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Four reasons why you can not buy a car on credit

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Buying a new car from an authorized dealer should be like an easy walk: the client just comes to the salon and buys the right car. The dealership manager is a representative of the brand, who must work with the client with the highest quality to fully satisfy all his needs. In the process of buying a car, the manager is obliged to fully control all stages so that the client does not have any problems with the purchase of a new car. But does everything always happen in such an optimistic scenario?

The rule of trade says that the client is always right. In fact, it works depending on the situation. Sometimes a client who arrives at an official dealer dealership for a new car may encounter a fair amount of misunderstanding on the part of the managerial staff and a huge number of pitfalls that can greatly darken or even spoil the process of buying a long-awaited car. Today we will conduct a tour backstage of a car dealership, which is an official dealer of a certain brand. We will talk about how the car dealership works, and what is sometimes caused by inadequate or strange behavior of dealership employees.

After I worked as a car sales manager for two different car dealerships for four years, I have something to tell. At first it was a small dealership, then I got a job in one of the largest centers in Moscow. The work of a car dealership manager is a difficult craft, especially if the manager plans to be successful. Success can be different, but it is worth confessing that the realities of our lives are such that success at work is calculated, first of all, by the amount of wages. We go to work to earn money, and the salary in sales is very much connected with the indicators of these same sales.
Hot customer

The auto business in our country works on the principle of "here and now." I mean, it is profitable for any car dealership to sell cars from their warehouse at the first arrival of the client - this is the priority task of the car dealership manager. To order a car for delivery for managers is the number two task, and only on condition that the first option with the client did not work. Ordering a car for the manager is always a risk, because during the time of delivery of the car - on average from two to six months - the client can change his mind. The reasons for the refusal can be completely different:

- the client chose another car,
- the client found a better offer,
- the client decided to build a summer house,
- the client drank the entire amount, etc.

That is why a more profitable and quiet option for a manager is to sell a car from a warehouse: firstly, the car is available, and secondly, the client is now "hot", you can "work" with him. The manager receives a salary for the issued cars, but not for those ordered.

In practice, this is as follows. The client contacts the dealership, sets out his requirements for the car. Suppose he wants an abstract car of the brand ХХХ, red, in a sedan, with a 1.6-liter engine, a manual transmission, in the middle configuration, but there isn’t such a car in the warehouse of a car dealership. A competent manager will never say that he is not there, he will offer alternative options from the warehouse of the dealership. The manager (M) will work with the client (K), trying to bring his needs to the available cars. For example, a client wants a red car, and there is only white in a car dealership.

K: I want a red car.
M: Sergey Petrovich, why do you want a red car?
K: This is my first car. I want a bright car, because I think it's safer. A bright car is noticed faster in the stream. So I want a red color.
M: Sergey Petrovich, I understand your concern about your safety, and I want to assure you that white is the brightest of all colors. White color reflects a maximum of light. Therefore, it is the most noticeable. And if you buy a white car, you will be calm for your safety, since a white car is visible from afar. Do you agree with me?
K: Yes, let's consider the option of white.

This works in 90% of cases, the remaining 10% of customers will order their initial version of the car or continue to search for the right car in other dealerships. The manager worked with the client, the manager sold the car, the manager received a salary, the sequence of earnings is very simple. This is the work of the manager, and he must do it, proceeding, first of all, from his interests.
Illiquid

Another point that makes up the structure of earnings: bonuses for the sale of stagnant cars. In car dealerships they are called illiquid assets, “mammoths” or “monuments”. It's no secret that in any car brand there are models or modifications that are very poorly sold. In dealerships such cars are sometimes found, and in order to increase the desire of managers to sell such cars, management sets up additional bonuses for their sale. The bonus amount is usually three to four times higher than the usual rate for a road car. Therefore, do not be surprised if you ask the manager for a popular crossover, and you are offered an orange convertible of the previous year at a very attractive price. A stagnant car will be presented to the customer as the most profitable purchase in the world. Other managers and their supervisor are often involved in this process of selling an illiquid car. The manager does his job, he sells a car unnecessary to a car dealership, he’s done well.

