Not 100% sure yet, but I want to say close to $40k. The car also has the "Jaguar Select Edition" 6 year/100k extended warranty on it too, FWIW. Warranty is good through November 27, 2012 or 100k miles.

 

How was the drive home in the Jag? I hope you took that instead of the Astro.






Terry

 

I did take home the Jag. I like it. I don't love it though. Too cushy for me. But it has a nice ride, decent power, not to mention gets plenty of looks...

 

Shoofin, do you get cars for people that's not in your local area? If so, how does it work?

 

Shoofin, How much does an 03-06 Lexus RX330 go for at the auctions you go to? Dad's looking into gettin one soon.

 

Shoofin,

What's going on at Auctions? I'm looking at post sales and the prices are insane! Is it the same in your area?

 

I've been so busy, haven't had the chance to go to the auctions lately. I have a guy there that does the buying and selling for me. I pretty much sold out all my inventory, all I have in stock is a 2007 Honda CRV LX that I bought someone out of their lease..

 

Hey - Sorry I didn't notice this...I can pick up cars out of the area, it all depends on where you're located. I can sell a car to anyone in the world, pretty much.

 

Depending on miles, condition and equipment, I want to say it could be anywhere in the low teens for an '03 to if not +/- $20k for an '06.

Don't forget, the '03 model is the 1st gen body style (RX300), the new(er) body style is the '04+.

 

A recent article on used car demand and higher prices:

For local used car dealers, the competition for late-model inventory is fierce. Pay a visit to a Birmingham car auction and the urgency in bids might lead you to think a piece of fine art or rare sports memorabilia was on the auction block instead of a late-model used vehicle with low mileage.
It’s a common problem that has plagued the local used car market as numbers for new car sales continue to struggle. With fewer new cars being sold within the past two years, it means fewer used models are now entering the market. Consequently, the dynamic has driven dealers to pay more and earn far less for their used cars.
“There’s just a shortage of inventory,” said Chris Donohoo, owner of Donohoo Automotive. “So you just gotta go into an auction and battle.”
According to Donohoo, the increase in sales for pre-owned vehicles has also caused demand to far exceed supply.
“Everyone in their heads is thinking that a used car is a better value right now,” Donohoo said.
For him, the key is to sell quickly.
“We make less money, but you have to do it,” Donohoo said. “Some profit is better than none ... obviously, we want more for the car, but it’s just too competitive right now.”
Donohoo and his staff have also combated the issue by selling the cars locally.
“What we are seeing is much different from dealers in other areas, so if you sell within the same market, you should be okay,” Donohoo said. “If you have to pay more, that means all dealers in the area have to pay more.”
They also focus on cars that require fewer repairs before being sold.
“We are not going to buy one that’s got to have a lot of reconditioning,” he said.
Anthony Underwood of Anthony Underwood Automotive in Bessemer echoed Donohoo’s concerns. According to Underwood, a dealer could expect to pay $500 to $1,000 more for a 2007 Ford Taurus than they did one year ago. This is a vast difference from normal market conditions, where such vehicles would be $500 to $1,000 cheaper as it matures, he said. He added that market conditions mixed with outdated pricing procedures have created a tough environment for local dealers.
“The value guides used to buy cars hasn’t kept up with the time,” said Underwood, who is also president of the National Independent Dealers Association. “These are also the same guides banks used to determine how much they will finance a car for, so that also creates problems.”
Some dealers are even trying to buy used vehicles directly from consumers, he said.
“Sales are up but the barrel is not as full as it was,” Underwood said. “What we have found is that dealers are paying almost a notch higher for cars than what they were paying last year.”
Bob Robicheaux, professor of marketing at the University of Alabama at Birmingham, said the situation is nothing new to the Birmingham market and is a direct result of the local economy.
“In other areas, where the unemployment rate is low and the economy is more stable, they don’t have these issues,” he said. “People are just not buying new cars and now rental car companies are holding on to their cars a little bit longer, although historically, they served as a strong source for used cars.”
And he said to add to the mix the changes in buying behavior of baby boomers.
“The 45-plus generation at one point was the largest sector of new car buyers, but they are now more sensitive to the economic challenges that lie ahead, so they are now taking more and more to buying used cars.”

 

^Copied and pasted or not, paragraphs are nice.

 

Per your request,

For local used car dealers, the competition for late-model inventory is fierce. Pay a visit to a Birmingham car auction and the urgency in bids might lead you to think a piece of fine art or rare sports memorabilia was on the auction block instead of a late-model used vehicle with low mileage.

