Buying a car can be quite daunting, especially when you are off to buy a used car. There are so many points that you must keep in mind and way too many decisions to be made. A pre-owned car does not necessarily mean a car that was made in the early 90’s and covered in rust.You might be surprised that some are merely a year old. Your mind may be swarming with hundreds of questions about used cars and how the entire process actually works. We are here to answer few of those questions.

Q1: If a car dealer sells a car close to its statement price, how can they possibly make a profit?

Ans: The manufacturer actually gives a refund directly to the dealer or agent. A dealer can make profit from financing the vehicle in addition to selling it. They also make money from service and parts departments. The dealership receives something called a “kickback” or “holdback” from the vehicle manufacturer for selling a fixed number of cars. There are many dealers of second hand used cars in Mumbai, which run an excellent business.

Q2: How much concession can one get if they pay in cash?

Ans: Now, it might be surprising for you to know that paying in cash may not always be beneficial to you, since you will be paying a lot more than what you would be paying when compared to financing option.

Dealerships actually earn money from financing, so if you pay in cash, it affects the dealer profit. So, if you plan to pay in cash, make sure you make the dealer realize that you are offering him an easy sale so that you are not ripped off by them.

Q3: What if one wants to opt to buy a popular car – what kind of car negotiation can they expect?

When one decides to get a pre-owned car, it is important to know that it is not very easy to get discounts on them. The pre-owned car is valued depending on the mileage and vehicle condition. So, don’t be too sure to get a heavy discount when you are off to buy a used car.

A piece of advice: As per the famous saying, patience is a virtue that applies to car buying also.