My advice to you is to avoid buying stagnant cars, but if you still really want to buy such a car, I recommend that you insist on replacing the engine oil or even conducting the first MOT at the dealer’s expense. Also, before buying, be sure to check the battery charge, it may need recharging or replacement (the car could stand for a long time in the showroom, and it was constantly discharged and charged, the battery suffered greatly from this).
Naked car

Selling a naked car is a very disadvantageous event for a car dealership. Earnings from this are small. It is profitable for a car dealership to sell a car in a comprehensive manner: with a good list of additional equipment, it is obligatory insured (comprehensive insurance + compulsory motor third-party liability insurance), sometimes on credit, and even better if a client submits his previous car to a car dealership using the trade-in system. In the event of such a sale, the earnings of a car dealership are greatly increased. Managers get their salary not only for the sale of cars, they accrue interest for the implementation of all of the above positions.

Sales plan

Of course, managers have sales plans: the number of cars per month, the number of transactions in the trade-in system, the number of sold Casco and CTP policies, the amount of additional equipment, sometimes there are plans for the number of credit transactions in a particular bank. Making plans for the management of dealerships is a fantasy.

I will tell you about my experience. The dealership management sets me a plan to sell 12 cars a month, with a total profit from all these cars of 360,000 rubles (or 30,000 rubles from each car). Casco plan - eight policies. Trade-In Plan - Three Contracts. The plan for the sale of additional equipment is 420,000 rubles (which is equivalent to 35,000 rubles per vehicle). Under the terms of my employment agreement, I will be paid wages if I sell more than half the plan for cars, that is, more than six cars. This means that I try to sell every car with the profitability I need, with the amount of additional equipment I need, with a comprehensive insurance policy and a trade-in, and in order to get paid, I need to make at least six such transactions. For simplicity's sake, let us exclude hull and trade-in, leaving only additional equipment and profitability from each car. We also agree that the situation is completely fictitious.

So, a client comes to me, wants to buy a new car. I work with him, identify his needs, guide him through all stages of the sale and select the right car for him. A new car costs 850,000 rubles. The market is designed so that customers ask the most logical question about a possible discount. The margin on this car is six percent, which is 51,000 rubles. I can manage this amount as I like, that is, I can give the client a discount on this amount, but I understand that then I will not earn anything from this car. It is important for me that the yield on a car is 30,000 rubles (850,000 - 51,000 + 30,000 = 829,000 rubles). Thus, an amount of 829,000 rubles looms in my head. It would seem that here it is - the amount by which I will sell the car. But I still need to sell additional equipment for 35,000 rubles. For myself, I have already mentally calculated how I will sell this car, how to present it to the client. Bargaining begins. I ask the client what price suits him, what gifts he would like to receive. I drive the client to the car in the showroom and show different options for additional equipment, and then I seem to go to the head to agree on the best discount for the client. Returning back, I tell the client that now there are no official discounts. But I understand the client’s desire to buy a car as profitable as possible and offer two options for the transaction:

1. The price of the car is 851,000 rubles, plus the buyer receives gifts worth 10,000 rubles (let the client want an alarm as a gift). The benefit for the client is 10,000 rubles.

2. The price of the car is 864,000 plus the buyer receives gifts worth 35,000 rubles (the client wants an alarm as a gift). But he also understands that he needs winter tires, tinting and engine protection. The client pays a little (13,000 rubles), while the benefit for him is already 21,000 rubles, and at the same time he gets everything he needs.

In this situation, the client will ask for a discount in money, as he understands that additional equipment outside the car dealership can be bought cheaper. I say that we cannot give discounts in cash (there are no official discounts right now), we have the conditions for the sale of each car checked by the brand, and in case of an unreasonable discrepancy between the sale price and the price list, the car dealership will face a fine of two car costs. Customer agrees to offer number two. It really works somewhere in 50% of cases.

Situations when customers refused to buy a car did not disappoint me much, as I understood that when selling a “bare” car my salary would suffer more than if I did not sell it at all. As a manager, I always tried to impose terms of purchase that were beneficial to me.

