Used car dealer and their lots

AntMan530

Senior member
Dec 22, 2000
769
0
0
I found a car I really like but its at a used car lot.

I ran a carfax and it keep back okay; three owners from two different states

I want it but the used car dealer is asking way above KBB. Is this normal?

Asking price is 8K and the car is worth about 5K. It looks clean and nice...he is offering no warranty etc...

Why do they charge so much?
 

Gooberlx2

Lifer
May 4, 2001
15,381
6
91
If the KBB is $5K, I bet they only paid $3K at most. You should be able to knock 'em down.
 

d33pt

Diamond Member
Jan 12, 2001
5,654
1
81
just offer them what you feel it's worth to you. check autotrader for similar cars and use that to make a good offer. sometimes kbb is really low too, so you need to figure out what FMV for the car is.
 

flavio

Diamond Member
Oct 9, 1999
6,823
1
76
I used to work at a big dealership selling on the used lot. Most dealers keep records of every cost associated with a car...what they paid for it, detailing, any repairs, tires, etc.

You can ask to see their cost and negotiate how much over their cost your willing to pay. Depending on the car and how long it's been sitting there this could be as little as $50 or $200-300 is probably a better bet.
 

ebeattie

Senior member
May 22, 2005
328
0
0
3K over BB seems high. granted, they may have some money invested into it. look at the tire and see how much "meat" they have on them. Pop the hood and see if it has been detailed.
Best bet is to test drive the car and see how she feels on the road. Also, ask about included warrenty. most places of a 30 day warrenty minimum. ask what they are willing to pay under warrenty. if the car is relatively new, it may still be covered under themanufacturers warrenty. I think 3 years 30k miles is a good ballpark for manufacturers warrenty.
 

BUTCH1

Lifer
Jul 15, 2000
20,433
1,769
126
Since this is going to be a "as is" sale take the car to a mechanic and have it gone over.
I was once going to buy a Cutlass off a local used lot, took it to a local mechanic for a
look-see, he listened to to motor with a stethoscope and told me "don't bother, the
bearings are shot". Took car back and did not buy. Best $50 I ever spent...
 

AntMan530

Senior member
Dec 22, 2000
769
0
0
very good tips all...I'll go and see what they say tommorow...look forward to an update and some pictures...

 

angminas

Diamond Member
Dec 17, 2006
3,331
26
91
Maybe he noticed how much you like the car. That's likely to drive the price up.
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
27,113
925
126
Could the car be one that is hard to find, or exceptionally pristine, low mileage, etc?

A book is a guide, but on some cars, you have to throw the book away.

If it's nothing special, then make an appropriate offer. If they wont meet your terms, then walk. There is always another car to buy.
 

StrangeRanger

Golden Member
Oct 9, 1999
1,316
0
0
KBB, Edmunds, NADA etc are all simply guides. Just b/c it's in a book doesn't mean squat. You don't know, but could probably find out by asking, how much they've got invested in the car. As someone mentioned, is it a hard to find vehicle w/ certain options? Is it especially clean and low miles?
Do some research and see what the SAME car is going for elsewhere. If you don't think it's worth the asking price, or what you can haggle to, then don't buy it. The dealer doesn't care, he'll sell it to someone else.
I did car sales for a long time, it's actually pretty fun, but the hours suck. And the one thing I hated most was people who came in whining that this or that book says the car is only worth this much. Fine, phuk face, go by it somewhere else for that price if you're so sure you can get it for that. What I'm trying to say is don't go to a dealer quoting BS numbers from some worthless source like KBB, NADA or Edmunds. Cars are like other commodities, they have a market value. If you MUST quote a book try using a more realistic source like a Galves report or similar.
Instead try approaching the dealer and politely ask him what he's basing his price on. And I'm sure he'll politely ask you what you're basing your offer on. Doing things this way most often ends up with a deal being worked out that makes both parties involved happy. Just remember, the sure fire way to irk your dealer and make the deal much harder to come to is to go in spewing nonsense for lame sources.
j
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
27,113
925
126
Originally posted by: StrangeRanger
KBB, Edmunds, NADA etc are all simply guides. Just b/c it's in a book doesn't mean squat. You don't know, but could probably find out by asking, how much they've got invested in the car. As someone mentioned, is it a hard to find vehicle w/ certain options? Is it especially clean and low miles?
Do some research and see what the SAME car is going for elsewhere. If you don't think it's worth the asking price, or what you can haggle to, then don't buy it. The dealer doesn't care, he'll sell it to someone else.
I did car sales for a long time, it's actually pretty fun, but the hours suck. And the one thing I hated most was people who came in whining that this or that book says the car is only worth this much. Fine, phuk face, go by it somewhere else for that price if you're so sure you can get it for that. What I'm trying to say is don't go to a dealer quoting BS numbers from some worthless source like KBB, NADA or Edmunds. Cars are like other commodities, they have a market value. If you MUST quote a book try using a more realistic source like a Galves report or similar.
Instead try approaching the dealer and politely ask him what he's basing his price on. And I'm sure he'll politely ask you what you're basing your offer on. Doing things this way most often ends up with a deal being worked out that makes both parties involved happy. Just remember, the sure fire way to irk your dealer and make the deal much harder to come to is to go in spewing nonsense for lame sources.
j

