Used auto dealership lots. Price movement

[Dacotensis]

I've never bought off a used lot before.

Generally, how much movement do these guys have in price?
10%? More?
I'm looking at a truck in the $20,000 range.
Can these guys afford to drop 20% or 30%?

[fn1949]

Cam Clark Ford.

[dumoulin]

Try 50%! Many used lots buy from dealer auctions, insurance compagnies or directly from car rental outfits. I would not buy a vehicle from a used lot. I'd rather buy one privately and have it checked out and go from there.

I'm not saying that used car lots aren honest, I'm just saying some aren't. I recall one putting sawdust in a rear end to tighten it up and muffle the whine and stripping parts from one to Frankenstein another.

I'd look into lease buy backs. I always had good luck that way. You pay a tad more but the risks are lower.

[Dacotensis]

Sawdust?

I'm looking at an 09 silverado 140,000 km
3500

It better not have diff problems.
Or any problem.

You think 50% of list price? Wow!

[Ennyindabenny]

Banana peels work better in the diff.

[stinkynuts]

Originally Posted by Dacotensis

Sawdust?

I'm looking at an 09 silverado 140,000 km
3500

It better not have diff problems.
Or any problem.

You think 50% of list price? Wow!

here is what I do usually I go on the web and try to find similar vehicles wheater they are a private sale or on a lot caompre price to make sure it is in the ball park and reasonably priced then I usually would think I could get about 10-20% off

[Sledhead71]

Hand them a check for the price you want to pay, tell them if they won't accept your offer they can tear the check up at the end of the day.

Bought my last used one this way, salesman said there is no way they would accept my offer... I marched into the sales managers office, shook his hand and left the check on his desk.. He laughed and said nope, I walked away and said call me at the end of the day when you tear up the check then..

Couple hours later, call from the sales manager saying come pick up your caddy.. I was 15 K under what they wanted as their best price...

Funny thing is I was getting my oil changed and was just looking around the lot when I noticed the truck... Guess my attitude was I could care less if I got the deal or not, obviously there was "room" to wiggle in their price.

[Scottmisfits]

I've had good luck with used car lots by following a couple simple rules. Investigate what they go for in private sales. I've never gone more than 10% higher than that. And once they have accepted a price only offer, take it for a vehicle inspection, off site, third party. If it passes, pay the extra few dollars to have that done and sign the papers. Tell the dealership that if it doesn't pass, you're not taking the vehicle and won't pay for the vehicle inspection. If they are a stand up lot, they will agree to those terms without even thinking about it. If they don't agree, don't buy.

[dumoulin]

Originally Posted by Scottmisfits

I've had good luck with used car lots by following a couple simple rules. Investigate what they go for in private sales. I've never gone more than 10% higher than that. And once they have accepted a price only offer, take it for a vehicle inspection, off site, third party. If it passes, pay the extra few dollars to have that done and sign the papers. Tell the dealership that if it doesn't pass, you're not taking the vehicle and won't pay for the vehicle inspection. If they are a stand up lot, they will agree to those terms without even thinking about it. If they don't agree, don't buy.

Smart.

[bison]

They are like pawn stars
Buy low sell high.

Only pawn stars are more honest

[dumoulin]

Originally Posted by Dacotensis

Sawdust?

I'm looking at an 09 silverado 140,000 km
3500

It better not have diff problems.
Or any problem.

You think 50% of list price? Wow!

Yup! I some cases it's that much.

An 09 duramax with that mileage should go for 17-19k if it's super clean. A gas jobbies should go for 15-16k.

For sh!ts and giggles, go to auctions and check it out for yourself.

[marlin1]

Originally Posted by dumoulin

Yup! I some cases it's that much.

An 09 duramax with that mileage should go for 17-19k if it's super clean. A gas jobbies should go for 15-16k.

For sh!ts and giggles, go to auctions and check it out for yourself.

a lot of used auto dealers get stock from auctions so this makes sense , cut out the middle man but you are taking a chance at the auction sure

[RescueDiver]

Originally Posted by dumoulin

Try 50%! Many used lots buy from dealer auctions, insurance compagnies or directly from car rental outfits. I would not buy a vehicle from a used lot. I'd rather buy one privately and have it checked out and go from there.

I'm not saying that used car lots aren honest, I'm just saying some aren't. I recall one putting sawdust in a rear end to tighten it up and muffle the whine and stripping parts from one to Frankenstein another.

I'd look into lease buy backs. I always had good luck that way. You pay a tad more but the risks are lower.

Agreed!

[wags]

So wow on some of these comments. Ignorance is bliss I suppose.

The truth of the matter is there is no set price that a dealer, new or used, marks up their stock (as a general statement).

Some lots not withstanding (like your sawdust in the differential example), they purchase a vehicle, run it through inspection, repair as necessary and put on the lot at a price that is a) comparable to fair market value or b) covers the cost of the purchase and repairs put into the vehicle.

