Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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But anyway if you don't, it can be a Big climb .. It takes big cash, huge patience and more hours than you thought was ever possible.
Even the minority/female deal is about over, and certainly not worth all that time for almost a pitence.
Just getting a license, getting the property, then getting the city, county and state to approve all that is more fun than you can imagine ..l.o.l.. Now all you got to do is, get all the proper insurance and have the inventory and drivers, customers, building and friends covered ..
And if all this goes just super (that will be a first) .. then what about the overhead and knowing what, where and how to promote your inventory. I have friends that have tried it with big cash, but the biggest problem now, is knowing the market .. do you buy a vehicle cuz' it's cheap, or because the market has turned and you just made another $3,000 mistake, and unless you know what you are doing you can see $50/$80/$120,000 dissapere almost overnight.
There is Many variables and unless you have a huge amount of experience and can go "liquid" for at Least $2/$300,000 on a phone call at any given time .. then unfortunaltly you will go nowhere in a big fat hurry... I don't mean to sound negative, but 15/20 years ago, you could go into this with on a shoe string, no biggie. Nowadays, it's a Whole different deal.
Even the guy that NY was talking about will go south, when all those the complaints hit the fan, then his little deal will evaporate on the back of a tow truck.
I hope this helps ...
Terry.
they ask questions if the car has problems and how the dealer was?
my car does have problems(interior rattles paint scratches easily)
and i was a little upset that my dealer said i could pick between 2 cars but when i told him i wanted the silver one he told me it was sold already so it made me a little upset(i paid retail bought extended warranty etc..)
so what should i do, because as a whole they were pretty good but im not going to say anything to bolster the undeserved toyota image
Terry.
Am I missing something here, or do the free hotdogs and balloons for the kids bring out the people who will pay more for a used car?
The explorer has 61,000 miles, it is 4WD, black, and at least good condition, there is a scrape on the back bumper to keep it from being excellent.
(I don't know what all is standard on the Limited edition, it has sunroof/CD changer/leather/heated mirrors)
The passport is a well loved 2wd, navy, in fair-good condition with 89,000 mi.
I live in northern WV, would be looking in my area and Pittsburgh ideally...but if needed could also look in Asheville, Chattanooga, or Atlanta.
Trade side, the Limited should do around that $10ish figure and the Passport should be around that $5ish range if it's a EX ...
Maybe this helps ...
Terry.
Terry.
Car_man
Host
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Ed
Oh, but you have to understand, that's just part of the "cost of doing business".
;^)
: )
Mackabee
Who actually gets to pay invoice for a new car? Isn't it always invoice PLUS profit? And anyways, no matter how much the dealers protest, it's ultimately they collectively who control the final price of the cars they sell. I haven't seen many (if any) dealers going under around here lately. On the contrary, not a week goes by that I don't see want ads posted by the local dealerships looking to hire some additional service and sales help. Quite a contrast to the number of other businesses handing out pink slips and filing for Chapter 11 protection.
Things are tough all over. So, don't begrudge consumers using every bit of information at their disposal to save what's left of thier dwindling cash reserves and I won't begrudge having to give you a reasonable profit on the car your brokering for me.
I don't want my customers to ever even think about our costs of doing business. These are, nevertheless a MAJOR factor.
And...sorry, but mismanaged car dealerships fail every day.
Just like any other store, it costs to turn on the lights, pay for insurance, employee health car, furniture, etc.
These are all costs that have to be absorbed. Just like we can't buy a refrigerator directly from GE we have to go to a retail store.
Also dealers don't control the price of the cars, buyers do. Just because you the informed shopper won't pay that price for the car, it doesn't mean five other people are right behind you thinking they got a great deal. I had a friend who once bought an explorer financed at 72 months for 18%.
Believe, if no one going to pay dealer what he wants he will have to lower the price. Supply and demand economics is the cornerstone of American capitalism.
Don't get mad at the dealer if they won't sell to you for your price, he doesn't have to. I just means that in all likelhood someone is coming in behind you who is willing to pay more.
Its similar to shopping for used cars, I just use the probable trade-in amount as a reference then add in any reconditioning costs, and account for demand to arrive at my target price. Then of course, I look at the checkbook to see if I can afford it.
I don't worry myself about "fair profit" for the dealer, that's his or her problem to see that they get what they need out of the deal. I just go with what I think is a good value for the car to me.
Example: A local used car dealer has a 2001 Mazda MP3. If I decide I am willing to pay only $12,000 for it, but the dealer determines that they can't turn a profit on that amount then most likely there will be no deal.
It always comes down to"thats what I feel its worth"
Well I "feel" a cup of coffee should cost a nickel.
I "feel" that a Sony Big Screen TV should cost $500.
Neither feeling has any basis in reality.
When your offer to a dealer is silly don't get offended when they laugh at you.
BTW dealers aren't hiring additional help, they are replacing the people that figured out they couldn't make a living selling cars
Then please explain the houses that flood the floor with salespeople.
I assume every deal I've ever made for a car provided "reasonable" profit. Why shouldn't I? The dealers agreed to them and they're all still around. Of course, that doesn't mean they wouldn't have found it more reasonable if I'd just walked in and said "gimmme the one in red for whatever it says on that window sticker you got there".