But it happens in another way: the manager may be inexperienced (or weak) and does not know how to calculate in advance the conditions of a profitable sale for himself. Such a manager can sell a “naked” car to a client at the highest possible discount. When visiting a car dealership, a client needs to guess which manager is greedy and successful, and which one can be bent to his conditions and buy a car as profitable as possible. As a rule, managers who easily follow the client’s request are trainee managers. These guys still do not understand how the “auto business” is organized, they need to have “sales for the sake of sales”, as a result of which the trainees are ready to “merge” the cars with the client on terms favorable to the latter. The other side of this coin is that the trainee can “mess up” much in the process of buying a car because of his inexperience and ignorance, and there can be a lot of options for such “jambs”. For example, the trainee may forget to buy the TCP in time or prepare the car for issuance, the trainee can set the day of issue on his day off and forget about it, the trainee can confuse the client with his other client and the car will have the wrong additional equipment and so on.

Estimated payroll manager car dealership

If you sell six cars a month with the highest possible discounts and without any additional services, I will only earn a salary of 6,000 rubles. If I earn “obligatory” 30,000 rubles on each car, then my salary will increase, but not by much, to an amount of 13,200 rubles. If I start selling additional equipment at 35,000 rubles per car, then my salary will more than double and will be equal to the amount of 28,950 rubles. But if I start selling 12 cars a month with a good margin and with a good amount of additional equipment, then my salary will reach an adequate level for Moscow and will be 66,300 rubles. Having added such positions as Casco, CTP and trade-in, I will put a few thousand rubles in the family piggy bank (total amount of 74,400 rubles). And if I want to earn more, I will have to sell cars without discounts (in the last line, the salary is calculated based on the earnings from each car in the amount of 50,000 rubles). Only then will a very worthy amount of 93,600 rubles be obtained. The calculations, of course, are all approximate, I did not take into account bonus positions, but the general meaning of the manager’s salary formation can be understood.

In cases where the market is ready to absorb cars en masse, the management of dealerships may well be a little "insolent" and come up with their own conditions for selling cars. I remember the situation when the price of Japanese crossover just debuted on the Russian market was overstated by 80,000 rubles (for cars available). If a client wanted to buy a car according to the price list, he was asked to order a car and wait about six months. The competitors of our dealership for the sale of this crossover had similar offers. But even at inflated prices, these cars sold very well, customers were willing to overpay. Such situations are common enough, especially with new products or bestsellers of sales. The management of dealerships can trite increase the price, can oblige the client to buy additional equipment for a large amount, can “incentivize” expensive insurance. It is useless to complain to the representative of a car brand on such occasions. The dealer will always figure out how to justify himself.
Title - how much in this sound ...

Having had four years of working with official dealers, I would divide them into two categories: large - they all know them, they sell a lot of brands, and small ones - a small car dealership, usually a “monomarka”. Large dealers have large amounts of money in their turnover, they almost always have a TCP (vehicle passport) for all warehouse vehicles. But if the dealer is small, then he does not have much money, and the TCP will most likely not be available. The client will have to make an advance payment and wait for some time (usually this is one or two business days).

In this case, such a nuisance may lie in wait for you: the client wants to buy a car, the necessary car is in the warehouse of the dealership, but there is no TCP. The manager explains that if you pay in full for the car, the TCP will be bought tomorrow and by the evening it will be possible to drive a new car. Customer pays the full amount. The manager explains the situation in accounting, and the accountant promises to buy TCP for this car the next day. But the next day, this money accounts department closes, for example, other debts of the car dealership, accumulated earlier. The “extreme” in the eyes of the client will be the manager. But the client has no other choice, and he will most likely wait. Dates may vary. In my memory, the longest wait time was about ten days.

There are pleasant exceptions - and a small dealer may have TCP available. What does this mean? Either an innocent situation when the TCP was purchased from the representative office by mistake, or the TCP was prepared for sale to a client who at the last moment refused the car.

Be attentive to "failed" cars

Why does failure occur? As a rule, for a negative reason: the extradition car turned out to be with significant defects (scratches, dents, and so on). If a small dealer offers you a vehicle with PTS in stock, carefully inspect it before buying.
Dealer plan before dealerships and potential customer benefits

That is why you should never buy a new car with a car loan.

Probably there are no drivers who do not dream of a new car. Having a new car is a special ritual for many. Almost every adult hopes to experience at least once in a lifetime the feelings that arise when buying and owning a new vehicle. Buying a new car, you get incredible emotions that are associated with satisfaction and increase your status in the eyes of others. This is what leads most people to decide to buy a new car.

