What do car dealers really do?
In many cases comes at the end of the journey the question of a good car dealer. Here, in our opinion, but there are many things to consider.
The whole thing is easier to understand once you realize how a car dealer earns his money.
How does a car dealer make money
A car dealer normally makes money to buy a car and sell it for a higher price. A few car dealers are also upgrading cars, for example by rebuilding them for backpackers or certifying self contained. But as a rule, a car dealer earns his money once with the purchase and sale of cars.
How do I find a good car dealer in New Zealand
If you've read through the paragraph above, then you probably now recognize the problem of finding a good car dealer. From your point of view, a good car dealer should probably give you as much money as possible for your car. Only a good car dealer gives you from his point of view as little as possible, his profit is indeed in the difference between buying and selling. So your goals bite a bit.
When can I sell my car best
The best selling is to get your car in Auckland, where most travelers and backpackers arrive and start their journey. The demand for good and cheap cars is correspondingly high here all year round. Self-contained cars always sell a bit better than a comparable non self contained. The best months for sale are from October to January. Thereafter, the demand falls due to the approaching winter. But with the right price, you can sell your car well all year round in Auckland. The sale in Christchurch becomes more difficult. For the summer season, a sale works in Christchurch, but here start significantly less backpackers their trip, so the prices are usually lower than in Auckland.
How much is my car really worth
A difficult question is the right value of your car. In New Zealand, the value of a car fluctuates very strongly over the course of the year. Feels like you pay 100% in the summer and get in the winter between 25% – 50% of the original purchase price.
But there is a good calculation with which you can find out the minimum amount you should get for your car.
Expect per day that you owned your car which would have cost a super cheap rental car (usually 20 NZD / day). Then calculate what you have spent on your car when buying and add all the costs you have spent on maintenance, repairs and car insurance. From this sum subtract the “fictitious” rental costs. That would be the sum you would have spent without getting a penny again.
In the end, probably a small sum remains over and should be worth your minimum. If you stay exactly one year you should get your car for a fairly identical price again. Only if you stay shorter do you have to start calculating.
Photo by Brina Blum on Unsplash
Share your experience with us
You found a dealer where you bought a good and cheap car? Or you found a dealer who paid you a fair price for your car?
Then we look forward to your comment with the name and address of the dealer in the comments, so others can benefit as well.
Questions, ideas or suggestions
Do you have any questions, an idea or other suggestions for us? Then we are also pleased about a comment here under the article. Thank you.
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