Why Are 4S Stores Afraid of Full Payment for Bare Cars?

1 Answers
ODominic
07/29/25 7:38pm
The following are the reasons why 4S stores are afraid of full payment for bare cars: 1. Profit reasons: Full payment for a car is a selling method favored by car manufacturers, but 4S stores cannot make a profit from it. They not only earn nothing but also lose money on capital, transportation, and sales costs, whereas 4S stores prefer car loans. 2. Interest reasons: Many banks now cooperate with 4S stores for installment car purchases, offering very low interest rates. 3. Service charges: The profit does not come from interest but from service charges. Loan car purchases require full insurance, and 4S stores can also earn a portion of the profit from insurance companies. The main profits for 4S stores come from loan service charges, financial service fees, and car maintenance fees.
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