in cost that has a high NADA (National Automobile Dealer Association) resale value. This book is available online and is used in almost every automobile transaction from buying to selling and is even used in the determination of what your car is worth to an insurance company. The NADA is similar to the KBB (Kelley Blue Book) and does contain somewhat the same information. I think that the NADA book is swayed more for the dealers because they after all are the NADA’s biggest clients.
But in today’s day of the internet, the ball is in your court and it does not matter what book they use. You now have the power to beat them. Auto auctions in the past required you to have a dealer’s license. But on the internet you don’t need one. There are a number of web sites that deal with the internet auctions and they have grown to realize that the dealerships are not the customers, we are. So now, these web sites cater to us and not the big boys. This is where you save.
I recommended that you look into getting into the internet auction games. There are several different types but for the most part, they are all the same and in the end, you will save money. If you think about it, you can make money by becoming your own dealer.
Either way you do it, just remember to look into the Kelly Blue Book and the NADA guides web sites. They will save you a lot of work.