Hold back, floor plan assistance, and advertising assistance add thousands of dollars to the sale price of a car.
Car dealers often mark up the MSRP, resulting in higher prices for consumers.
Hidden fees, such as doc fees and miscellaneous charges, can significantly increase the cost of buying a car.
Understanding the buy rate of financing options can help negotiate better terms and save money.
Window etching is a useless add-on that car dealers try to sell for high profits.
What is hold back?
—Hold back is a hidden profit that car dealers receive from the manufacturer, which can range from hundreds to thousands of dollars per vehicle.
Why do car dealers mark up the MSRP?
—Car dealers mark up the MSRP to maximize their profits and cover various costs associated with running the dealership.
What are hidden fees?
—Hidden fees are additional charges imposed by car dealers, such as doc fees and miscellaneous fees, which are often undisclosed or misrepresented to customers.
What is the buy rate in financing?
—The buy rate in financing refers to the interest rate that the dealership pays to the bank for arranging the loan, which can be marked up to generate additional profits.
Why is window etching considered worthless?
—Window etching is considered worthless because it offers little to no value for car buyers and is often sold at an inflated price for high profits.
04:47Hold back, floor plan assistance, and advertising assistance add to the profit margins of car dealers.
06:30Car dealers often mark up the MSRP to increase their profits.
08:22Hidden fees, such as doc fees and miscellaneous charges, can significantly impact the cost of buying a car.
09:40Understanding the buy rate can help negotiate better financing terms.
10:59Window etching is considered worthless and is sold at inflated prices for high profits.
