Car Dealerships- i just... (1 Viewer)

efil4stnias

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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? ?
 

Super44

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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.

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.
It seems to me it would be the opposite. The longer a car has been on the lot, the more a incentives a dealer will give to get it off the lot, especially when trying to clear out the year end inventory to make way for new incoming models.

I mean, if I'm running a dealership, good deals on cars sitting on the lot and full price on more popular vehicles.
Here is how it works.

It depends from manufacturer to manufacturer. Manufacturers have what they call “hold back” incentives. Typically, the hold back incentive (bonus paid to the dealership) is like this, though there are variances.

Car delivered and sold in the 1st 30 days; $600.
Car delivered and sold in days 31-60; $300.
Car delivered and sold in days 61-90: $150.

It is quite the opposite from what a lot of people would think. You can ask to see the invoice date, on the specific car you like. If they do not want to show you, tell them simply; “You want to know how long the car has been sitting on the lot”. If they ask you why, tell them straight up; “I know there are hold back incentives to dealers and I want to know the date of delivery to this dealership”. Plain and simple and to the point. If they want to hold back, tell them “thank you for their time. I will be buying somewhere else”. You have to be to the point, decisive and determined to WALK! Be the one in charge of the deal. It is YOUR money, not theirs!
 

Super44

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this all sounds plausible and probably very sage advice
but DANG is that a nuts system
It is very nuts, no doubt! But car dealers very well know the majority of people coming in already know the specific model and price the buyer expects to pay. They know ALL of the sites buyers have access to, to do their research. The key is, when you walk into the showroom, you have got to have your number you will pay; nothing more. And NEVER, I mean NEVER answer this question when asked by the salesman. And they ask EVERY buyer. “WHAT KIND OF NOTE ARE YOU LOOKING TO PAY?” The reason being; is they can give you a decent price on the car, but hose you on the financing rate. I always reply; “WHAT IS THE PRICE YOU ARE WILLING TO SELL ME THE CAR FOR?”. They go into double talk. LOL.
 

Rickboy

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Carmax is fairly good but they can be spotty for trade in values. They offered me $59K for my 2019 Raptor. GiveMeTheVIN.com offered me $65K. Resale values right now are skyrocketing on the right vehicles. Trucks are the right vehicles since several production lines have been shut down. I actually paid $61K for my Raptor. This is the first time I’ve ever MADE money selling a car I bought new.

I’m going to go with just one car for a year or so and save up for the new Raptor or the CyberTruck.
 

Mr. Blue Sky

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Carmax is fairly good but they can be spotty for trade in values. They offered me $59K for my 2019 Raptor. GiveMeTheVIN.com offered me $65K. Resale values right now are skyrocketing on the right vehicles. Trucks are the right vehicles since several production lines have been shut down. I actually paid $61K for my Raptor. This is the first time I’ve ever MADE money selling a car I bought new.

I’m going to go with just one car for a year or so and save up for the new Raptor or the CyberTruck.




What are your thoughts on the new Raptor competitor truck from Ram, I believe it’s called the TRX?

I know you have a history as a Jeep guy, so might want to keep it in the family.
 

brandon8283

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Skip all the nonsense.

Sell your car private party for highest sale price.

Buy your next vehicle with cash. Negotiation is a million times easier when you have cash in hand. They can’t hose you on financing. They can’t hose you on trade-in. The only discussion is the sale price, which they also can’t hose you on, because you can’t pay with more money than you have.
 

Dago

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Skip all the nonsense.

Sell your car private party for highest sale price.

Buy your next vehicle with cash. Negotiation is a million times easier when you have cash in hand. They can’t hose you on financing. They can’t hose you on trade-in. The only discussion is the sale price, which they also can’t hose you on, because you can’t pay with more money than you have.
Private party is easy when the price is low enough for a cash deal for the general public. The higher the price, the less people who can pay cash or who will take a risk from a private seller

I actually like car buying...used to be in sales so I see it as a competition.
 

guidomerkinsrules

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Private party is easy when the price is low enough for a cash deal for the general public. The higher the price, the less people who can pay cash or who will take a risk from a private seller

I actually like car buying...used to be in sales so I see it as a competition.
But it’s not a competition- in competition there’s a clear goal and generally agreed upon rules
This isn’t even a pool hustle
 

tenordas

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Seems like it's a thing among auto dealers. My nephew just bought a truck, and brought his Mercedes in to talk trade. He does body work for a living, so he's in the business and knows a LOT of dealers, shop people, etc. He's in San Antonio, but came over near Houston because that's where a dealer was who had the truck he wanted (it's hard to find, apparently).

