Q: Should a used car lot offer warranties?
A: Offering a warranty on a used car gives buyers peace of mind, but lots aren't obligated to do so. They are, however, required by law to inform the buyer if the car comes with a warranty or is being sold “as-is.” Even if a lot doesn't offer a written warranty, state laws can hold dealers responsible for selling vehicles that don't meet basic quality standards.
Q: Is trading in a car profitable for a used car lot?
A: Purchasing a car as a trade-in is almost always profitable for used car lots. Dealers appraise a car's value based on age, mileage, cosmetic damage, and mechanical condition, then offer the customer a rate that's less than the vehicle is worth. Even so, the price is often attractive to buyers who are eager to get rid of the car and buy a new one.
Q: Why do car salesmen use techniques like disappearing to talk to their manager five times during a car sale?
A: In some cases, salespeople disappear to talk to their manager to negotiate a car's price and other terms. This can also be a tactic to wear the customer down, which makes them feel as if they've spent too much time at the dealership to back out of the sale.
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