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Can auto dealers sell a auotmobil knowing that they are selling it for more then it's book price?
8 Answers
- 1 decade agoFavorite Answer
Book value on a car does not dictate it's selling price. There are several "book values". If you are talking about kbb.com, they are a commercialized website that sell ad space, not vehicles and have no bearing in the market place.
If you are talking about NADA or retail loan value, they state what the loan value of the car is, however a dealer can ask over the price if they so choose. The only thing is if you purchase a vehicle over it's loan value, you might have to put money down in order to secure lender financing. I hope this helps.
Source(s): Lead Programmer for The Auto Evaluator http://www.theautoevaluator.net/ - 1 decade ago
The book price of an automobile depends on the book. Just check out popular sites like KBB, NADA, Edmunds, etc. They all have a different price for the same car. There is no regulation in the automobile business, in the US at least, that regulates the cost of a used car. New cars have manufacturer's suggested prices, and although they are only suggested, it might be possible to file a successful complaint if you purchased a new car for more than the MSRP and the dealer did not provide you with services or goods that justified exceding the posted price. Many used cars are worth more or less than guidebooks recommend. The "books" are only guides for buyers and sellers, and very few have much basis in actual sales. Typically, foreign cars are undervalued and American cars are grossly overvalued. Since many sources are connected to the American automobile business and manufacturers, it is not that surprising. anyway, last I checked, books don't buy cars anyway.
- 1 decade ago
Yes they can they will run into problems getting it financed unless you A. have good credit or B. they use in house financing. The typical person with an average credit score can finance roughly 125% of the trade in value. If you have bad credit you can only finance about 80% of the trade in value. That is the reason that people with bad credit are usually required to put large sums of money down. I sold cars for 4 years and yes I sold a few cars for much more than they were worth. Does that make me a bad person I think not because the consumer could have negotiated but chose not to or did a very poor job of it. By the way Kelly is an idiot.
Source(s): personal experience - TessieLv 41 decade ago
They will sell it for as much as they can get. And they can sell it even if they know it's a lemon. Get some help from someone who knows cars before you buy.
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