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Help Me Choose!

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  • isellhondasisellhondas Issaquah WashingtonPosts: 17,356
    That's true.

    If you were to invest two million (or more) dollars into a car dealership you would expect a decent return on your money I would hope.

    Otherwise, just keep those two million invested in conservative mutual funds and bonds and sit back and earn a ten percent return every year.

    But, some buyers don't think you are entitled to a profit. They think you should sell your cars for what you paid for them or even less. These same buyers demand top dollar for their ratty trade in that you hope some wholesaler will take at a break even profit to the store.

    I tried to maximize profits on every car I sold. That was my job and I was good at it. I didn't do this by lying or paying games. If I had to deeply discount a car and the deal made sense (important!) I would do what I had to do to make the deal happen.

    The people who were the cheapest grinders never left happy. They somehow left thinking that just maybe someone else somewhere could have bought that same car for less! These people were never loyal. They would give mediocre surveys and were difficult to deal with in the Service Department down the road.

    For me, it seemed like a small, miserable way to go through life but I suppose we are all different.

    Life is short...
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,356
    A lot of the "good ones" have left the business or retired early.

    They get tired or trying to treat people as they would like to be treated.

    This leaves the type you don't like.

    As a lifelong Retail Sales Manager including a very high level position I really thought I had seen it all. I thought I had seen the worst in customers. I dealt with shoplifters, liars and cheats but NOTHING could prepare me for some of the customers in the car business. The vast majority were great to deal with and we got along very well. There were a handful of others that have left me forever cynical!
  • backybacky Twin CitiesPosts: 18,628
    Exactly right... it's the salesperson's job to maximize profit on every car.

    So there's a lot more to buying a car at a good price than finding a nice, friendly, helpful salesperson at the dealership. I know some very nice car salespeople, and it was a pleasure dealing with them. But I didn't take their first offer... or second. Maybe not their third, either. I understand they're trying to maximize profit. I'm trying to get the lowest price I can. And it's always the salesperson's prerogative to tell me when they've gone as low as they can, to ensure they make enough profit on the deal. I respect that kind of honesty, as I know where I stand. And if it's a good price, I'll take it. If not, we'll shake hands and I'll move on.
  • suydamsuydam Posts: 884
    Sadly I have to agree with you. And from my perspective it's been a horrible experience ever since I started buying cars. I've actually had more satisfaction and less aggravation buying used. But once you go through the wringer hopefully you end up with a very nice vehicle that lasts a long time.
  • benjaminhbenjaminh Posts: 1,623
    edited August 2013
    All the new cars I've bought have been good experiences in terms of the salesperson. Probably a lot of that is luck. But I also try to make my own good fortune by doing a lot of research, knowing exactly what I want and knowing the numbers, and treating the salesperson with respect and good humor. If they like you and want to make you happy, often things go well and a good deal is achieved with smiles all around. I got $2700 off of my hard-to-find deep red 2013 Accord EXL navi just a few months after it was introduced.

    Buying and owning a good car is one of the many pleasures in life, imho. Not everyone is so fortunate. I used to not be so fortunate. Sounds silly, but I'm grateful now to own my good Accords, a 2008 and 2013. After decades of driving mostly sucky cars, they are are both excellent, and by far the best cars I've ever owned.
  • Hello all, I hope this is the right thread but I need some help deciding on what to do. My lease is up on my 2011 Acura tsx and its been a great car. Although my finances were better when I first got the car that's changed. Anyways to get to the point if I were to purchase my tsx after my lease is up my contract states it would probably be about 20k. So I started looking at cars at this price and even lower. I've got my eye on a new or 1 year old Kia optima. So which would be the better buy? Obviously the optima would come out cheaper and it's newer compared to my 3 year old tsx. But I'm sure the tsx has merits that surpass the optima. I want to look and compare everything on both cars because this next purchase I want to keep the car for a good 10-15 years. So it has to be long lasting. No expensive parts in case I need to repair. Insurance would be a key point too. Which would you go for? Thanks for all the help!
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,356
    " No expensive parts"....Good luck on that one!

