Could you please help me with the pricing for 2014 CRV - EX FWD 8000 miles on it? Dealer asking for $26,500 drive out. Is that a good deal?
Here's one way to "Price the demo."
Any idea if it was a demo or loaner car? Or maybe a buy-back? A buy-back could raise flags too - could be some lemon issue.
Dealer told me that the vehicle was taken back because of non-payment of loan. How can I make sure it is not a Lemon?
Carfax report looks ok.
Ah, a repo. Well, repo's happen.
One thing you could do is ask your own independent mechanic to do a pre-purchase inspection. But I'm assuming is has "most" of its warranty left and that should cover most stuff, at least for a while.
Does your drive-out price include DMV fees and taxes? It'll help others here comment on your price if they know the actual price of the car before fees.
Here is the price break up
Selling Price $24,750.00
Sales Tax $1,547.00
Deputy Service Fee $5.00
License Transfer Title $110.00
Documentary Fee $53.00
Inventory Tax $55.00
State Inspection $15.00
TMV for a Michigan zip code is $25,263.
So how much are 8,000 miles worth? The IRS would say around $4,000. Call it half that and the price isn't looking like a "great" deal. Over in the 2014 CR-V Prices Paid discussion, several people have recently reported getting a new 2014 CR-V for ~$1,000 to almost $2,000 below invoice (which is $24,513). Maybe I'm missing something but I think you can do better on the price.
The other fees look appropriate.
Thanks Stever for your guidance and with all the information provided by you and available on the site I am going to meet the dealer tomorrow.
The IRS doesn't say that miles are worth $0.50 each in depreciation. The standard mileage deduction for business is supposed to cover all costs of driving, including fuel, depreciation, maintenance, repair, etc... You take the standard mileage deduction so you don't have to track all of your expenses.
Most banks that lease cars (including demos) reduce the residual amount of the vehicle by $0.15-$0.25 per mile for excess mileage at the beginning of the lease. $0.15/mi. is a good rule of thumb for how much you could expect a dealer to discount a car for mileage (though, it's always better to ask for more).
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Yes, and for negotiating with dealers, I like to use the fifty cent number.
The leasing rule of thumb is a good one. You can also "compute" depreciation by looking at the True Cost to Own tool. Those numbers assume you drive 15,000 miles a year.
It's a bit scary to realize how much some cars can go down in value the first few years after you drive them off the lot.
All that said, it seems like dealers never really want to discount demos very much.
Amen to that!
American Honda does not give the dealer any compensation for "demos" or program cars. The dealer should be able to sell you a brand new non demo for the demo price. 2014 CRV EX AWD should be able to be for under 24,000 plus taxes and fees.
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