<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>
It’s a common problem that has plagued the local used car market as numbers for new car sales continue to struggle. With fewer new cars being sold within the past two years, it means fewer used models are now entering the market. Consequently, the dynamic has driven dealers to pay more and earn far less for their used cars.

<o:p></o:p>
“There’s just a shortage of inventory,” said Chris Donohoo, owner of Donohoo Automotive. “So you just gotta go into an auction and battle.”

<o:p></o:p>
According to Donohoo, the increase in sales for pre-owned vehicles has also caused demand to far exceed supply.

<o:p></o:p>
“Everyone in their heads is thinking that a used car is a better value right now,” Donohoo said.
<o:p></o:p>
For him, the key is to sell quickly.

<o:p></o:p>
“We make less money, but you have to do it,” Donohoo said. “Some profit is better than none ... obviously, we want more for the car, but it’s just too competitive right now.”
<o:p></o:p>
Donohoo and his staff have also combated the issue by selling the cars locally.

<o:p></o:p>
“What we are seeing is much different from dealers in other areas, so if you sell within the same market, you should be okay,” Donohoo said. “If you have to pay more, that means all dealers in the area have to pay more.”

<o:p></o:p>
They also focus on cars that require fewer repairs before being sold.

<o:p></o:p>
“We are not going to buy one that’s got to have a lot of reconditioning,” he said.
<o:p></o:p>
Anthony Underwood of Anthony Underwood Automotive in Bessemer echoed Donohoo’s concerns.

According to Underwood, a dealer could expect to pay $500 to $1,000 more for a 2007 Ford Taurus than they did one year ago. This is a vast difference from normal market conditions, where such vehicles would be $500 to $1,000 cheaper as it matures, he said. He added that market conditions mixed with outdated pricing procedures have created a tough environment for local dealers.

<o:p></o:p>
“The value guides used to buy cars hasn’t kept up with the time,” said Underwood, who is also president of the National Independent Dealers Association. “These are also the same guides banks used to determine how much they will finance a car for, so that also creates problems.”

<o:p></o:p>
Some dealers are even trying to buy used vehicles directly from consumers, he said.

<o:p></o:p>
“Sales are up but the barrel is not as full as it was,” Underwood said. “What we have found is that dealers are paying almost a notch higher for cars than what they were paying last year.”
<o:p></o:p>
Bob Robicheaux, professor of marketing at the University of Alabama at Birmingham, said the situation is nothing new to the Birmingham market and is a direct result of the local economy.

<o:p></o:p>
“In other areas, where the unemployment rate is low and the economy is more stable, they don’t have these issues,” he said. “People are just not buying new cars and now rental car companies are holding on to their cars a little bit longer, although historically, they served as a strong source for used cars.”

<o:p></o:p>
And he said to add to the mix the changes in buying behavior of baby boomers.

<o:p></o:p>
“The 45-plus generation at one point was the largest sector of new car buyers, but they are now more sensitive to the economic challenges that lie ahead, so they are now taking more and more to buying used cars.”<o:p></o:p>
<!-- end storycontent -->

 

Manheim Releases Mid-Year Used Car Market Report
August 06, 2010

ATLANTA – In what remained a volatile marketplace in the first half of 2010, new and used vehicle retail sales volumes increased, wholesale used vehicle volumes declined, and wholesale vehicle values reached record highs, according to Manheim.


These and a host of other industry trends are analyzed in-depth in the Mid-Year edition of Manheim’s Used Car Market Report, available online at www.manheim.com/consulting.

“Everyone with a stake in the used vehicle market needs as much information as possible to make smarter decisions,” said Manheim president and CEO Dean Eisner. “Readers from all segments of the industry will find this report useful as they develop a deeper understanding of the state of the used vehicle business.”

Highlights of the report include:

SALES VOLUMES Total new vehicle sales in the first half of 2010 came in at a seasonally adjusted annual rate of 11.1 million; fleet sales were up 41 percent over last year, while retail sales were up 12 percent.
Total used vehicle retail sales increased by 3.6 percent in the first half of 2010; sales by dealers were up 4.4 percent and private-party transactions rose by 1.8 percent.

THE WHOLESALE MARKET
Auction volumes declined in the first half of the year, with units sold down 8.2 percent from last year, according to the National Auto Auction Association.
Wholesale prices, meanwhile, reached a record high in May’s Manheim Used Vehicle Value Index. On an annual average basis, wholesale used vehicle prices as of June were 5.3 percent above their year-ago level.

