A car dealer’s main purpose is to sell vehicles to consumers, and that includes both new and used cars. But new and used sales account for only a small fraction of the profits dealers make, with most of their revenue coming from financing or leasing a vehicle as well as from parts and service.
Dealerships also profit from “add-on” products and services like gap insurance, VIN etching, and rustproofing. Often these are added onto your contract without discussion or consent, and they can add thousands of dollars to the cost of the vehicle. Dealers often use the scarcity of good finance managers as an excuse to offer these add-ons, which they know can help them close a sale.
In many states, it’s illegal for dealers to misrepresent the condition of vehicles. That’s why it pays to do your research before you step foot on a dealership lot. Start by defining your vehicle needs and budget and looking at vehicles that fit that criteria. Knowing what you want in advance makes it harder for a salesperson to talk you into something you might not have any interest in.
If you’re buying a used car, always get a full-service inspection at an independent shop before taking delivery of it. This will give you a better idea of the vehicle’s actual condition and make it easier to compare it with other vehicles in your price range. New York requires that a dealer disclose in writing on the bill of sale whether a vehicle has been rebuilt, originally not manufactured to U.S. standards, or has been reconstructed salvage. car dealers