rjorge3

Ok gang, so here is the story, my friend loves my Type S, so he is in the market for one. Found one in MD that actually belonged to one of his co-workers who sold it to a dealer for exactly $19,500k (we wanted to kill him since he did not let us know LOL), with aprox 50k miles on it.

Now we saw the car adverstised by the dealer as they Certified it for $25,497. So that is a mark up of $5,994. I know that the certification process is worth something (since mine was certified and I love having the warranty), and his coworker told him the tires were gone, so most likely the dealer installed new tires, so we guessed another $1,000 spent by the dealer. What would be a fair price to pay for it, and of course having the dealer make a fair profit. I was thinking for him to ask for $22,100k. What do you guys think? I am calculating my numbers like this: $19,500(price they paid)+1,000 (new tires)+1,000 (Certification)+600(profit for them). Your input is greatly appreciated.

Thanks,

TLtrigirl

iTrader: (1)

certification is going to be close to $1K, tires 1K, any other things they had to do to recondition the vehicle (there will be an invoice) that's another 1k (brakes, fluids, pull dings, touch up, light detail), also about $700 for the extended warranty provided on the certification. so you're up to about $3700 (roughly). you really won't know what they serviced on the vehicle unless you ask when and if you look at it.

you offer them 22100...they are going to laugh at you. depending on the dealer the "internet" price is close to their bottomline. you may only have about $1500 to 2000 of negotiation. what is KBB, edmund's and nada say retail should be on the vehicle? regular retail and then CPO retail. these are better gauges. the thing is that there will be somebody out there willing to pay $24 for the car if its really clean and CPO'd.

rjorge3

Thanks for the quick reply. I see, I did not think about brakes and other stuff. I paid $24,500 for mine in early 2010 so I was also factoring deprecciation since it is an older model. But you raised good points. So if I add those number to give me an idea: $19,500 priced paid + plus $1k cert + $1k tires +$700 warranty,+$600 profit I come out at 22,800. Is that realistic for a dealer to accept $600 profit on a used car (of course they will try to get the highest possible), but is my calculated amount way to low? I have no idea of how much dealers usually make on used cars.

I was also thinking, since is close to 2012, the longer they hold it, the more desperate they will get an problably wanted to sell it for much less than the asking. I guess knowing the price they paid is messsing with mine and my friend's head LOL

TLtrigirl

iTrader: (1)

you forgot the reconditioning costs as well (add $1k). that brings total to $23800 (inclusive of $600 profit). its not likely they will go low. its a type-s and they usually sell within a week or two regardless of tranny. they are asking used cars are where the dealer makes bucks...not on new sales. where in MD did you see this car?

i think the lowest they will go will be $24k (at most). someone will be willing to pay 24500 which is $1k less than listed. depends....hit them at the end of the month...(like this week), they might be willing to let it go for $24k for a serious buyer (bonus for salesman> commission).

paperboy42190

iTrader: (7)

Okay, here's the thing, you can't really take into account how much the car was sold to the dealer for. Even though you know the exact amount, in the world of business it doesn't matter. For example, just because the dealer bought it for a low price does not mean he needs to pass the savings onto you. For friend-to-friend transactions, yes, they will most likely pass the savings onto you. But, this is a dealer we are talking about here and they are a business. Just remember that while you may know the price they got it for, other people interested in the car don't.

Steven Bell

iTrader: (2)

Jorge, just remember-offer less that you're wiling to pay and negotiate up to the price you're willing to pay.

JTS97Z28

iTrader: (4)

Just like TLtrigirl said they are going to laugh at you with any offer in the 22's so you can forget about that. Usually dealerships internet asking price is pretty much their bottom line give or take a few hundred dollars. You can go start low, but it might not get you very far and like mentioned above just because you know what the dealer paid means absolutely nothing. If the car is very clean with no accident history, no body work, and 1 owner I would say a good price to get it for would be in the 24's. Anything more and your beginning to creep up to low mileage 08 territory.

James

RainSupreme

I picked up mine for 24, 975 with a little over 36k

Turbonut

iTrader: (1)

In round numbers, dealers want to make $2/3,000 minimum on a used car. Years ago when I was close friends with a Chevy dealer, $2,000 was his threshold.
Now you may find that an independent dealer would be happy to make slightly less, but many will hedge on replacement parts and warranties at no cost.

FCVadi

iTrader: (3)

if anything ask them for the ionvoice/spend from 19,500 and up.. go in blatantly and say you know how much someone got for it and you would want a fair price.. if they truly have invoices for work.. cause that is the otehr thing to make sure they did the work.. then you will be around the 24k range.. but make them prove it... just cause they stick a certified sticker on it doesnt always mean they went through it

Rock2534

Indicating you know what the car was sold for might hurt your cause. They may not even want to haggle with you knowing that. I would keep that info to yourself and negotiate according.

rhafikjaan

Are used Tl-S prices going up or is it just me..

Mug

Also, when dealers take a trade in, don't they play a balancing game? For example, if you want 19.5 for your trade in, then your sales price is 30k on the new car. If you want 20.5 for your trade, than your new car is 31k.

Which could mean that the price on paper isn't always directly related to their profit.

mn2trance

Nope. Some of the prices I've seen have actually been going down. Then again, it depends on mileage too.

NAMco

iTrader: (3)

If I were you, I'd play hardball like I did with my car. Before I got my type-s for 19k, I was looking at an 08 base for 25k. I told him 22k walk out, he laughed and said no, I said I'm leaving. He stopped me 3 times and I was at 22k walk out. Of course the conversation went into much more detail, but don't let them punk you. My father bought a brand new 2011 Camry and they retail for 26k ish? My father walked in there and said "don't waste my time by pretending to go to the back and talk to someone. I'll pay 21k take it or leave it" The salesman said let me go just one time and my father said sure. Guy came back and said 23 and my father said thanks anyways. Guy said wait, went to the back, signed for 21k.

TL-Swag

There are a lot of things to take into account when buying a vehicle from a dealership. Obviously you could go to 5 different dealerships and get 5 different prices; ranging from a couple thousand, it all depends on the dealership. Is the car you're looking at showing a lot of interest, how many perspective buyers do they have for the car are all factors that add up. Gl though on your search!

silver3.5

$5994 markup from the purchased price seems reasonable. For example, a while ago I sold one of my cars to CarMax for $22K; they turned it around and listed it for $27K. It was eventually sold for $25500. My car required no reconditioning though as it had no dings, dents, scratches, etc...and I just got new tires on it.

Dealers are there to make money and like many mentioned, knowing their purchased price won't help you in the negotiation. But don't let them bully you; walk if you have to! No sense in keeping your pride by overpaying for it.

dragonsking91

dealers where you live have a HUGE % in mark up. listed as 26k and sold for 21k OTD? wow

JTS97Z28

iTrader: (4)

Nope they arent, but they just hold their value very well.

aIRpeACE

iTrader: (2)

$3000 profit at least for sure

cjTL

iTrader: (2)

Dealer markup is quite incredible. But they are in the market to make money after all. And it gives them wiggle room for haggling.