Car Dealers Secret Behind Freebies and Discounts

Published: 25th August 2011
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Cars are in great demand these days. Car manufacturers are manufacturing the cars with increased efficiency and better performance. Hence, cars manufacturers are finding great market these days. Most car dealers are also providing great offers and discounts on the purchase of the car. How do these car dealers make profit even after giving such extreme discounts and offers? Here you will know about the freebies and discount tricks of the car dealers.

Freebies and Discounts:

You are surprised many times when you go to purchase the car and see the discounts offered by the car dealer on the car price. Sometimes you can avail the offer by getting any free shopping coupon or any free gift. How do these dealers make profit after giving such huge discounts or expensive gifts?

When Purchasing the Brand New Car:

When you are purchasing the brand new car from the showroom, the freebies offered on the purchase are

Free car accessories like music system or AC

Free insurance coverage

Free car servicing

Exchange offers

Lucky draw coupon or assured gift on purchase of car

The new cars do not come with the car accessories. When you buy a car from the dealer, you have to pay separately for the car accessories like music systems, ACs, bumpers, wheel designs, attractive seat covers, etc.

Many car dealers provide the exchange offers on the purchase of cars. You can take your old car to the car dealers. They will fix the price of your old car according to the market price. Paying the extra amount to equal the amount of new car, you can take home brand new car instead of your old one. This is the most common offer offered by most car buyers.

These car dealers also provide the cars on bank finance. You can pay some amount as down payment for the car and pay the remaining amount with some interest rate by paying monthly EMIs. Doing this, you will be paying more than the actual price of the car but in this way, you donít have to pay the whole amount at a time.

When Purchasing the Old Car:

When you are purchasing the old car from the car dealer, the car dealer will generally provide discounts on the car price. They keep the prices negotiable so that you can negotiate on the price that matches your budget. But you must be more careful while purchasing the old car, as there are more chances of getting cheated. Some of the old car dealers will also provide the offers like

After sales service

Free car servicing for specific number of servicing

Car Insurance

You have seen that some car dealers provide high discounts on the less used cars. This may be because the car must have undergone severe accident that must have caused non-repairable damage to the car engine. It may also be due to the car was drowned in flood and the car engine was damaged due to water logging. Generally, car dealers provide huge discounts and offers for selling such cars.

Free car servicing and after car insurance are the common offers provided by the dealers on purchase of cars.

How do these car dealers manage to provide offers and discounts?

We see many times that the car dealers provide some assured gifts on purchase of the cars. They purchase these gifts in wholesale. Purchasing it in quantity will lessen down the overall cost.

When they provide insurance coverage on the car purchase, they have tie-ups with the insurance companies. In this way, both, the insurance company and the car dealer will be benefited mutually.

Thus, the car dealers attract customers and make business by providing great offers and discounts on purchase of new or old cars.

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