2.17.2005

The Car Buying Food Chain

We're in the market for a car, as I'll need one to commute to work on a daily basis. There's a very well defined food chain. At the top is the new car dealer. These guys take some trade-ins as part of their daily business. Anything that they can sell for 10000 or more, they'll keep on their lot and sell. Anything else, they'll sell to a used car dealer.

The used car guys tend to specialize in certain cars. We went out to the sticks to see a 97 Passat today, but it was bought out from under us. Anyhow, Richie the car dealer explained to us that he specializes in Caddies and Lincolns. He buys from a couple of new car dealers, three or four cars at time. At times, he has to take some other cars to buy the Caddies that he wants. That's how he ends up with the occasional Passat or Saturn that he got from Joe Smith Cadillac/Saturn/Volkswagen.

Now if Richie can't sell the Passat or Golf or whatever non-Caddy, he takes it to the auto auction where someone who specializes in VWs might buy that car for resale to the consumer.

Lots of middlemen between the car and you the consumer. We're looking at some Jettas tomorrow. We shall see how it works out.

1 comment:

Anonymous said...

DO NOT BUY A VW. Every VW I know has has horrible things happen to its electrical system after the car is paid off. Somehow those pesky Germans have engineered a car that knows when it owns you and it gets even.

Your evil brother,
Willy