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The actual sales price is only $6,000, including the 18 month/20K mile warranty (and oil changes/minimal maintenance/check up every 5K). BTW they have to bring it in for the regular maintenance to keep the warranty (also makes it easier to keep the payments coming in). Something like 22.9% interest to a person with horrible credit, maybe a bankruptcy or two. They pay more because they are high risk and have no where else to go.
The catch, the boss knows most of these people NEED reliable transportation and do not have the money for extensive, if any repairs, so almost everything is covered for the 18 months. Only once did he ever have a big repair problem, wound up replacing the car as it cost him less than fixing it.
Then there are the simple dead beat credit risks. I think we only see 5% or less reposessed and know how to keep the 'good' customers.
In the end the boss says they are actually paying somewhere near $5,000 for the Taurus, $1,000 for the warranty and maintenance, and $1,700 in interest (if they go full term), $1,300 interest if they set up payroll deduction and all payments are made on time. He calls it an end of loan rebate.
BTW, what would happen if I walked onto the lot and asked to buy one of those Tauri for a reasonable retail pride, cash? Would I get it, or would I be sent on my way because I'm messing up the system?
Sounds like a good way to sell older cars, and the Taurus is the perfect car for the job... no resale, ok reliability, big and safe. And if you sell 40 of them, the occasional transmission isn't that big of a deal...
-Mathias
If you can come up with $6-7k for one of those, you can buy a similar version with much fewer miles for not much more.
Usually, though, he'd prefer the time payment plan for obvious reasons.
I agree, essentially a 100K Taurus, relatively reliable, easy parts availability, no resale value, makes for good profit at the BHPH.
It use to be the GM with the 3.1L, but the intake manifold gasket ongoing problems killed the reliable part. The Taurus/Sable wound up being a more profitable and reliable car.
With a wholesale value of "around" $5k, what can one buy that has some "nutz", to employ a yiddish expression. Station Wagons/Vans/SUVs is what I'm talking about; maybe maybe a small ecab truck, but cars and vans is where it's at.
It's a University Holiday today (and Fri, yay!), and it's the height of tumbleweed season, so I've been doing a little shopping. Found a 97 RAV4 (94k mi, 5sp, awd, 1 owner) that was quite nice, until I learned that the coolant is low -- "That can't be, I just had the head gasket done at 80k." Come again? The darned thing had a full ring job done, plus of course all new gaskets. Good grief. I drove it and really liked it.. it's a bit on the small side, but one could forigive that over the awd/stick combo. Of course, the owner wants $6,300 for it, and I'd be tempted at $5 without the fried engine. Toyota helped with the repair, I was impressed. "Excellent condition", except the tires are bald, one is losing air, she needed a jump start, and she transfered the plate to her new car. Good grief.
But anyway, I like the concept... so what would it be worth with the original engine?
What else is out there? A Taurus wagon would not be much fun, but get a lot of junk and a couple boats to the river... a Mercury Villager might be okay... 98s with some miles ought to be in that territory, and they age reasonably well... Explorer 4x4 with a stick would be cool, but my last experience with an older Ford was not encouraging... Any ideas, let me know... 'tis the season...
-Mathias
[BTW, there appears to be a real trend of new-car dealers encouraging people to sell their trades privately... I've spoken to quite a few lost souls this year... all about $2k north of where they should sell; but every car was in "excellent" condition.]
=====================================================
"Encouraged" would not be my word choice... When I inquired about a year ago at Bachman Volkswagen in Louisville, Kentucky, the sales manager lowballed my trade by about $4000 and mumbled something to the effect that I should sell it in the paper. I took it to CarMax and received its honest-to-goodness wholesale value (I don't know the figure off the top of my head, but it was in the $6500-6700 range). Because he was such a jerk about it, they lost my business and my family's business for good.
To quote: "I can't imagine owning any car worth over $1500 and not having more than liability."
Which I wholeheartedly agree with, except it's gotten so darned expensive that on sub-$5 cars, I prefer to self-insure... the problem around here is of course "my-fault" insurance, which means if I get rear-ended at a stop light, I'm out a car and no recourse.
-Mathias
2001 Sienna LE 4dr
quad seating, pwr stuff, steel wheels.