К сожалению, чаще всего подавляющему большинству водителей не хватает денег на покупку новой машины. В итоге многие люди вынуждены оформлять автокредит или лизинг. Они по сути совершают заведомо невыгодную для себя сделку, которая приводит к огромным потерям денежных средств в будущем. Так почему же нельзя покупать автомобиль в кредит?

1) Ужасные потери денежных средств

Buying a new car as a whole is a bad investment. As well as most bad investments on the stock exchange, which lead to losses due to a rash purchase of shares or bonds. As a rule, bad investments are connected with our emotions and, in fact, they turn off logic, cold calculation and naturally our mind.

Did you pay attention to the advertising of new cars on TV, on the Internet, on the radio or on direct advertising in car dealerships? As a rule, most car advertising is aimed at our emotions. For example, often car companies advertise us a new model, hinting that when you buy a car you will get a lot of new sensations and an amazing driving experience.

We are also lured by focusing on some new functions and options. In principle, the task of any auto-advertising is simple - to circumvent our logic and mind, cause emotions. In car dealerships, hidden methods of sales promotion with pseudo-discounts are also used, when a certain amount is intentionally added to the recommended factory price, which subsequently becomes a discount. Often car dealers impose cars with additional options that cost significantly more than conventional trim levels.

By the way, few people know that, as a rule, car manufacturers are outside the retail business of new vehicles and therefore do not provide factory discounts for retail consumers. Therefore, all the discounts that you are offered at the salon are the marketing of the car dealership.

So, before you believe in the best offer imposed on you by the car dealership manager, think about whether it is possible to conduct a profitable business constantly providing significant discounts to customers. Remember that in most cases, discounts at the car dealership are imaginary.

So any car business is based primarily on the emotions of the client, who, thanks to the car manufacturer and car dealership, as a rule, disconnects his mind for a while, which leads him to a rash purchase. After all, cars are not products that we buy every day. Therefore, the task of any car dealership is to earn as much as possible on each client.

Unfortunately, all the benefits that are usually promised to us in the cabin and numerous extra options imposed on buyers of new cars, ultimately lead to an even greater loss of money in the long run. Especially when it comes to buying a car on credit.

Let's analyze how bad it is to buy a new car using car loans, on our example of calculations:

Suppose you want to buy a car worth 1,000,000 rubles. We specifically take a round number so that all the calculations in our example are easy to perceive.

And so, you do not have enough personal funds to buy a new car for cash and you decide to take a loan. Let's say you only have 20 per cent your personal savings to buy a new car. In this case, you get a loan in the amount of 800,000 rubles, paying at the cash desk 200,000 rubles as a down payment.

Let's imagine that you are lucky and you have found a great offer in the market by issuing a loan at a rate of 14 percent per annum. Although it is worth recognizing that it is very difficult to find such credit rates when buying a car at the moment.

Next, imagine that you have issued a loan for a period of 5 years. By the way, before the crisis, it was this term of car loans that was the most common in the Russian car market.

Now let's calculate how much you will pay per month for a loan after buying a new car with a car loan. So according to the calculations A monthly car loan payment will be 18.615 rubles.

As a result, for annuity payments (the same monthly payment for the entire loan term) for 60 months you will overpay on a car loan 316,876 rubles .

Given the average salary in our country, this payment is quite normal for many families. Especially for families living in large cities of Russia and, in the event that several people work in the family. That is why many people registering a car loan, as a result, become hostages of banking institutions, paying predatory interest for the use of other people's money under a loan agreement.

Look again at the overpayment figure:

316,876 rubles

Please note that this overpayment does not include the costs of the Casco policy, which you are forced to purchase for the entire period of the loan agreement. Also, our calculations do not take into account various bank commissions when applying for a loan, with early repayment, with an increased monthly payment amount, etc.

Given the cost of a car of 1 million rubles, even a quite acceptable loan rate of 14 percent after the expiration of a five-year term of car loans becomes predatory.

Indeed, in fact, you buy a car for 1,316,876 rubles .

Now let's add to our calculation the most important dirty business, which all car dealers prefer to keep silent when working with buyers of new cars. It is about the depreciation of the car over time. The fact is that any new car after it first left the car dealership begins to get cheaper every day.

