In fact, salespeople don't like customers to buy cars in full. Why? Today, I will tell you about various routines of car sales. Let's take a look at which is better, buying a car in full or buying a car with a loan, and why buying a car in full is not popular with dealers.
Buy a car in full
It means paying all the money at once, and then you can pick up the car and leave. Generally speaking, in addition to the bare car price, the full car purchase also needs to pay insurance premium, purchase tax, travel tax and licensing fee.
Among them, the price of naked cars will fluctuate, so it is easy for us to know the specific discounts of dealers online, so the price is quite transparent to consumers, but the actual discounts at the store are usually not as much as those displayed online. After all, it is the biggest discount that can only be enjoyed if it meets a series of requirements such as old car replacement.
Purchase tax and travel tax are compulsory consumption, and dealers can only start with insurance and licensing if they want to make money. But why do dealers want to make our money? Shouldn't the profit from selling cars at ordinary times be quite large? Let's continue to reveal the secret.
Why is it not popular for dealers to buy a car in full?
In fact, the profit of dealers selling cars is very low, most of which belongs to manufacturers, and the rest is obtained by dealers themselves. It is pitiful to be assigned to the sales staff at this time. If everyone buys a car in full, it is difficult for dealers to support themselves on such a small profit.
In order to make a living, dealers can't just sell cars, such as the most common after-sales maintenance, selling auto insurance, helping customers get licenses, loans, used cars and so on.
Therefore, when a customer buys a car in full, the discount given by the dealer is usually less than the loan to buy a car, so as to make its profit higher. At the same time, customers will be required to buy insurance, license or install optional packages in the store, because sales can charge rich commissions such as insurance rebates, while dealers can earn spare parts fees and working hours.
In fact, this is also related to the dealer's sales strategy. Usually the sales in the store have business objectives every month. For example, it is required that five customers must borrow money to buy a car in the store that month, and each customer has a corresponding commission. Then, in order to get the commission, the salesman took the initiative to make these demands to the customer.
But buying a car in full is far more than that, because dealers want to make more profits, so they often recommend customers to buy a car in another way, that is, to borrow money to buy a car.
Loan to buy a car
Buying a car with a loan costs two yuan more than buying a car in full, which is the loan service fee and loan interest.
At this stage, dealers strongly recommend loans to buy a car. In order to attract more customers, the discount is usually larger, but the indirect profit for dealers and sales staff is very huge.
In addition to the profits mentioned above, such as insurance, licensing and decoration, dealers can also earn these money:
First of all, the dealer will charge the customer a loan service fee, which is about 3-6% of the loan amount (usually ranging from 3,000 to 5,000 yuan), as a reward for the dealer to help the customer handle the loan.
Moreover, dealers usually refer customers to the financial institutions they cooperate with for loans. If the loan is successful, the financial institution will give the dealer a certain rebate, and at the same time, the sales will also get the corresponding commission.
These two incomes are worse than the profit of selling a car alone. So now it is clear why dealers are so taboo to buy a car in full, but they will take the initiative to let customers borrow money to buy a car.
About buying a car at zero interest rate
As the name implies, choosing a zero-interest car means that when the owner buys a car with a loan, he does not have to pay the interest generated by the loan, which will be paid by the car company. At first glance, it sounds extremely beneficial to the majority of car buyers with loans, but is there something fishy about it?
Yes, although car companies ostensibly pay interest for car owners, they can earn it back in other ways for profit. For example, increase the loan fee, require car owners to apply for full insurance when purchasing insurance in the store, reduce the price discount of naked cars, and charge information consultation fees. And this part of the money earned is even much more than interest.
But then again, it doesn't rule out that some conscientious car companies take the means of small profits but quick turnover to really benefit the people. If it is clear that there are no other excessive extra expenses, zero-interest car purchase is still worth recommending.
In today's car buying market, dealers, insurance companies and banks are United front, trying their best to make money from consumers' pockets. The profit of naked cars is no longer a big head, but a series of consumption generated by consumers around buying cars.
Therefore, I think, whether buying a car in full or with a loan, there are definitely advantages and disadvantages. As long as we measure our situation well and have a shrewd mind, we will certainly be able to choose the most suitable way to buy a car.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.