http://www.motor-trade-insider.com/index.php/2008/06/how-does-a-modern-day-car-dealer-really-make-money/ Car Buying Guide Wed, 08 Feb 2012 14:09:15 +0000 hourly 1 http://www.motor-trade-insider.com/index.php/2008/06/how-does-a-modern-day-car-dealer-really-make-money/comment-page-1/#comment-50 Dave Cooper Fri, 08 Aug 2008 12:07:12 +0000 http://www.motor-trade-insider.com/?p=93#comment-50 Absolutely, the "add-ons" and meeting other sales targets are where the money is made. The car by car margin is pretty slim. Until recently, in a mortgage market where interest rates are low and margins for selling those mortgages are low, mortgage brokers and financial advisors made most of their money selling insurances like home insurance, life insurance but most of all payment protection insurance to people. The only people who have to buy the payment protection insurance to get a loan at all are those who are bad credit risks. No surprise that these guys went out to sell the biggest mortgage possible to people in this position. All different now though... Absolutely, the “add-ons” and meeting other sales targets are where the money is made. The car by car margin is pretty slim.
Until recently, in a mortgage market where interest rates are low and margins for selling those mortgages are low, mortgage brokers and financial advisors made most of their money selling insurances like home insurance, life insurance but most of all payment protection insurance to people. The only people who have to buy the payment protection insurance to get a loan at all are those who are bad credit risks. No surprise that these guys went out to sell the biggest mortgage possible to people in this position. All different now though…

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