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Posted: 10/28/2013 9:58:45 PM EST
[Last Edit: 10/28/2013 10:13:49 PM EST by dillweed]
Local dealership has a nice low mileage pickup truck (F150 crew cab lariat). It's been on the lot for almost 2 months. They're asking way to much for it (31k even). I've talked to them a few times and found out they're into it for 5k below asking price (26k even). KBB fair value retail is 2k below asking price (29k). Assuming they're telling me the truth (big assumption), what should I offer them at the end of the month? I'd just write them a check for all of it. $500 over their cost? $1000? I don't want to be a total dick, but I get the hunch they want it gone and I obviously don't want to pay more than I have to. If they accept the deal will be predicated on letting me take it for a few hours to a friend to check it out (foreman at a garage that services a fleet of 800-1000 vehicles).

Thanks much.

Edit for midnight grammar.
Link Posted: 10/28/2013 10:05:13 PM EST
They'll never sell a used car for $500 over cost. One of the employees will get it first. The floor plan should start charging them at the end of the month. It's 90 days, IIRC. If they're into it for $26,000, they'll sit on it for a while before they make a low profit deal like that. If I was in your position, I'd find something else. Maybe in a month they'll take $29,000 for it, but it sounds like the sales manager thinks he's got gem. When that happens, he won't let go of it until he has to.
Link Posted: 10/28/2013 10:09:33 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By sigp226:
They'll never sell a used car for $500 over cost. One of the employees will get it first. The floor plan should start charging them at the end of the month. It's 90 days, IIRC. If they're into it for $26,000, they'll sit on it for a while before they make a low profit deal like that. If I was in your position, I'd find something else. Maybe in a month they'll take $29,000 for it, but it sounds like the sales manager thinks he's got gem. When that happens, he won't let go of it until he has to.
View Quote

But a smart dealer rotates their floor plan.

You've got a fair shot at getting it for $1000 over cost.
Link Posted: 10/28/2013 10:11:38 PM EST
[Last Edit: 10/28/2013 10:14:45 PM EST by dillweed]
Thanks for the replies. Forgot to mention they've already texted me to say they'll take 28k, so I know I can do better than that.

Edit again (damn I'm tired)
Link Posted: 10/28/2013 10:17:59 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By sigp226:
They'll never sell a used car for $500 over cost. One of the employees will get it first. The floor plan should start charging them at the end of the month. It's 90 days, IIRC. If they're into it for $26,000, they'll sit on it for a while before they make a low profit deal like that. If I was in your position, I'd find something else. Maybe in a month they'll take $29,000 for it, but it sounds like the sales manager thinks he's got gem. When that happens, he won't let go of it until he has to.
View Quote


No, sometimes they even lose money selling used cars! If they had to step up in a trade to make another problem go away they may be high in it. The 26k may be before the reconditioning fees and packs. If you think they have 26k in it as it sits, offer $500 over and see what they say. They will give you a price, if you don't like it be prepared to walk. Don't offer anything until you get the truck checked out by your friend first. Most dealerships have no problem with you having your mechanic check out a vehicle.
Some dealerships do not floor plan used inventory, most do, many of the sales managers do not let this influence what type of deal they will make ( more should).
A easy low hassle deal with no trade and no worry about financing approval at the right time may be worth less profit to the manager.
Link Posted: 10/28/2013 10:22:19 PM EST
$87





















Over cost.





Link Posted: 10/28/2013 10:28:28 PM EST
If it's a USED vehicle they're usually a lot less into it than you think!

I've seen some used sales managers UA (under allow) a trade for as much as 10K...

Unclaimed rebates, promotions, etc etc

We'd could snag up a used car for $500 over what we had into it IF it sat for something like a week.

*Look at KBB WHOLESALE price, that's around what they may have into it. Prob a bit less. That's usually the STARTING point when negotiating a trade in.
Link Posted: 10/28/2013 10:34:06 PM EST
damn. I paid 32k otd for a new f150 4x4
Link Posted: 10/28/2013 10:44:24 PM EST
Not a used car sales guy. However, already bought some used cars. Only bought a new car once. New ones lose value fast so I now usually buy them around two years old.

The last time buying one (about three years ago) I first found what I really wanted (looks like you already did).

Then I did the homework to find the actual price for that car and dealer always pay less. (looks like you already did)

So, I walked into the dealership with my checkbook and opened it in front of the sales guy. Then told him, "I'm buying that car cash and will pay you $XYZ. Can I write the check?"

Sales guy does the usual theatrical "go talk to manager" thing, comes back. "OK. It's $XYZ + tax."

I reply, "No, it's $XYZ with tax included. Do the reverse math and find out all your fees, etc. and add them also. I'm my check is $XYZ."

Theatrical "go talk to manager" again. Says it's not possible, etc.

I close the checkbook and start moving towards door. He says "wait, OK".

So, I got the car.

One cue that showed me they were ready to sell is that the sales guy let slip during the conversation that the car was sitting there for a while and they were going to send it for a wholesale auction. Apparently this is not good for them.

Good luck!









Link Posted: 10/29/2013 6:59:52 AM EST
$27.5K and you should be burning gas.
Link Posted: 10/29/2013 7:02:38 AM EST
Your first mistake is your basing this off of KBB, NADA or anything that's publicly available. Chances are good they got it for a lot less then what the sites are telling you. Dealer's are businesses and they have to make a profit so they can eat too. If you are looking for a deal then perhaps you should look at a private sale instead.
Link Posted: 10/29/2013 7:06:21 AM EST
[Last Edit: 10/29/2013 7:07:59 AM EST by cyborg543]
buying new cars or used cars is like buying anything else

they'll take what the market will bear

if something is selling like hotcakes then they'll charge the full window sticker and add 'additional dealer profit"

if you want the lemon yellow AMC matador with radio and AC delete that's been sitting on the lot for 6 months, you can get it for less than the dealer paid

those guys make money by overturning their inventory and they don't have any emotional attachment to the cars


what you should do is see what the vehicle in question is selling for typically and then start there

the price the dealer paid is irrelevant

suppose they paid $10 or suppose it was 1,000,000

Link Posted: 10/29/2013 7:18:53 AM EST
[Last Edit: 10/29/2013 7:19:48 AM EST by charliepete67]
Look, the internet has made properly evaluating the value of a car much easier.

Go to the lot, find an acceptable vehicle and write down the VIN number. Look the vehicle over and get an idea how clean it real is.

Take the VIN number and go to http://www.NADA.com

Do a little light reading and follow the basic instructions, it is fairly intuitive.

Within 15 minutes you will have an accurate idea of the retail and trade in value of the vehicle in question, dependent on condition.

When you go to a bank for a loan, they are going to use the NADA value to determine how much they are willing to loan you for the vehicle.

Now some people, usually car salesmen, will try and tell you that Kelly Blue Book is the value and blah blah bah.

Bullshit. Kelly Blue Book claims theirs is a value listing for cars in exemplary condition or for rarer vehicles...don't buy it.

It is a tool that dealers like to use to jack the price up on a car they consider "special".

Bottom line is, get in an accident and your insurance company is going to use the NADA value to determine the value of your vehicle.

If the dealer won't sell the vehicle at top NADA price (or lower), keep looking. There are dealerships that will.
Link Posted: 10/29/2013 7:23:02 AM EST
I'd run away. 2 months on the lot.
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