67k, no-sale blue/green ("sailfin blue")
Asking $11, strikes me as a reasonable asking price.
They either just got it, or it no-saled here:
4T3ZF13C51U330702
"12/14/2004 MI 67,721 Auto Auction REPORTED AT AUTO AUCTION"
Other than that, clean carsmack, one owner.. on the road since Sep '00, oh well.
Either way, it's a touch dear for my taste, but at least it's cheap to insure, and should hold its value. We had two of the things before, great vehicles.
-Mathias
The deal is more "WIN-WIN" than originally presented but I would not pay more than $2500 for a 2000 Ford Taurus with 100k miles. But that is me. Too many $300 repairs than on other models.
Location: Orlando Florida
Year/Make/Model: 2002 Isuzu Axiom 4 dr XS 2WD
Engine: 6 cylinder, auto
Mileage: 33800
Color: white
Condition: as far as I know excellent condition inside and out.
Up to date on maint., probably original tires.
Says she owes $19K and wants to trade to get out of her $500/month payment. I told her she's got a problem. Edmunds trade-in is $11800 and TMV is $13K. Any help with real world values would be greatly appreciated.
New leftover '04 Mazda 6 Wagon, light on options, but that still means all the standard stuff like pw,pl, cruise, fancy radio with steering wheel controls, V6, 17" bling wheels, and get this: [i]a 5 speed[/i]. Advertised in the paper today for 14,995. Original list is like 23,500. I looked at it while window shopping on a Sunday a few weeks ago and thought it was rather unique and intriguing. By the price, looks like nobody else does....but what a combo of utility and entertainment on 4 wheels.
Rob
Cost us $650 to fix it and dumped it for $3000 on the first car lot that would take the darn thing. NEVER AGAIN!!!!!
Oh and this so called friend, he fled the state and I can't sue him........GRRRRRRR!!!!
You have to be "liquid" for a bunch of money if you go into the BHPH business ...
Weather and the area has alot to do with it, BHPH dealers up North have a much larger failure rate than the guys south of the Mason/Dixon line, about 60% fail or fall in the first 24 months .. a BHPH customer has a whole different "attitude" when the battery goes dead or the power seats fails or it needs a new exhaust system -- or they can just put it in the ditch on its side, destroy the t-case, then just say "I just don't want it anymore" ... why not, whats it gonna do, screw up their credit.? ooop's thats already done, and they just don't care .. they just go down the street to the next BHPH lot and get another ride ....... ever repo a vehicle at 3am.? .. not a business for the faint of heart.
5% repo rate ..?!? that's gotta be the lowest number on the planet, BMWFS, Chase, GMAC, Ford, Provident, etc has a larger figure than that, I think someone here has a little Dyslexia ...
Terry
2005 Scion tC 2 dr coupe
13,000 miles
4cyl manual trans
silver/black interior
condition basically as new
only options are dealer installed-TRD exhaust, anti-roll bar, strut bar, mats, mud guards, TRD shifter knob
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I am considering trading in 2004 honda civic ex (too small for my teenagers in the back).
Two things- the trade in value the dealership offers ($13600) doesn't seem to take into consideration the side curtain airbags (which were an option on the car) and the after-market kenwood Sirius cd player. I'm not really asking for a higher trade-in than they have offered, but they are insisting that I give them the original stock radio that came with the car (you can get them on e-bay for $25 to $50) I think they are scamming me on the radio bit so that they can replace the factory radio and sell the kenwood. Any ideas? Doesn't pass the smell test. Thanks for any input-
Very doubtful you'll get more for after-market car stereo no matter where you trade it in, IMO.
The reason they balk at the aftermarket stereo, is that no matter how "professionally" installed it may be, most aren't, they're thrown in by someone's cousin bubba who took a semester of auto shop in the 9th grade, and the dealer has, without a doubt, been burned on this many times...and this level of work, and the guaranteed "touching" of all of the factory wiring components can and will void the factory warranty, at least the electrical components.
If the stock stereo is reinstalled, prospective buyers don't have to question and worry whether they have a warranty or not.
For info, NADA doesn't even have an additional value category for the side curtain airbags..
