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Cash payments that exceed $10,000 (or multiple related transactions involving more than $10,000) for a car require that the dealership report the transaction to the U.S. Treasury's Financial ...
The dealership makes money from financing cars; the more cars it finances, the more it makes. Again, knowing the total price you want to pay for the car is key — including your down payment.
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In the used car market in the United States and Canada, buy here, pay here, often abbreviated as BHPH, refers to a method of running an automobile dealership in which dealers themselves extend credit to purchasers of automobiles. [1] Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates. [1]
Floor planning is commonly used in new and used car dealerships. [2] Contrary to common perceptions, most car dealers do not pay cash for the vehicles on their lot. [ 3 ] Even smaller dealerships can have an inventory of vehicles representing millions of dollars of capital investment .
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