In the spirit of Christmas.

A trusted friend. That’s in the know. Tells me that most car dealers. Make the bulk of their profits in used car sales. Rather than in new cars. That the profit margin for a new car may be as little as $200. But a used car may have a 100 percent mark-up. From what the vehicle cost the dealer. Here’s the way it works. The dealer may have paid $3,500 for the trade-in. And ends up listing the same vehicle on the sales lot for double that price. Granted, the dealer may have spent a few hundred dollars sprucing up the vehicle. To make it more attractive. But still. Here’s the bottom-line. If I pay $6,500 for that vehicle, the dealer may walk away with a profit of $2,000 to $2,500. That’s why there’s far more room for negotiation in the price of a used car than for a new one. The dealer has an option to give the buyer a sizeable discount. Maybe for no profit at all. If the buyer happens to be his dear mother. Rather than me, a dour stranger. Maybe I’m willing to pay the asking price. Without negotiation. Rather than going through the hassle of saving a few hundred dollars. Fact is, however. That I want a better deal. Maybe only for the sake of stubborn principle. Not as good as his mother would get. But better than most customers. Give me a break, I plead. Maybe because the vehicle isn’t in high demand. It’s been sitting on the sales lot for months.  That’s what I’m banking on. Waiting. Patiently. Hoping. That if I wait until the end of the year. When dealers like to have a low inventory. I can get a good deal. For something closer to $5,500. Instead of the original $6,500. If that happens. I’ll celebrate. For having played the game well. Feeling good. The dealer, too, can feel good. Having netted a reasonable rather than exorbitant profit. Under my scenario, we will both walk away as winners. How’s that? For doing business in the true spirit of Christmas. --Jim Broede