Getting the dern radio from e-bay would cost $50 plus a couple days (week?) in shipping. Plus re-install $100. I think they ought to hush about the radio, take the car and acknowlege that the airbags add value.
As usual, deal is NOW.
THANKS
Maybe Bubba installed the radio - it was professionally installed/guaranteed by local Radio-Shack. Don't you think Honda has access to stock radios for less than $500 if they want to replace it?
Also, side curtain airbags are relatively new - I would presume that's why they are not included in NADA.
Thanks
That's if you bought/had it installed there.
People absolutely BUTCHER and BOTCH installations in stereos, remote starts, alarm systems, fog lights, etc, and a smart dealer is being smart by avoiding taking on a headache. I see cases daily where a consumer had aftermarket electronics installed by some kid at Best Buy who was having a bad day, and it results in 14 visits to the dealer for electrical gremlins before the service manager shuts doiwn their warranty
You're indicating that the dealer could easily get a factory stereo for under $500 - where's that $500 coming from? If you pay it, I don't think they would object.
One last thing...BOOKS don't buy vehicles, people buy vehicles...it doesn't matter what the books say side curtain airbags should be worth, especially since that option is ordered on MOST stock units...it makes it more common, so the only difference is a deduction if you DON'T have them.
The 2004 civic did not come standard with side airbags - none of the dealers in my area even had it and had to order one for me - tried to talk me out of it. Maybe they are a liability - there's a thought. So, it is not an "option on most stock units" - at least in this area of the country. Did I say that BOOKS buy vehicles, or that I read that side airbags should be considered? You brought up NADA - not me. Just seems that forms/NADA/Kelley haven't been updated to include this new technology/option. it was just a remark. Based on fairness and equity - not a common trait in car trades, it seems.
As for installing the stereo - this is not rocket science. There is an adaptor that fits onto the harness - the wiring is from the adaptor to the radio.
However, I take your point on the voiding of the warranty. Don't need the CAPS, though.
Sorry if I offended.
Thanks-
My bad.
I'm trying to give you information on why the dealer would balk at the situation on your car. I'm here to help uninformed people, not debate the fairness of your particular car deal. A hot item like that, in my opinion, should not be traded at all, as you stand to do $2-3k better by selling it privately. As woody said, those things sell in 2 minutes, and that's true.
You referred to a trade-in value of $13,600, and you remarked that it was low, or something to that effect. You obviously took that number from somewhere - I'm explaining that just because a book, or the lady at the credit union, says it's worth "$xxxx", it doesn't make it so. People get their feathers ruffled because they don't get exactly what the book says, and that's a shame that they don't understand the used car market and what those books are really for.
2004 Infiniti FX35 RWD
20,500 miles
silver outside/cream leather inside
tech and premium packages-good rubber (original)
no accidents or paint work done--still looks new
what do you think on trade or private sale--is there a resale market of this type of vehicle?
Here in Syracuse NY a BRAND NEW 05 Corolla CE, 4 dr., auto.,a/c, am/fm/cd is in todays paper for $14,000 plus tax and tag..............
That dealer seems to be "overallowing" on your 04.
Heck...Most folks would rather have a NEW car for $400 more......
Yes/No ?????
...either you need new glasses (lol) or I've had one too many "Crown's" tonight, but I think Catherine is talking about a Civic, not a Corolla...???...???
...anyway, if you think its low, sell it yourself. Throw the details on here for Terry and he'll give you an idea if they are closer or you are closer to reality (ie- miles, options, color and condition inside out, transmission, etc...). Drift is throwing around some decent advice, he's one of the pro's on here and knows what he is talking about....
(ii) private party sales north of $10k aren't sooo easy; but it should be doable within a week or so (better a Civic than an Aerio, that's for sure).
(iii) Catherine "sounds", and I realize this is difficult to interpret from the written word alone, she sounds like she's got a chip on her shoulder. My apologies if I'm misreading it, but what I'm hearing is "I know what it's worth" (I doubt she does. I sure don't.) and "the dealer is giving me the runaround over the radio", when I think that they are just being upfront about the situation. As drift so eloquently explained.
(iv) I forgot who said it, but $2-3k over the trade-in offer seems pretty tough to me... I would rather not try to sell an economy car, even a Civic EX, for that kinda money.