So example - purchase a car for $5000, replace the windshield, brakes, tires, ball joints and CV Joints for an additional $2500. That's now $7500 'into' this vehicle. Perhaps black book on this car is 5000 - 8000, so it's put on the lot for $10,000 (or $9,999 for the ones with some marketing background). If sold at full price, that's $2500 profit on the car. It's equatable to 25% markup, so offering 50% less that asking price is not going to get you anywhere. With that being said, the dealer may buy the car for $3000, put $500 into a windshield, and still be listed at $10000 as that's the fair market value. Of course, they shouldn't accept a $5000 offer as that's considerably lower than market value. The ones that do, are the ones to be worried about!

Now like everything, from selling cars to couches to computer to snow blades to tires or alcohol or whatever, there's good and bad people in the business.

The best choice you can make, as has already been mentioned here, is to research the vehicle you want to buy, and see what it is selling for in the market. Try and find one that has similar options and mileage as what you're looking at for the fairest comparison. Before negotiating a price, ask to take it for an independent inspection (this is where you'll find sawdust in your differential for example). Take that inspection back and either return the vehicle or negotiate a price based on the potential repairs you may have to incur. There are also online history sites to pull vehicles history. I would avoid vehicles from the east as the salt content is very bad on the vehicles. One post mentioned the rust covered by paint. An easy way to tell if a vehicle is from the east is to pop the hood and have a look. The engine compartments are well visible with rusting all over.

At the end of the day, most people on car lots, new or used, or good honest people trying to feed their families

IMO, private sales are the more risky, as there are no regulations governing the sales. You have no protection for yourself. But again, the more homework you do, the more intelligent decision you will be able to make.

GL on your vehicle hunt.

Cheers

[Redfrog]

Originally Posted by wags

So wow on some of these comments. Ignorance is bliss I suppose.

The truth of the matter is there is no set price that a dealer, new or used, marks up their stock (as a general statement).

Some lots not withstanding (like your sawdust in the differential example), they purchase a vehicle, run it through inspection, repair as necessary and put on the lot at a price that is a) comparable to fair market value or b) covers the cost of the purchase and repairs put into the vehicle.

So example - purchase a car for $5000, replace the windshield, brakes, tires, ball joints and CV Joints for an additional $2500. That's now $7500 'into' this vehicle. Perhaps black book on this car is 5000 - 8000, so it's put on the lot for $10,000 (or $9,999 for the ones with some marketing background). If sold at full price, that's $2500 profit on the car. It's equatable to 25% markup, so offering 50% less that asking price is not going to get you anywhere. With that being said, the dealer may buy the car for $3000, put $500 into a windshield, and still be listed at $10000 as that's the fair market value. Of course, they shouldn't accept a $5000 offer as that's considerably lower than market value. The ones that do, are the ones to be worried about!

Now like everything, from selling cars to couches to computer to snow blades to tires or alcohol or whatever, there's good and bad people in the business.

The best choice you can make, as has already been mentioned here, is to research the vehicle you want to buy, and see what it is selling for in the market. Try and find one that has similar options and mileage as what you're looking at for the fairest comparison. Before negotiating a price, ask to take it for an independent inspection (this is where you'll find sawdust in your differential for example). Take that inspection back and either return the vehicle or negotiate a price based on the potential repairs you may have to incur. There are also online history sites to pull vehicles history. I would avoid vehicles from the east as the salt content is very bad on the vehicles. One post mentioned the rust covered by paint. An easy way to tell if a vehicle is from the east is to pop the hood and have a look. The engine compartments are well visible with rusting all over.

At the end of the day, most people on car lots, new or used, or good honest people trying to feed their families

IMO, private sales are the more risky, as there are no regulations governing the sales. You have no protection for yourself. But again, the more homework you do, the more intelligent decision you will be able to make.

GL on your vehicle hunt.

Cheers

Might want to check your math. $2500 profit is not a 25% markup on $7500.

[Jezter]

Originally Posted by wags

IMO, private sales are the more risky, as there are no regulations governing the sales. You have no protection for yourself. But again, the more homework you do, the more intelligent decision you will be able to make.

GL on your vehicle hunt.

Cheers

I find this a really odd reason but each to their own I guess.
I don't think there are any difference in "regulations governing the sales" or any regulations at all whether its private or through a dealer.

[HyperMOA]

Originally Posted by dumoulin

I'd look into lease buy backs. I always had good luck that way. You pay a tad more but the risks are lower.

This is actually something that I try to avoid. In my experience when somebody owns something they take care of it and may invariably sell a good used vehicle.

I have 3 friends that leased vehicles and did the only oil change on the vehicle a week before returning it. I just shake my head as a mechanic, and they all have told me basically the same thing. "Why should I pay to change oil if I'm just giving it back." It will last without blowing up, and if it does its warranty and they just claim they do their own oil changes and have no receipts.

[bubba 96]

Originally Posted by fn1949

Cam Clark Ford.

Sure if ya want it from behind with no lube, go to cam Clark...

[Kim473]

Check, newcarselloff.com
Dealers selling last years new and used cars and trucks at discount prices. Can save 10 - 40% off suggested list price of a new truck. Some great deals there. Worth a few mins to look at. Saw a new 2013 truck there that I would have payed the same price today that I payed in 2004 for my truck.

[grouse_hunter]

What about buying a piece of construction equipment from a used lot. Is 25%-30% reasonable to knock off the price?