As a result, according to statistics, on average, in the first year of operation, a new car becomes 22 percent cheaper. And how much do you think the car will become cheaper after 5 years and after, for example, the debt on a car loan is fully paid?

On average, the cost of the car is likely to fall on 55 percent. This means that a car that cost you more than 1,000,000 rubles for which you paid 1,316,876 rubles (plus Casco, taxes, Osago, etc.), after repayment of the loan will cost approximately 550,000 rubles. And do not forget, it will cost a car if it is in perfect condition, without any technical problems and external damage.

This means that in addition to the fact that you essentially throw 18.615 rubles each month into the garbage chute, you also significantly, every month, lose money to reduce the market value of your car.

Yes, of course, you will lose only when you sell the car, but think about it, because sooner or later it will have to be done. And if, for example, this is done after five years of owning a car, then, as we have said, in addition to overpaying for a loan, you will receive, after the sale, at best only half of the cost of the car.

I understand that some may object by saying: "Hey! I don’t care that the cost of my car is reduced, I will never sell it".

I have nothing against any opinion. If this makes people feel better, overpaying for a car on a loan and losing at its market price, then it will probably be better. But remember that all the same, by nature, buying a car on credit is a knowingly loss-making investment.

Here is a good example. Let's say you want to buy a Bik Mac at McDonald's. You have two purchase options: pay in cash or receive an order on credit, paying a penny every month for Bik Mac for 2 years. As a result, in essence, you will pay twice as much for Bik Mac. As you can see, a cash purchase for your own funds is much more profitable.

In both cases, buying a product at McDonald's you do not have the opportunity to resell it. Which option to buy Bik Mac is more reasonable and profitable? Naturally purchasing a product for cash. Indeed, in this case, you do not bind yourself with debt for a long period of time and do not overpay for goods that have long exhausted their financial value.

So it is with cars. Even if you are never going to sell your car bought on credit, buying with your own cash will be preferable.

If you, like most drivers want to sell a used car, then as we said, get ready to lose a lot of money. And this is not all the losses that await you ahead. After all, after selling your car, you also have to buy something in return. And most likely you will want to buy a new car again.

But since after selling a used car you will gain some money, you will not have enough money to purchase a new car. Thus, you have to add a considerable amount to the proceeds in order to buy a new car again. And, as always, the law of meanness will act and execute. You probably will not have enough money for a new car again, and you will be forced to apply for a car loan as before, tying yourself with another bondage.

2) You are not really the full owner of the car

Let's imagine that you bought a car on credit. Your full name shows off in the TCP for the car, and you are so happy, after registering the car with the traffic police, take the vehicle passport to the bank as a security for the loan. You naturally consider yourself a full-fledged car owner. After all, it is framed in your name. But your rights as an owner are limited. After all, in fact, without the permission of the bank, you cannot sell a car and perform any actions with them that full-fledged vehicle owners who bought a car for their own funds can perform.

The problem lies in the following, that having issued a car loan at the bank, you essentially concluded a vehicle pledge agreement for the entire loan term. As a result, you will become a full-fledged car owner only when you fully settle with a financial institution.

Thus, for the entire duration of the loan agreement, your rights to the car will be seriously limited.

Unfortunately, when applying for a loan, people, as a rule, are optimistic about the future. Although you need to remember that when making out a loan and making a forecast for the future, you should always look at this future pessimistically. After all, perhaps in the future you will lose your job or your business will go bankrupt. What then? Can you continue to repay the loan?

Or, if you lose your job, you expect to quickly find another. Are you sure that in the difficult economic conditions in the country you will quickly find a job where earnings will be no lower than the previous one? I would not recommend counting on it. Always count on the worst. So you can reduce your risk of defaults on loans or even refuse to buy a car on credit in advance.

You understand that in the event that you stop paying on a loan, the bank has the right to take away the collateral from you as repayment of the debt. Do you know what is the worst? If you have a car taken away from you, then you are likely to lose all the money that was paid on a monthly loan to the bank.

So, as you can see, buying a car on credit is associated with certain risks. Don't you think that buying a car on credit is a very bad deal in many ways?