ONLINE ACTIVITY
Manheim.com is receiving a record 900,000 visits per week, and more than 21 percent of all Manheim transactions took place online via Manheim Simulcast or OVE.com.

RENTAL MARKET
In 2010, the rental industry is expected to purchase between 1.5 million and 1.6 million vehicles, up from 1.1 million units in 2009. In the first half of 2010, Detroit 3 manufacturer vehicles accounted for 69.6 percent of total rental car purchases, compared to 80 percent in 2006.
Risk vehicles account for more than 65 percent of units in service in 2010, and an even higher percentage of vehicles purchased. Average auction prices for both rental risk and repurchase vehicles remain above prior-year levels, with repurchase vehicle values remaining at record-high levels since the second half of 2009.

LEASING AND REPOSSESSIONS
In the first half of 2010, auto ABS issuance totaled $34 billion, up 35 percent from its year-ago level.
After reaching a peak of 1.9 million units in 2009, total repossession volumes are expected to decline 11 percent to 1.7 million vehicles in 2010.
After falling to 1.1 million units in 2009, new lease originations are estimated to increase 33 percent in 2010. Still, due to low lease originations in recent years, off-lease volumes will continue to decline dramatically through 2012.

COMMERCIAL AND GOVERNMENT FLEETS
In the first half of 2010, commercial fleets bought 227,200 vehicles, up 34 percent from the same period in 2009, but still one-third less than the 2008 level. By year’s end, total commercial fleet vehicles are expected to reach close to 475,000, which would represent a 37 percent increase.
Government fleets purchased 9 percent fewer vehicles in the first half of 2010.
The shortage of used vehicles in the auction lanes has brought strong demand and prices for end-of-service fleet vehicles.

SALVAGE
In the first half of 2010, the number of vehicles remarketed through salvage auctions declined approximately 5 percent, and it is unlikely that salvage volume will rebound until the economic recovery gains enough momentum that vehicle owners are encouraged to scrap rather than repair damaged vehicles.

 

^

This is why I stopped buying cars, especially from the auctions. The wholesale values are up, but on the retail side people aren't warming up to the fact that EVERYTHING is going up these days. I have 3 lease returns in front of my office that are so clean, they need nothing. Detail it and it's ready to sell. BUT, on average, the banks are asking about $2,000 over what they are worth. But guess what? If I don't buy it , the car goes to the auction and they will very well get the money they want for the car. It's nuts!

2008 Mazda CX7 AWD Grand Touring. 4,300 (four thousand three hundred miles!) on it.
Bank wants about $2,000 more than what it's worth



2008 Mazda Tribute i 4WD - 26,000 miles on it. Bank wants about $3,000 more than it's worth



2008 Toyota Camry LE - 14,000 miles. Bank wants about $2500 over what it's worth.

 

^
Are you saying the banks want almost retail price for the 3 vehicles ?

What is the difference between the Manheim auctions and Adesa auctions in the NY/NJ area ? I was told Honda/Acura moved from Manheim's NJ location to Adesa.

 

I'm saying that the cars in general are more expensive than they should be. But when you take a car you paid top dollar for and try to sell it retail, customers lowball and want to pay less than what I paid for it. It's happened all too often to me recently. Makes me wonder who the bad guy really is sometime, a dealer (me) running a straight up and honest business, or a sneaky customer who only cares about the best price and nothing else.

As for the auction moves for Honda/Acura,they did go to Adesa a few months ago. I hear there's more crap at Adesa, and because of what people have told me, I never cared to go there. But with Honda/Acura moving over to Adesa, that should bring a little more quality there. The NJ Adesa location is decent, but the one on LI I heard sucks...but that was before a few of the makes recently moved over to there.

 

The '08 Tribute...I would have to BUY it for $15,300. The MSRP when new is $22,600. Makes any sense to you at all??

 

The quality of vehicles at adesa has def gone down in the 2 years they have owned the local auction. Some of the manheim workers that come in say that also.

 

Dude, BMWs don't hold their value that well.

Banks are looking for any way to boost their profits in this economy and I guess that includes minimizing their losses too.

 

Only if you can sell it for $17,500. with 4 weeks.

 

It's the classic "supply vs. demand" ....very tight supply of 2-4 year old cars these days. This will not get better unless there is a double dip in the economy. Also, 2008 was a very bad year for new car sales.... next year will not see too many off lease cars flooding the market.

 

I would just tell the sneaky customer to go look up the Black Book trade-in value for a "clean" vehicle, that you have overhead costs, and are in the business to make a decent living. It amazes me to this day you have people going into new car dealers, expecting to pay below invoice price (net of rebates and dealer incentives)and still ask for free goodies.