-Mathias
(who wishes, btw, that Terry would come from his water polo retreat so we could get some numbers into the game.)
noticed a 2005 CL65 AMG inside the building...
As dat2 noted, there is, and I highly recommend them.
For Terry - my parents are toying with the idea of consolidating Mom's car and their spare car - I need trade-in and PP values for: Louisville, KY area (both)
2002 Volvo S80 4 dr
2.9 I6 non-turbo, 4 speed auto, FWD
26000 miles
Tan exterior (Moondust) / beige interior
Nice factory 17" wheels, sunroof, leather seats, wood trim, traction control, CD and tape player.
No cold weather package, no stability control.
No hits, no misses, no errors, save for a 2" scratch on the front passenger door - near the ground and hard to see. Clean condition otherwise.
Tires measure 6/32" front and rear.
No idea on brakes. They didn't need attention at the last dealer service. Serviced according to the book.
Owe about $10k.
2004 GMC Canyon SLE 2-door
Regular cab, short bed, 2WD, 3.5 liter I5, 4 speed auto
4000 miles (four thousand)
Standard SLE stuff (remote power locks, mirrors, cruise, tilt, alloy wheels, CD player).
Aftermarket trailer hitch.
Bed has some scratches.
Two tiny dimples on the back of the cab from prior accident. Tailgate was repainted and the rear bumper replaced. They did a good job. Didn't fix the dimples on the cab, the cure would probably be worse than the disease. Otherwise in clean condition - no rock chips or anything.
Tires & brakes are like new. No maintenance called for yet.
No leins.
Thanks!
Dark metallic green, with tan leather interior and tan top (new top).
78,000 miles. Brand new Kumho tires. Car has been well maintained. Interior looks brand new - not even a wrinkle in the leather, and carpet is spotless. 1 small door ding on a rear quarter panel, and a few small chips on the nose.
5 speed, and since it is an M edition, it has every power goody and option possible - even the chrome wheels. Wood shifter and hand brake knob.
What do you think would be a good price for this beauty??? Thanks in advance for your time.
As usual, deal is NOW.
======================
Really..? .. and the dealer is thinkin': "great", another aftermarket radio we have to take out (labor $150ish) and put the factory radio back in (parts $150ish) and we can put that wonderful Kenwood in the same pile as the last HK, Sony, Fosgate, Clarion stuff thats piling up to the ceiling by now -- plus we have a warranty issue ....
19 inch bling blings, $3,500 stereo packages and wavy paint jobs, just don't sell to 97% of the buying market and now, the dealer has an incurred cost to remove it and put factory "stock" stuff back in .... it's kinda like those power makeovers you see on HGTV, those purple walls and green couch's might make your day, but the "vast" amount of home buyers are running back to their car - get it.? ... the airbag thing.? I'm a firm believer in them, but the market as a whole won't pay the extra money, they would rather have a sunroof or a spoiler .. side bags make them sell much *faster*, but "not" for more.
$13,500 is a-l-l the money, and these are a tuff sell down Retail Rd .. what can you ask without making a planter out of it, $15,490 .? - and grab the first $14/$14,9.? new ones can be had for $17,5 .. some vehicles hit their point of saturation when they leave the gate ..............
Terry.
VIN: 4T3ZF13C51U330702 2001 Toyota Sienna LE/XLE 12/14/2004 MI 67,721 Auto Auction REPORTED AT AUTO AUCTION
============================
Hmm, thats a Very good price, considering the dealers are paying the high $10's low low $11's for the clean ones with the same miles - the word being here is "clean" ...... sniff sniff sniff ..
Terry.
Are you just trying to sell the Civic to the Honda dealer or are you trying to trade for another Honda?
I have received some shockingly low trade-in estimates. How much is your estimate and am I wating my time trading when I should be selling this car privately?
Thanks
05 Civic VP, 4dr., auto,air, ps/pb, Cd/am/fm
List$15,075 Minus rebate,and/or spec. finance rate and possibly dealer discount,plus tax and tag.
Both cars are at the local mega dealer.......I am sure they will discount the Civic also. I bought my Caddy and Chevy truck there and got a great deal and service........................