Yes, of course, when people buy something on credit, they can afford to buy something today. Also, monthly loan payments teach us financial responsibility and savings. The loan is especially interesting for people who do not know how to save money, squandering their income on various unnecessary goods. But this does not mean that such people need to buy a car on credit. After all, as we have already said, the purchase of a car by installments is a very bad deal.

3) The car warranty is likely to end earlier than you pay a car loan

Most people buy new cars due to the fact that they do not want a headache and uncertainty when owning a used car. After all, having bought a new car, many of us believe that they do not have to worry about its technical condition and not worry about how the previous owner related to the car.

Also, many people are afraid to buy used cars due to the large number of sellers of deceivers. Ultimately, people want peace of mind when owning a car, buying for themselves a new car with a unique smell in a car dealership, and even with a factory warranty.

But at the time of buying a new car, few of us think that the guarantee for a car will not last forever. Time flies very quickly and you do not have time to look around how the factory warranty for the car ends. Also, after buying a new car, you will very quickly realize that the smell of novelty gradually disappeared somewhere from the inside of your car.

Currently, the average duration of a factory warranty for cars sold in Russia is 3 years. Accordingly, having issued a car loan, for example, for 5 years, you will continue to pay the loan for another 2 years after the warranty for your car expires. As a result, you will find yourself in exactly the same situation as if you had bought a used car.

And most likely, after the warranty expires, the car will surely present you with a surprise that will be associated either with the planned replacement of an expensive spare part, or with some kind of expensive repair. So, in addition to the monthly payments on the loan after the expiration of the guarantee for the car, get ready for significant additional costs.

Also, do not forget that during the warranty period you will also give a lot of money for the scheduled maintenance of the machine in the dealership technical center.

4) Buying a used car is much better

I acknowledge and agree that my view may be very biased. Nevertheless, my logic in the current economic conditions in our country is very justified. The thing is as follows, even if your financial condition allows you to purchase a new car on credit, it will be more profitable to buy a used car. For example, 2 years old.

Firstly, buying a two-year car you will avoid a significant reduction in the price of a new car in the first years of ownership.

Secondly, you are likely to buy a car in which all factory defects or some kind of marriage have already been identified. And besides, in principle, you buy a new car with low mileage. In addition, within a few years of owning a used machine, it will not lose very much in its market price.

Including, considering used cars in comparison with new ones, you will have a huge selection of vehicles with their complete set. And most likely with sets of winter and summer tires.

Also, you can change used cars every few years by buying different brands and models without losing significant amounts on sale. As a result, you get the experience of owning different cars. Agree that this is better than buying a new car and losing half its value in a few years, and in addition, in the case of a car loan that you will pay for 5 years, overpay a huge amount to the bank.

Yes, of course, buying any used car is associated with the risk of buying a broken or problem car. But each buyer can reduce these risks to virtually zero by properly building the process of searching and purchasing a used car.

Firstly, for a start, consider all the offers of car dealers for the sale of used cars. Yes, you have to overpay for dealerships, but in most cases it’s worth it. Although there are cases when dealers sell bad cars. But this is more likely an exception.

You can read more about how to buy a used car in our materials:

And yet, for such a case, you can hire specialists who will help you find a good used car for you. But remember that it is advisable to contact such people on the recommendations of your friends who have already applied for such services. Otherwise, you risk not only paying in vain for the selection services, but it is also possible to purchase a problem car.

So what to do if you want to buy a car, but there is no money even for a good used one?

Yes, you say, in theory everything is logical and correct. And in life, most often everything is much more complicated. I do not argue that in fact, for most Russians, buying a car at their own expense seems like a pipe dream. But the main reason for this, of course, lies in the financial incomes of the population, which in our country leave much to be desired, and moreover, when everything around is only becoming more expensive. How then to realize your dream and buy a car? After all, in this case, a car loan becomes almost the only straw?

To begin with, everyone should be financially literate and understand that buying any product on credit always leads to throwing out money. After all, there are no free loans and installments. For the use of other people's money you always need to pay, and a lot.

You should also understand that buying a new car (especially when you don’t have enough money to buy it) on credit is impractical and illogical.

In this case, it is better to stop on the purchase of a used car. Especially in our difficult economic conditions for the country.

