As I have been shopping for cheap cars, I have noticed that the larger the car dealer, the more expensive the used cars. That doesn't make sense to me. You would think that if you had a big dealership that sells new cars, takes in a bunch of trade-ins and has a huge lot of used cars, you would be able to have volume on your side. But that doesn't seem to be the case. If you want a cheap car, you need to visit the small used car lots, not big lots.
I have also been to a few dealers that advertise a cheap car, then when I went to see the car, I was told "we can't sell that car, it is going to the wholesaler". The salesman never says why - they just say "the shop found something so it's being sent to the wholesaler."
If a car goes to the wholesaler, I assume it shows back up at one of the smaller car dealers somewhere in the country. So, the big dealer would rather dump a car off than sell it to me? Then the car goes through a wholesaler, which adds cost, then to a small dealer, which adds cost, then it gets sold to a customer like me? The economics of this business model baffles me...
Someday I suspect car dealers will go the way of brick & mortar bookstores, music stores and electronics stores. The car manufacturers will eliminate the dealerships and either build a true internet-direct model, or the dealers will be replaced with an Amazon type of model. The auto industry just seems ripe for an elimination of all the markups in the supply chain. I know there are buying services that are pretty close to this - but a true internet-direct model has yet to be tried - and I think it is time. I'm tired of paying for the car lot and the sleazy salesmen.