The fact that the seller ultimately controls the price in almost ANY seller/buyer transaction, is pretty much a truism. A consumer can wrangle and argue and plead all they want, but it's the seller who maintains ownership of the object of the consumers desire until they say "sold".
BTW, I agree that no one (buyer or seller) should get mad because their price isn't met. It's strictly business after all. Life is too short.
However, I can't believe that "it always" boils down to simply a feeling about a cars worth. I would think that most people have a more realistic approach then that.
Some cars are worth much less than "book" values to a dealer and with some other cars, it's possible the dealer paid over book to get the trade.
Reconditioning costs are unpredictable. I have seen us have to spend 2000.00 or more.
from my understanding some of you guys are used car dealers that buy wholesale.
i'd like some price info for a '92 BMW 325is with the usual options and a '93 BMW 318is also with the usual options(leather , etc etc) both stickshift though.
and also if you ever bought something like that.. how were they? any problems?
AND also if you guys know some example of these cars and how much they went for at the auctions you shop at.
thank you
Lawrence
If I were to buy a used car, I would probably only buy from my local Honda salesman from whom I've bought 2 new Hondas in the last couple of years. I think when buying a used car, having a reputable salesman is extremely important. To arrive at an offer for a used car it ultimately boils down to how much I am willing to pay for it. To use my MP3 example, if I wanted to buy the car, I would be willing to pay about $12,000 to $12,500 assuming it is in good condition, etc. By doing a bit of research on Protegeclub.com and perhaps a bit of input from Terry and other sources I trust, my guess is that the dealer probably has enough into this car that my offer would be rejected.
Without the dealer honestly telling me how much he has in the car it would be impossible to know for sure, but I do know for sure how much I would pay for the MP3.
But, you have to provide more information or they will "send you to your room"!
They need., mileage, color, tire condition, paint condition (scratches, dings or damage), sunroof?, four door/two door?, etc,..... I'm sure you get the picture. The more accurate information will give, the more accurate the estimate.
Good luck, M.
Why would you care what a dealer has invested in a used car?
I mean, it's either a good value to you or it's not!
You have "books" and guides to go by when buying your MP3, you can ask in these forums etc...
With this in mind, what difference does it make what a dealer has invested in the car?
I just don't understand...?
Sergey I do hope you answer that question.
I'll ask you another...you find a 100.00 bill blowing across a parking lot. Nobody around.
Would you sell it to me for 50.00? I mean, why not? You got it for nothing!
But wait...the VALUE is still 100.00!
Same thing!
Pontaic Vibe $18,100 price
Which would be better...
1500 rebate leaving 16600 on Home equity loan
Rate currently 4.75 but I would average at 5.75
over the 5 years of the loan...
Tax deductible 28%
VS
Current 0% for 60 months with Pontiac !
Any suggestions ????
As far as dealerships having different prices, do you really have enough knowledge to determine these dealerships actual selling prices? Now, different dealerships may have different policies regarding "asking" prices but if they are in the same market their "selling" prices are likely very similar.
Example, I saw an ES300 with no sunroof and cloth interior parked next to one with sunroof and leather. Did not see if they are the same model year and have similiar miles or not. BUT the asking price for the "stripped" ES300 was around 2k less than the fully equipped one.
Well, the other nine will be bid on and bought by other dealers for less money.
They may reek of cigarette smoke or dog odor. They may have had previous body damage or be a lousy color or lack the equipment people demand in that model.
And...they will probably be advertised for less money.
Which one would you want to buy?
$18,100 - $1,500 rebate = $16,600 to finance at 5.75% for 60 months. Your payment works out to be appx $319/month x 60 months = $19,140 total payout. Interest cost is $19,140 - $16,600 = $2,540 which at a 28% tax benefit ($711) leaves you with a net interest cost of $1,829. Total payout is $16,600 + $1,829 for a total of $18,429.
If you finance the entire amount of $18,100 (which they probably won't let you do - more like 80%), your payment over 60 months is appx $302 per month. Total payout $18,100.
To me it points toward using the 0% financing and to leave your house out of the equation. You can't guarantee the equity interest rate and would you want to lose your house over a car if it came to that.
Disclaimer - I'm not a financial planner and your mileage may vary.
Good Luck.
No interest is better....
Always... especially since only the interest on the loan is tax deductable... of course... a 401k loan would be better than both... =o)
Bring in new motivated, green salespeople, blow out the ones that can't make it
Always more salespeople than the traffic can support hence the poor tactics to get you to buy a car.
Volvo usually throws in travel incentives and they pay for some hotel stay in Gothenburg near the factory. You can then drive it around Europe and drop it off for shipment home.
The only drawbacks are that you must pay for the car upfront and waiting about 6-8 weeks after dropping it off at the end of your trip. I was poking around a local dealer recently and saw 2 XC70's with euro style plates on them and stickers indicating they were Euro Delivery vehicles.
Follow this link: http://new.volvocars.com/overseas/
Good Luck
Once he got there he was put in a room with several drop dead gorgeous Swedish Blonde's.Said they tried to sell him all sorts of useless stuff (extended warranties etc).He bought everyone of them. Heck said he offered to pay more than what they wanted for the stuff.Subtle huh!
I've been dreaming about that my entire life.
I'm going out and buying a new Saab today!!!!
Thanks,
bjasmund