How Do Car Dealers Make Money

Before you go buy a new or used car you should know where the car dealer is going to try to make money on your purchase.

This is a common concern for most people buying a car. People tend to be hesitant in making their purchase thinking that the dealer is trying to cheat them out of extra money. The car dealer does have the right to try and make money. They are in business and have to pay their workers and keep the lights on. However, you as the consumer also have the right to get the best deal that you can work out.

Research before you go anywhere. If you are reading this article you most likely have the internet. Check around online for prices, features, etc. Print and compare all your data.

You should take your time and shop around to get an idea on what the going price is for the vehicle you are interested in. Be sure to note any key difference in the deal. Some cars may have different packages already built-in such as a DVD player or navigation system. This can cause a price difference between dealers.

Do not forget about add-ons such as protection for the vehicle, warranties, etc. In the end, anything extra outside of the purchase price is your decision. The best thing is to research and consider to situation of whether the benefit outweighs the cost.

Here is a great article by Philip Reed of Edmunds.com  - Where Does the Car Dealer Make Money?

As you can see with the article there are many places the dealer can make money in the deal. Being informed is your best approach.