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Why is buying a car more expensive from a dealership than a private party? Isn't $1000 more too much?
I've been looking into buying my first car, a used 1994 honda del sol thats from a dealer, but he wants 1000 dollars more than the market value for the vehicle. According to Kelly Blue Book, its private party value is $3,500, yet this guy is charging me $4,500. Why is this guy charging me so much more?! I've tried to negotiate with him to drop the price, but he refuses. Also, I am being charged $500 for some sort of license and smog fee. Could someone please explain what these $500 dollar fees are? But altogether that is $5000 total. Is this guy ripping me off? It sure seems like it. Thanks for your replies!
typically with cars in the range from 5,000-20,000 a car at a dealership is going to be 2000 dollars more expensive... but you can always negotiate with them to some degree... so him charging you 1000 more isnt that bad since that car holds its value in todays market even.. as far as the smog thing goes i have no idea since we dont have emissions in my state... i hate buying from dealerships.. the cars are crappier usually since they are from an auction and usually have had damage... (even though they wont tell you since it was never reported) either way i wanted to add that the market value of the car is not the private party value... its the retail price.. and thats what dealerships go by...
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