Car Dealerships- i just...

efil4stnias said
Wife wants QX 60. found one locally - went to test drive. Fantastic. So they take ours for a spin to get trade in value.

after 20 min, he sits down and says $9k. ( KBB anywhere between $10,200 and $12k ) Retail i see them go for low $15k to 19k ( same model/trim/mileage ) I looked at him directly and said thats insulting. I know they have to make $$$ but this was 3k below high end and 6-8k below retail.

We left and went to CarMax who just sent us trade in offer of $14k

thats a 5k differential. How in the world can these two be almost 50% different? Can someone please help me understand or is it simply the dealer was going to low ball me to make as much on the resale as possible? ?

New car dealerships know when a customer walks in, they are there to buy, not to just look. They always are going to go low on a trade in. They make more money from trade ins, then anything! It is amazing. This is 90% of the time. They have the data. That said, always work the price of the car you want to purchase first, before negotiating the trade in. NEVER divulge you have a trade in, until after you are good on the purchase price of the new car. Then you negotiate with the finance manager on the financing terms. It is a 3 step process. And there are independent rewards for all 3 phases to the respective employees. Do not treat the trading/buying/financing of a new car as an all in one deal. You will get hosed. This is from someone that has a close connection in the business. And you must have the discipline to get up and walk away at any point where you know the deal being offered, is a low ball deal. Dealerships know if they do not get you, they will for sure get SOMEONE! Do not be the “someone”.

Oh, one other thing. When buying, ask the sales person, when the new car arrived on the lot. The longer it has been on the lot, the less wiggle room they have on the sales price. If it has been on the lot for less than 30 days, you have a better chance of getting a good price.