Many may ask, can used car dealers really make that much money? The answer is yes. Data shows that used car dealers enjoy significant profit margins when buying and selling cars.
1. The Huge Gap Between Purchase and Sale Prices
Used car dealers typically purchase vehicles below market value and sell them to consumers at prices above market value. This significant price gap is the primary source of their profits.
2. Specific Case Study
Take a used car worth 50,000 Yuan as an example. A used car dealer might purchase it for 20,000 Yuan and sell it to the consumer for 50,000 Yuan, earning a 30,000 Yuan profit. This profit margin is not uncommon in the used car industry.