    You can buy your leased Acura for it's residual. It isn't "about" any number. It is a hard, defined number.

    I am not a fan of Korean cars for a number of reasons but I know they have greatly improved in recent years.

    You are simply going to have to do what you deem the best route. If you have taken good care of your TSX and you like it, you'll be able to buy it for the residual which is a great deal.

    No "good" answer her. It's your decision.
  • sebring95sebring95 Posts: 3,225
    You need to figure out the market value of your TSX and compare that to the buy-out. If the buy-out is a fair deal and you really like your TSX then I think that would be a fairly safe bet. Anytime you KNOW the history/care/etc of a used car it should be worth more to you. Now if for some reason the buy-out is higher than what you can buy a similar TSX...then it may not make sense.

    Some of the new Kia's/Hyundai's are nice...but to keep one 10-15 years? I think the TSX would be a far better long-term car and you would enjoy it more. Average out the additional cost over 15 years and even a $5,000 premium looks pretty cheap.

    My experience with Acura is that the service/repairs really aren't that expensive if you find a good dealer or even an independent mechanic that specializes in honda/acura. Certainly nothing like many of the other "luxury" brands.
  • Thanks for your reply guys! Well my car based on kbb is worth 23.5k my residual is 20.4k from the top of my head. My lease is up in 5 months so I have time to think and not rush it. Also would there be any negotiating with the leasing co to lower or is the residual set in stone? I could also look at the 2010 tsx which runs about $17k and there's not a huge difference from 2010-2011.
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,356
    Residuals are set according to what they think the wholesale or auction values will be at lease end. If they set residuals too high as they sometimes do, they can take a beating when the cars fall short at the auctions.

    TSX's are nice cars but not all that popular. If you can buy a nice one for 20K, you will be doing OK.

    You can't negotiate a residual! That would be opening a can of worms and no different that if they decided to RAISE it at the end.

    Lastly, why buy a 2010 when you know the car you already have....unless....you know you've been sloppy with maintenance as some lessors can be sometomes.
  • Ive actually taken very good care of this car. Scheduled mentaince when it needed it. Never abused the the car. Inside is immaculate. Outside has a couple of dings from idiots who decided to park too close to me. But otherwise a great car and I love everything inside and outside. It's just the price but if its only a $5000 difference then it should offset over the long run. Correct?
  • suydamsuydam Posts: 884
    The 2011 TSX has outstanding reliability ratings so unless you want a bigger car, or better fuel economy, I'd keep it. But if you want something new and shiny, well ... each to his/her own.
  • Not at all. I don't care about new or not. I just figured if I was going to drop 20k on a car would I want a new one but in the process downgrade from an Acura to a Kia. Or just stick with the Acura. Also my insurance was quite high with the tsx I'm not sure if it has anything to do with it being a lease or not but a quick call to my ins co to see if there's a drop because I'm financing it.
  • benjaminhbenjaminh Posts: 1,623
    edited August 2013
    What about an Accord LX? It's only slightly more than a KIA, but gets better mpg, better safety ratings, has better visibility (KIA has the largest blind spots on the market, because of huge rear roof pillars), and has more standard equipment.

    Even in the last generation the Accord LX was missing some key things, such as bluetooth, alloy wheels, dual climate control, upgraded engine, etc.

    But now all of that is included in the LX.

    Check out this price from Crest Honda in Nashville. Similar prices on the LX are available in most of the country. My parents own one of these and they love it. This generation of Accord has a significantly upgraded and quieter interior. Some Honda fans, only half joking, call it the "Acura Accord." Coming from your TSX, I think you'd feel right at home. And financing is available from Honda: 1.9 for 5 years, or 0.9 for 3 years.

