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Joined 2 years ago
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Cake day: August 14th, 2023

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  • A- 10,000 dollar car

    B- 50,000 dollar car

    Intrest is 5-15% (depending on credit score)

    6 years loan

    Interest paid over loan:

    5% A- $1,595 B- $7,977

    15% A- $5,224 B- $26,122

    If the dealership sells a 50k car they can get 6.5k-21k more money than if they sell a 10k car.

    They want to sell you the most expensive car they can

    So even if they could sell you the “cheap” Chinese EVs they would make less profit

    This is just one reason. Sales margin is another. When you’re a Ford dealership and get special treatment from Ford you have higher profit margins. If you just flip a Chinese EV with no special treatment you have lower margins.

    If there was a solid 10k car available less people would buy the 50k car (average cost of a new car today)

    Inexpensive cars on the US market is not good for dealerships in anyway