Needless to say, he knew the exact BB value of his car, which is slightly more than 9K on the low end. The dealer offered him 4K and refused to budge, despite all the information my nephew had and told him to his face. He told him no way. He also made the guy knock money off the truck because they tried to charge him for the tinted windows. He told them he wanted a credit because they used crappy tinting so he was going to have to remove so he put on tint that's actually quality. They weren't happy about, but they took off the charge and and a small amount more. He's really good at this.

Even so, he was at an impasse with his old car. They wouldn't budge from 4K, so he ended up leaving the car with us. He'll get it in a few weeks and bring it back to San Antonio to any number of places where he knows he can get the actual value for it.

I don't understand the mindset of the dealer even remotely. I'm sure they want to make top dollar, but instead they didn't get the car at all, which means they can't make anything since they don't have it to sell. :shrug:
 

bigdaddysaints

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I remember a thread on here a few years ago about a guy complaining about people negotiating prices on new cars and saying they should pay sticker price. saying you wouldn't go to Wal-Mart and negotiate a price on a new TV.
I may not on a TV, but I have on furniture, appliances and a house. and every time I got a lower price than what was listed.
On my last new car when we couldn't agree on a price, we left that night without the car. a few days later, he called me and made the deal. my wife was mad at first, she really wanted the car that night. I am not good at playing hardball, that was the first time I ever really stuck to my guns.
 
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Dago

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But it’s not a competition- in competition there’s a clear goal and generally agreed upon rules
This isn’t even a pool hustle
I disagree. A buyer has access to enough info these days to make good, informed decisions and to know what is acceptable before walking in the door. Other than that, it's just a willingness to walk away.

The info in this thread alone is enough to get anybody a solid deal on a new car
 

superchuck500

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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? ?
Always go to CarMax first you dingbat. Their offers are good for seven days.
 
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Consumer reports used to do a great little report on a vehicle. For 15$ or so, you could get the manufacturer invoice by zip code for as specific vehicle. You'd need the option codes for it but it was very detailed. When I used it, I knew the vehicle had 600 in holdback and I offered 100$ over invoice leaving the holdback for them. Brought a 22k ish sticker to 17.5k. Warned them that i'd get up and walk off they tried VIN etching or mysterious coating scams in finance. I also walked in with a approved loan at a rate I was happy with large enough to cover the sale price. I always give them the chance to beat that rate but they usually can't unless you work in some more down payment.

Last time I tried to get the consumer report, it sent me to true car which is not nearly the same.
 

nolaswede

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Just bought a new car, my car got totaled when someone ran a stop sign. Anyway, i do no like to deal with annoying car sales people, but tough to avoid them all together when you are buying a new car. I’m sure there a ways to get the absolute lowest price, but the last 3 times I bought a new car, I go on Cars.com etc and search for the vehicle that I want (within 500 miles etc). Last few times i found the lowest price in Miami etc, ask them for the lowest price out the door. Once I get the price I’m happy with, I present it to a few of the local dealers. The usually say no way, then after a while one dealership will give in. Sometimes the price in Miami, etc, is assuming I will finance through them, but obviously I don’t mention that. I usually say I spend a lot of time in Florida, but I would prefer to buy it local if possible. Have been happy with the outcome, especially since there is no way I will sit in a cubicle for half a day!
 

0rion

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If you figure out dealerships please let the rest of us know. The last time I was truck shopping I found the one I wanted. Went there and we got to within $1000 of where we needed to be. They would not come down that $1000. They kept asking where I wanted my monthly payment. I wanted it where that $1000 would have put me. I left. Bought a different truck but kept an eye on that one. They lowered the price $2000 before it sold. They had me in the building ready to sign and refused to budge over $1000 and they still were willing to let me walk even though they knew my offer was fair.
 

BELOWSEALEVEL

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I like the little guy dealerships.
Support small business
 

Rickboy

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What are your thoughts on the new Raptor competitor truck from Ram, I believe it’s called the TRX?

I know you have a history as a Jeep guy, so might want to keep it in the family.
I haven’t driven the TRX yet but my impression is that RAM put an over powered truck on the market and didn’t do nearly enough research into both the suspension and everything it takes to make a tough baha truck. The Raptor was built from racing and the experience gained from it. That’s why the TRX has suffered transmission failures due to an improperly placed (or shielded) cooling line. They‘ve also used plastic mounts to hold the shock reservoirs. Those mounts have been shown to break rather easily. Also the TRX is nose heavy for jumps.

Notice, that RAM’s videos of the TRX are pretty much on flat ground. Compare that to the video of the Gen 3 Raptor. Ford showed that truck going over a multitude of serious terrain. IMO, RAM built one helluva an engine in the Hellcat, but they didn’t built a truck to handle it. Ford built an actual race truck. One that has actually been in races and even won them.

I have opinions.. hahahahaha
 

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