In addition, if you also do not have enough money to buy a fresh used car, can it be better to postpone this purchase for the future, or just buy an old cheap car, or maybe even refuse personal transport for a while?

After all, why pay the bank for a car loan, if you can, in principle, independently save up for an excellent used car making your money work in this way. Согласитесь, это намного разумней. Вы считаете, что не умеете копить? Но это не причина, чтобы вешать на себя кабалу 5-летнего кредита.

На самом деле каждый может накопить на автомобиль, откладывая ежемесячно в принципе те же платежи, которые вы готовы оплачивать за кредит. Лучше всего, если вы будете откладывать на банковский вклад, который открыт по фиксированным процентам с капитализацией.

Let's calculate together how much money you can save if you open a bank deposit for 5 years at 6 percent of ready-made with capitalization percent with the possibility of monthly replenishment.

And so imagine that you have opened a contribution by 18,000 rubles as a down payment. Let's say the deposit rate for the entire deposit term will be 6 percent of the finished. The monthly deposit income is added to the main deposit amount.

Suppose we will monthly deposit of 18,000 rubles. As a result, over 5 years of the contribution we will save 1,261,915 rubles . Of these, our money will be 1,062,000 rubles and 181,915 rubles interest on the deposit.

Agree that this is much better than obtaining a loan and overpaying more than 300,000 rubles, while losing the cost of a new car after 5 years of ownership.

The main thing is to understand that when you issue a loan you are selling your future. That is, you begin to live on credit. Believe us, it is addictive and almost always obscures your mind.

We hope that our calculations will help someone make the right decision.

The essence of the resale business

The meaning of the work of any businessman in making a profit. It is desirable that it be as large as possible and be achieved as quickly as possible. This is how you can make money on reselling cars: bought, sold, bought again and sold again.

The essence of the business is the maximum reduction in prices when buying and overpricing when selling. Of course, this is ideal. In order for the machines to “not freeze” and the circulation of funds not to be interrupted, much needs to be learned.

What you need for business

Organization of the work of car dealers and other professionals (legal entities) requires a thorough approach. Need registration, license, trading platform, trained sales and maintenance personnel. For ordinary citizens, desire alone is not enough. Certain knowledge, skills and, of course, luck will be required. We have to learn to accurately determine:

First of all, you need to be able to assess the real value of any car.

Before you purchase something for further implementation, you should familiarize yourself with the preferences of local buyers and understand the features of the market.

We have to act as both a buyer and a seller, so it is important to study the psychology of both. A reseller needs to be learned at a glance.

You will not have staff. Maintain and pre-sales will have to do it yourself. You need to understand technical issues, and it will take a maximum of time if you are a beginner. It is difficult to prepare a battered car for sale, but without serious knowledge and skills it is unrealistic.

Will have to independently perform the work of the sales department, which also will not. You need to learn how to write ads correctly, accurately determine the price for which you can buy and sell a car. Seasonal demand affects pricing and should also be explored. It is important to understand the extent to which you can bargain.

You will also have to understand the nuances of registration and security transactions. Before you start your own business, you need to find out if you can do this work. Start with an inexpensive car segment and do not take loans at the start - so there is less risk of losing everything. Consult experienced resellers. Get and learn how to use a thickness gauge.

You will have to learn a lot. It is important to respond quickly to good offers, but the main thing is not to rush, meticulously choosing both the car and the client.

Where and how to purchase resale machines

Having figured out which cars are better to buy for resale, you can get down to business. But first you need to decide on the “workplace”. Used cars are now being traded, as they say, on every corner. You can buy a vehicle:

  • with hands on the car market or via the Internet,
  • in another region where prices are lower
  • Abroad,
  • at an auction, including foreign,
  • on autodismantling and so on.

In general, any well-established site is suitable. This is where there are many sellers and buyers, the choice of offers is large, and the security of transactions is guaranteed.

In the car market, physical or virtual, you can meet the townsfolk who want to buy or sell cars, dealers and scammers. Your task is not to let yourself be deceived. Here the choice is maximum, but the risk of buying auto trash is the biggest. To prevent this from happening, you need to check:

Test drive is required. In the course you need to make sure that the car starts up easily, does not stall, the box switches smoothly, on bumps the car behaves smoothly, and the steering wheel does not lead anywhere. And bargain, because your profit depends on it. You can check the legal cleanliness of a car at a notary public, on the basis of the traffic police, on "Autocode" and so on.

