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Tips When Looking For a Used Car to Buy.

Tips When Looking For a Used Car to Buy.

June 26, 2022 at 7:34 am 0 comments

These tips can help you find a used car that will be right for you.

 

1) Plan all your moves carefully.

 

Buy a car that is meant for your needs; this means getting in and out of the vehicle quickly and being able to park it almost anywhere. Ensure there are no leaks that can lead to water damage under the hood or the car seat. Get rid of any squeaks or rattles that might make you feel uneasy while driving, as these could be signs of other significant issues. Check all lights, including side-view mirrors, headlights, and taillights, to ensure they’re working correctly. Read up on the model before purchasing to see if there are any issues the seller is aware of with the model (for example, warranty expiration date).

 

2) Find dealerships near wherever you live and shop around. 

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3) Consider buying from someone who has been in business for a long time. This can be helpful when considering which used cars in hollywood fl may need more work or older models should not be bought at first because they have been well taken care of over time by previous owners. A new dealer to the game may not have had time yet to repair cars properly if they have been fixed recently under warranty by their manufacturer (for example, Honda). It is best to avoid such cars until they receive service from an established dealer very soon after purchase; this assures more quality services overall.

 

4) Inspect the engine, transmission, and braking systems.

 

5) Drive the car and perform various maneuvers, such as aggressively shifting through the gears. This helps to detect any problems with the car’s driveability. Find a piece of middle equipment (such as fourth), and shift up several gears at once to see how the car responds. For example, you may want to move from first gear to second to feel how well your driving skills are adapting to this new revving model of a vehicle. Check for clutch slippage by accelerating in first or second gear by foot while holding down the gas pedal (alternately, you could also try using your hand on the shifter).

 

6) Listen for noises – Do not count vibrations/rattles as noise but as signs of potential issues that a mechanic should check out immediately to keep you safe. If you start hearing noises or noises change over time, be sure to have the vehicle brought in for a thorough inspection.

How much does a dealership make on the sale of a used car

How much does a dealership make on the sale of a used car

June 23, 2022 at 12:36 pm 0 comments

It is erroneously thought that if a dealership buys a car for € 10,000 and then sells it for € 12,000, it earns € 2,000 net.Nothing could be more wrong and far from reality , those who think in this way have no idea what the real costs are on the purchase and sale of a used car by a company with a regular VAT number used cars in montclair .

Practical example of dealership live costs

Practical example: a dealership buys a car for € 10,000 and after a couple of months sells it for € 12,000, thus creating a capital gain of € 2,000 The capital gain of € 2,000 must be divided as follows: € 1,636.00 represent the tax base for taxes , while € 364.00 represent the VAT to be paid . So in summary, out of 2000 euros of margin (capital gain), 364 must be paid to the state for VAT and 572.60 (assuming the lowest margin or 35%) must be paid to the state for taxes (taxes).

Therefore, on a hypothetical “gain” of € 2,000.00 between the purchase and sale of the car, in fact in the pocket, after tax and VAT are deducted, € 1063.40 remains to which the aforementioned mandatory out-of-pocket costs must be deducted (mini transfer, coupon and guarantee), in addition of course to management costs (rent, insurance, personnel, etc.).

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Numbers in hand, the following is the best profit hypothesis for a dealership on € 2000.00 of capital gain:

Profit after taxes and VAT: € 1063.40

– 115 € for the mini transfer

– € 150 for the coupon

– € 200 guarantee required by law

Total without deducting management costs:  € 598.40

The concessionaire takes the full business risk

We have seen how mathematically, of those famous initial € 2,000 , the dealership temporarily remained “in his pocket” € 598.40 , but we have not yet deducted the management costs (rent, insurance, personnel expenses, etc.) which are difficult to quantify. , precisely because they vary from company to company, but that any company must support in order to maintain its sales structure.

Also keep in mind that a used car is sold on average after 57 days , but there are cars with little market that remain in stock for more or less long periods, in this case the dealership could risk zeroing the profit margin and even exit.