Tips Sahabat

Rarely Exposed, This is the Secret of Used Car Dealers to Make Big Profits

12 April 2025
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The buying and selling of used cars appears to be a promising business. Even during the Covid-19 pandemic, interest in used cars saw a significant increase. 

It's no surprise that there are now many used car sellers both offline and online. The tight competition has led traders to employ a few tricks to sell more and maximize profits. Such practices are often referred to as the secrets of used car dealers.

It sounds reasonable, as they are traders after all. In basic economic principles, such tricks are considered normal, just like in the automotive market in the country. Therefore, friends need to know what secrets used car dealers employ so they don't feel disadvantaged. Here’s a detailed explanation: 

1. Depreciation Calculation  

Basically, there are two types of calculations in determining the price of a car, namely book value and floating value. What does that mean? 

Book value is the determination of the price of a used car by applying depreciation. So, every car that leaves the showroom sees its selling price drop by 10-15 percent. 

Then there is the floating value calculation. This refers to the seller's calculation in pricing a used car depending on the condition of the car. This calculation seems to label the skill and experience of the used car dealer. The better they are at their business, the higher the profits they can achieve. 

2. Used car stock comes from individuals 

Used car dealers looking for big profits may have employed this trick. The stock of used cars in the showroom comes from individuals and not from brokers or other showrooms. Because if it comes from brokers or showrooms, they will also take a profit. 

It's a different story if the used car is purchased from an individual; it will certainly be sold cheaper. Especially if the person selling the car needs quick cash. 

3. Understanding price trends 

As used car dealers, they are certainly well-versed in the price trends of cars in the market. Every used car dealer strives to set competitive prices. Because, the price set for the car also determines whether it sells quickly or not at all. 

4. Avoiding uncommon car colors 

Not only do they understand price trends, but used car dealers also know the preferences of used car buyers. They tend to avoid buying cars for stock in uncommon or non-favorite colors such as blue, dark brown, light brown, and green. 

Besides the high potential for depreciation on non-favorite colors, stocking used cars in basic colors is certainly more appealing to used car buyers and sells better. The basic colors referred to are black, white, red, silver, and dark gray. 

5. Regularly visiting workshops 

Used car dealers usually have regular workshops they go to. The goal is, of course, to reduce the repair costs of used cars so that when sold, their appearance and performance are restored to good condition. If the car looks good, then the selling price can be higher and more profitable. 

That’s why if you want to buy a used car, it’s best to be careful and extra thorough in checking its condition. Because it’s not uncommon to find used cars that have been repaired using substandard spare parts. 

6. "Playing" with the odometer

One of the main weapons often used in the used car business is the odometer. To attract buyers, "dishonest" traders usually manipulate the odometer reading. 

As we know, the odometer often determines the selling price of a used car. The smaller the number, the higher the price will be. This is because there is a perception that the smaller the number, the less the car has been used and is considered "new." This is where dishonest dealers make significant profits. 

In older cars, the odometer still uses analog. However, an odometer that has been tampered with can be detected using a magnifying glass. This can at least help you if you want to buy a used car. 

Can digital odometers also be "played" with? The answer is of course yes! But to uncover the fraud, specific software is needed. 

Another way is to check the condition of the seats that are sagging or the orange peel texture on the steering wheel. If the orange peel texture is missing and the seats are sagging, then the car can be confirmed to have traveled a long distance, or in the dealer's terms, a "tired car." 

Read also: How to Negotiate for a Used Car

Author: Dinno Baskoro

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