In a region with lower prices

If somewhere the car is cheaper, it is worth using. A trip for a car in a neighboring region is a profitable business if transportation costs are justified. The process of selecting and processing a deal is no different. Only, for obvious reasons, it is not recommended to do this alone.

Abroad

Cars abroad are much cheaper than ours. Only need to consider the cost of transportation and customs clearance. European cars are famous for their quality and liquidity. They are usually in good condition, but have high mileage. A car with low mileage is significantly more expensive. Here you need to choose something in between.

It is advisable to find a private seller. This will not hide anything, and you can always bargain with it. A good option is the saloon of used cars. Here, the price may even be slightly lower, plus the car must have passed pre-sale training. You can take a battered one, but again, everything depends on transportation. It is also worth considering the GLONASS requirement.

In the US, cars are even cheaper. Local car enthusiasts are not as careful about their cars as Europeans, but a compromise between technical condition and cost can always be found. Usually, a new, but slightly damaged car, the Americans immediately put up for sale.

The complete set of these cars is maximum and adapted for the local consumer. The engines are mostly aspirated, and the boxes are classic machines. Walrus can be decent, even with overhead. You can do all the work yourself or with the help of intermediaries.

At foreign auctions

Another popular way of earning with us is the resale of cars from Japan. Here you can not do without an intermediary (this is the specificity of local auctions). The buyer’s task is to choose an offer at the auction and conclude an agreement with a company that will bid and deliver and clear the vehicle. The last question can be resolved independently by agreement.

Buying broken cars for restoration

This option is not suitable for starting a business. Firstly, additional capital is required, and secondly, knowledge, without which competently cope with the repair will not work. It is very important here that the cost of the machine after restoration does not exceed the average on the market. To do this, you need to be well-versed in the prices for car services and spare parts.

There is a danger of buying illiquid, intended only for disposal. But here options are possible, because the car can be sold in parts. There are many risks, but with a competent approach to evaluating the enterprise, the profit will exceed expectations.

Machine resale schemes

Having bought a suitable product, you need to think about how to sell it. You can sell in the market, in a car dealership (we are not talking about an urgent buyback), according to an announcement on the Internet or to acquaintances and friends. There are several options for processing a transaction:

  • The contract of sale (DKP).
  • Power of attorney.
  • Contract agreement.

Under the contract of sale

If the car is sold to a private person, the most reliable option for processing a transaction is through DCT.

The contract is drawn up in simple writing and does not require notarization.

The agreement should include the following information:

  • passport data of the seller and buyer,
  • detailed description of the machine,
  • seller’s obligations
  • date of transfer of the car and registration of ownership,
  • duties of the parties,
  • car cost
  • terms and methods of calculation.

In addition, an act of transfer of the vehicle is sometimes drawn up.

By general power of attorney

Under this scheme, the seller draws up a general power of attorney for the buyer, receives money in exchange for keys and documents. This is a quick way to sell a car, but there are some nuances to consider. Legally, the vehicle does not change the owner, which means fines from video cameras, if any, and the seller will have to pay taxes. This option is suitable for urgent sale or to friends, relatives - those who have confidence.

According to the commission agreement

When the car is put up for sale in the cabin, a commission agreement is drawn up. That is, an intermediary company sells a car for a certain percentage of the cost or charges a fee for storing and offering goods to the market, and this fact is reflected in the agreement.

DKP with the buyer is concluded by the owner of the vehicle or salon by prior arrangement. Settlement between the salon and the seller can be carried out immediately or after a direct sale. There are risks here, so the site for the sale of a car should be carefully selected. Profit will be less, and this option is suitable for those who have a large turnover.

Conclusion

In conclusion, we note the advantages of the auto resale business:

  • High profitability.
  • The rate of profit.
  • Ability to combine with the main work.
  • A large number of sites and online platforms for buying and selling.
  • A wide selection of offers in different price segments.

Cons too:

  • risk for large investments,
  • the need for certain knowledge and skills,
  • high competition
  • seasonality of sales.

In the end, it is worth saying that any business is risky. If you are afraid, it’s not worth taking. And you can learn everything if you wish.

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