If Adesa is so-so, why would Honda/Acura move over ? Is it because they will charge less on the seller's auction fee ?

 

yes, yes and yes. I see the same cars I saw a year ago selling for more $. It's insane what happened to the used car market, but until people start buying new cars, it won't change. Used cars are much more appealing to people purchasing vehicles right now because they want to lose the least amount of money on the depreciating asset we call vehicles.

 

The 2008 CX7 with 4,300 miles...Residual on the lease is $18,500 approximately, so after this lease that I delivered to the customer, they can buy for that amount +tax. The way it works with Mazda, the vehicle has to get grounded noting the mileage, and Mazda Credit then spits out a price that the dealer can buy it for. I gave the VIN and miles to the dealer to get a preliminary quote, and the $18,500 residual purchase amount ballooned to over $20,500. Isn't it sad that a dealer has to pay more to purchase the car than the customer themselves if they bought it after the lease? It's craziness I tell you! I just dropped off/returned the car and picked up a new Mazda CX9 for another customer. There's no way I'm overpaying that much for a car like that, low miles or not.

 

Why dose that amaze you?

"People" want what they can get. This is always the case in life isn't it? People want the best deal they can get. Add to that, the fact that most "people" have a general mistrust of car dealerships, and you get the "sneaky customer" who wants what they can get from the poor car dealership.

If used car dealers are complaining about prices they pay for their inventory, how do you think "the people" must feel, when they look at a new or used car and their jaw hits the ground when they see the price?

 

lol, the local paper had a 2004 ranger xlt advertised for 18k. I wasn't looking for a car, but sometimes these things are obscenely overpriced. I looked up the kbb and it was barely 12k retail excellent.

 

And so it will sit rotting on the lot...unless someone HAS to have an 04 Ranger at 6K above kbb...

 

I agree pttl. I don't have any sympathy for the dealers. They will try and squeeze you for every last dime they can get, believe me. Every transaction has a product, a seller who has a low price he will accept, and a buyer who has a high price he will pay. If all three meet at the same number you have a sale. If not, you don't. Simple.

A customer is certainly not in the wrong for wanting to pay as little as possible for a car. Hell, I could give two shits what the dealer's issues are, the only question is: Do you want the sale or not?

 

I might be taking in a 2007 Acura MDX Bas in Polished Metal Metallic with Ebony Interior, has about 49k miles on it....Any interest?

 

Very busy August...A few cars I sold/delivered in August. I did set a personal record this month, and considering the change in economy in 2010, this is the first time I sold this many cars since 2008.

2011 A4 6sp Prem Plus/Nav/18" Sport Pkg



2011 A5 Prem Plus with Nav



2010 IS250C



2011 BMW 535i



2011 A5 Prem Plus with Nav and 19" Wheel Package


2011 BMW 750i xDrive



2011 BMW 328i xDrive Coupe - Loaded



2011 Audi A5 6 Speed Premium




2010 MB E63 AMG


I'll tell you this much...Audi A5's not easy to get/find these days. Each one took a few weeks before I was able to locate and deliver...

 

yeah A5 is one of the hardest cars to find for the right price. they fly like supplies do whenever a hurricane hits, but constantly. and even harder S5. People are willing to pay crazy money for these cars.

 

^^
Were all of those 2011s used cars? Freakin' nice.

 

New not used. I do new and used cars..

 

Do you negotiate better deals on new cars than the average person? I'm just wondering why someone would go to you on a new car than straight to a dealer.

 

They have a lot of money and don't feel like fucking around with a sales donkey?

Shoof gets a lot of leases for people and they just come to his joint and pick up the car. No finance department rustproofing bullshit they have to deal with.

I'd rather deal with Shoof any day of the week (and I have).

 

How was the drive in the new 535?

 

e63 droooooooooooollllllllll

 

I don't necessarily only deal with wealthy people and get only high end cars. I get any car for anyone. I don't discriminate I did a ton of Toyota's, Honda's, Nissan's, VW's this month too..

As for delivering, they don't come to me, I go to them. I deliver door to door 99.9% of the time. I've even driven cars down to FL for some of my customer's down there..

And thank you

 

I actually liked it - a lot. I have another 535xi on order for another customer, but it's a while away because they are only just starting production of the xi model. Premium 2, Sport, etc...The customer has a 535xi 6speed that I got him and wanted another 6sp but it looks like you can only get a 535i in manual for now..

 

I love the new 5 series.

My director is looking at either a 5 series or a Cayenne sometime in Spring of next year.