    2013 Honda Accord LX Sedan

    MSRP:$23,270
    Dealer Discount:$2,779
    True Price:$20,491
  • backybacky Twin CitiesPosts: 18,628
    You can't negotiate a residual!

    It IS possible to negotiate a residual. I have done it before, with NMAC, on a leased Sentra. When the lease was almost up, I called NMAC and made them an offer, lower than the residual on the contract, and they accepted it.

    Whether the residual on a specific leased car is negotiable is an open question. But it doesn't hurt to try... the worst that can happen is they say, "No".
  • greg128greg128 Posts: 330
    edited August 2013
    I am looking within the next year to replace my wife's Saturn Aura XR as it will be 6 years old and out of warranty. It has been a good car but I don't see any V-6 powered midsize cars from GM anymore. I like the power of a v-6 but do not want a 4cyl Turbo . I had some in the past which all had engine problems after 50-60k miles and as a result I am not convinced of their long term durability, regardless of the manufacturer. My cousin has a Turbo 4 cyl RDX and am not at all impressed with the powertrain.

    I would not consider Toyota or Mazda so that would leave me with a choice between Honda and VW. I am skeptical of VW reliability. I would consider the Honda Accord V-6 which looks like a nice car and reasonably priced even loaded up, but there are a ton of negative reviews for the V-6 model, mostly oil consumption and VCM problems. Can I reasonably believe those problems are in the past?
  • sebring95sebring95 Posts: 3,225
    Agree with Backy. All contracts are technically negotiable....but that doesn't mean any/all will do it. Some are insured against the residuals and really could care less if it's turned in even if they're under water. As mentioned, it never hurts to ask.
  • benjaminhbenjaminh Posts: 1,623
    edited August 2013
    I think Honda's V-6's are reliable these days. And because of the VCM, they get about the same mpg as many 4 cylinders. I've read that you can feel it when the VCM cuts off some cylinders and so you should give it an extensive test drive to see if you can live with that. Consumer Reports recommends the Accord, including the V-6, and they will not recommend something that they don't think will be reliable.

    http://www.consumerreports.org/cro/magazine/2013/04/top-picks-2013/index.htm

    "What it takes

    Top Picks must meet our criteria in three areas:

    Road test. Each must rank at or near the top of its category in overall test score.
    Reliability. Each must have earned an average or better predicted-reliability Rating, based on the problems Consumer Reports subscribers reported on 1.2 million vehicles in our latest Annual Auto Survey.
    Safety. Top Picks must perform adequately if tested in crash or rollover tests conducted by the government or insurance industry.

    Each model’s overall road-test score, predicted-reliability Rating, overall fuel economy, detailed pricing, and much more is available on their model pages. Prices reflect the sticker prices when we bought our tested cars.

    Midsized sedan
    Honda Accord

    The Accord was redesigned for 2013, and Honda nailed it, sending this sedan to the top of its class. This new model is roomy, nice to drive, well equipped, and very fuel efficient. With its four-cylinder engine, the Accord squeezes out 30 mpg overall and 40 on the highway, which is as good as the tiny Honda Fit. Higher-trim models have safety features seldom found in this category. And the Accord’s price is very reasonable: $23,270 to $30,860."
  • Would you spend 16-18k on an 05 ls430 w 80-100k mi or spend @26-28k on a 13 accord exl 4/6 cyl...there are pros and cons to both so chooses and explain your reasoning...this could be interesting debate...
  • backybacky Twin CitiesPosts: 18,628
    If I had $28k to spend on a car, it wouldn't be on an Accord. Probably something like a CPO 3 Series.

    You are comparing apples and oranges--a full sized luxury car with 100k miles, vs. a new, nicely equipped mid-sized family sedan that costs $10k more.

    Why not look at cars that are at least in the same price range? And same size class, e.g. used Lexus ES vs. new Accord EXL V6? e.g. you could get a low-miles CPO 2010 (maybe even a 2011) ES for $28k or less. Much more comparable to the Accord EXL V6 than the LS.
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