Well put. I've been in the business for the past 25 years, on and off. The public has become way too adapted to buying by the book. I can't count how many strange, confused faces I've seen, when "car buying school" doesn't work for them. Each deal is unique. The business of buying and selling cars is different in each situation. Nothing is standard.

 

Zysoclaplem

Diamond Member
Sep 26, 2003
8,803
0
0
Offer and they will counter offer. Then offer again. Seem disinterested. Don't pay more than you want to for this car.
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
27,113
925
126
Originally posted by: j00fek
bring cash, money talks

False! The dealer does not care where the money comes from. Bring cash, if you have bad credit. If you have good credit, money is money, cash or contract. Infact, the dealer might make more, if you finance it.

What you have been taught comes from the old school days, when banks charged the dealer a "discount fee" for buying their contract. Those days are gone, except in the case of bad credit.

 

angminas

Diamond Member
Dec 17, 2006
3,331
26
91
Originally posted by: compuwiz1

False!

False! At least in enough situations that putting it so simply is not helpful. People are not robots, and the sight of a large wad of real money can be powerful. I bought a car once for 12% under what he said was his absolute lowest price, less than he paid for it, because I left and came back with green in my hand. Paying cash doesn't always help, to be sure, but it does sometimes. It will also save $ on finance charges, which lowers the effective price of the car.
 

flavio

Diamond Member
Oct 9, 1999
6,823
1
76
When I worked for a dealer typical markup was about $2500-3000. If a car cost us $5000 the "asking price" would be $7500-8000.

We would certainly sell it for $5300 though after an hour of ridiculous negotiating. Like I said find out their real cost and make the deal up from there....don't work the deal down from "asking price" as it's a load of crap.
 

hanoverphist

Diamond Member
Dec 7, 2006
9,928
23
76
Originally posted by: Gooberlx2
If the KBB is $5K, I bet they only paid $3K at most. You should be able to knock 'em down.

thats optimistic thinking they even paid 3k for it... if the KBB is 5k and they have it for 8k they are charging too much... unless its a sought-after car, in perfect condition and has the "blowjob" addon. check the paper and autotrader for the going rate for whatever car it is, then decide how badly you really want that particular car.
 

waggy

No Lifer
Dec 14, 2000
68,145
10
81
Originally posted by: angminas
Originally posted by: compuwiz1

False!

False! At least in enough situations that putting it so simply is not helpful. People are not robots, and the sight of a large wad of real money can be powerful. I bought a car once for 12% under what he said was his absolute lowest price, less than he paid for it, because I left and came back with green in my hand. Paying cash doesn't always help, to be sure, but it does sometimes. It will also save $ on finance charges, which lowers the effective price of the car.
heh you just think it did more for you.

money is money is money. it really does not matter if it is credit, cash or whatever. it just does not matter.

sure there are some shady small dealerships that will take cash so they can fudge the numbers. but on 95% of the dealerships it won't matter.


as fro the OP go in with a realistic offer (i like to do the price "out the door") if they say no leave. its really not that hard.
 
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