Laws of Economics Apply to Car Buying

The Laws of Economics Always Apply

Keep in mind that the basic laws of economics apply even at the car dealership. If the supply is higher than the demand, then the price will fall. If the supply is lower than the demand, then the price will rise.

Translated? If the dealership has three Ford Mustangs left and you’re one of many shoppers bidding for one, the dealer will laugh you out of its showroom if you offer to buy it anywhere near invoice. On the other hand, if the dealer has too many F-150 pickup trucks, then they probably will cut you a deal to help reduce the inventory.

The same goes for trading your vehicles in. If you’re trying to get rid of an old white pickup and take it to a dealer that has too many of them already, don’t expect to get a great deal on your trade-in. Shop around for a dealership that would be more interested in your vehicle. Sell it to them, even if you are buying from another dealer. You will make out much better this way.

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