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Discussion Starter #1

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Price IS too high by about 4K. It is a nice car. I wouldn't buy one without the B&W sound system. I like my 2017, optioned just the same way, Crystal White but with Amber....do you need the length of the 2018? I didn't.
 

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Price IS too high by about 4K. It is a nice car. I wouldn't buy one without the B&W sound system. I like my 2017, optioned just the same way, Crystal White but with Amber....do you need the length of the 2018? I didn't.
Yes the length was very useful to me :)
 

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Discussion Starter #5
Well because the car has creeks the leather is very fragile the Sensus is slow compare to 2019 and up models the are few small dings that they dont show it on the picture. You can get same car from Carvana or vroom or other non volvo dealers for 34-35k. When i did appraisal for trade in i was only getting offers 29-30k. I never saw a dealer give you 29k for you trade in and make 8k on the car. mostly it was 3-5k that dealer makes. 2019 and up cars much worth to buy than 2018 since 2019 has tons improvements over 2018. Its not even certified car if it was than 38k is fine i guess.
 

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Dealers pay lower lease buy-outs than consumers. As I recall, there always have been higher profit margins for used cars than for new ones. To maximize profit and minimize inventory carrying cost dealers go for new car volume to get higher hold-backs from the manufacturers or importers.

Also, what you saw is an asking price, no one knows what the ultimate sales price will be. Absent price controls the "correct" price of anything is what buyer and seller agree on.
 

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Discussion Starter #7
Dealers pay lower lease buy-outs than consumers. As I recall, there always have been higher profit margins for used cars than for new ones. To maximize profit and minimize inventory carrying cost dealers go for new car volume to get higher hold-backs from the manufacturers or importers.

Also, what you saw is an asking price, no one knows what the ultimate sales price will be. Absent price controls the "correct" price of anything is what buyer and seller agree on.
Agree but still kinds bald move to put 8k more :). Good thing i removed my rubber mats and mud flops that i got my self or they would add another 500 for those lol
 

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They aren't always less than the buy out... if the returning dealer doesn't buy it, then it goes to auction... used cars are expensive right now, so there really is no way to know what it was purchased for. But if it's certified, that costs almost a grand directly to Volvo, plus any repairs needed to get it to meet spec. We take pictures of cars as soon as they come in and start marketing them, but it doesn't mean we're not doing more for reconditioning. Of course, different dealers have different standards that they recondition too... Comparing a Volvo CPO to a 3rd party isn't a straight figure, and no price guide treats them the same either. We don't just buy a car and sell it without putting some investment in. Yes, we generally make more money on used cars than new ones, but it's not quite the difference is pure profit...

A dealer marketing a car right in the middle of the fair purchase price range isn't "kind of too much".
 

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I was not complaining, just observing some economic facts of life. Dealers have overhead and need to make a profit to stay in business. I may be wrong, but I think a lot of net profit comes from used cars and hold-backs. At least that was true a few years ago.
 

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I was not complaining, just observing some economic facts of life. Dealers have overhead and need to make a profit to stay in business. I may be wrong, but I think a lot of net profit comes from used cars and hold-backs. At least that was true a few years ago.
That's 100% true.. but they're still just listing it at the market price.

Used cars have the most profits for a dealer hands down. We sell more extended warranties with em, while I mentioned there is a cost to getting them up to snuff, that also does represent profit for the service department. With that, they do need service work sooner in most cases than new cars, so the customer growth will represent a higher service profit (warranty or out of pocket). When we trade one in we avoid the costs of transportation too.

New cars, there is holdback, but that really goes to pay the overhead. Yes it can still be profitable, but we're paying interest on the inventory sitting here, lot damages happen, dealer trades happen, then you gotta pay for the showroom, real estate, taxes, etc. And they even pay me and my manager (no finance person at least here!) The money gets used up quick.

Plenty of publicly traded dealer groups if you want to get in on the action =-D
 
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