I’ve recently came across a great website on the topic of buying a car with bad credit. It seems that there is much more to learn about bad credit car buying than anticipated. With interest rates, down payments, trade equity and a long list of other variables that go into each different car sale, it’s quite complex. The site did provide me with good information that broke each individual topic down so that it was understandable for even someone like me.
One of the topics covered was about trade-ins. I had no idea that dealers could actually “hold back” on the value of my trade-in, and that it added profit to the sale of the vehicle I was buying. I think most people are like me, in that they anticipate the profit of the car sale to be made on the difference between the dealer cost and the sale price. Not the case apparently.
Dealerships make profit on interest rates and trade-ins as well. This was news to me, but very pleased that I was able to find good information about this. Anyone that is in car shopping “mode” and that has bad credit should definitely do their research if they want to make a wise, educated decision about their purchase.