Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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how does that work?
does the car's color affect its value in certain areas?
how does this work in california?
Weird freaky colors also have an impact on value. No matter how much you like Disco Purple or Metallic Copper or Taxi Cab Yellow or Dark Mocha Sandstorm (aka Poo Poo Brown), most normal folks ain't gonna buy a car in those colors. Oddball colors always take a hit come trade in time as cars like that are almost impossible to sell unless its to a very narrow audience.
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except you aren't... because guess what, that stuff is negotiable too... just like tv's, stereos, computers, jewelry, etc.
-Chris
"must ignore reality"
-Chris
Dealerships are not banks, if someone does not want to do their own homework and accept the dealer financing options, then that is there own fault. Had your friend had a commitment for 5.35% in his pocket, your F&I wouldn't hesitate to match it.
When someone is about to make a major purchase, they should make an informed decision. Not just rely on a friend saying I'll take car of you. It sounds like he got a good deal on the car you did your part. He should have done his.
If you want to be more of a friend, tell him to go to the bank and get refinanced.
Steve
WHAT SHOULD I DO?! They both come with 3/36 full warranty and a 7/70 powertrain. Either color is fine for me. It just boils down to why a 2003 is $3,000 more? Is there a reason for me to get the 2003?
Also, is the dealer holdback and dealer doc fees negotiable? Why should I pay $250 or however much they charge for their paperwork?!
Thanks in advance!
If the $3K difference they're showing you is because they are discounting the 2002 and they are NOT discounting the 2003, that doesn't work. The Sebring's a nice car, but it's not a HUmmer H2 - it gets sold for $500 over invoice all day long, everywhere.
Terry.
The 2003 Invoice is 27,000 minus the 1500 rebate is 25,500, so is the 2003 worth an extra $2000?!
That is the question?!
and
"If you plan to drive it 'til the wheels fall off"
Whichever comes first.
(Couldn't resist.)
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So that means, depending on your tax rate, that you are really offering seven thousand dollars more or less than his asking price!!??
Wow!
2WD has a retail around $24,200 and wholesales around $21,500 - 4 wheel drive is $1200 more.
Depending on whether there's a trade, the taxes could be $0-1,500.
The point is you don't just pull a number out of the air to make an offer. The vehicle is worth what it's worth and the dealer can sell it easily near retail book or a little less. You could probably save $1,000 or $1,500 from their price, but not $5-7K - that's much less than they paid for the rig.
Thnx. for the opinions.
so lets say he accepts your offer. Now you have two offers that have been accepted. Does that mean your buying two cars or just threatening to buy a car. What I mean, your making offers and not backing them up. You come in and offer a low price...my reply would be if I accept your offer are your buying the car NOW? if your answer is not now...then I wont take your offer too seriously...the reason? simple..your threatening to buy. Threats dont mean anything. haha
Any number is just a number unless it has meaning and relevance. Quit playing games, do your research and buy a truck at the RIGHT price - good luck.
Bingo! A voice of reason can be so refreshing. Nice post zuelslewis.
I have been reading this forum for a long time, but, until now, have not posted in this subject. I appreciate the thoughts and input from all, and especially thank the professional "car people" here for their comments.
I feel today, however, that I must make a statement. Can any body here really say honestly that a $5,000 off offer is absurd? Haven't you all (sales people?) seen sales at that amount off, or more on used cars? Dealers frequently price their used cars high enough to cover a buyer's negative equity in their trade. They can make a deal, and make the buyer feel good about what they are getting for their trade. If a cash buyer comes in, then the need to cover that negative doesn't exist, hence a possible big discount.
I recently (September) purchased a 2002 used car for $6,000 under what the dealer was "asking." No trade was involved. I didn't go to more than one dealer making offers that were accepted. I test drove the car, decided it was what I wanted, set my offer price based upon research I had done, and started negotiations. Within 45 minutes, without any "grinding" by either party, we settled at $500 over my first offer. By the way, this was the "right price" for this car, at this time.
I realize that this may not be a popular opinion, but I believe that the asking price is immaterial.
Some cars can not be negotiated. Some can. Honda Oddessey at full MSRP is a great buy....Toyota Sienna is not.
Some people toss out a number and get lucky; others do a good bit of research and know what they're talking about; but most just use Kentucky Windage and toss out a price like a hunk of bait and hope a dealer will bite. Not too smart. And it's even less smart when a buyer does this while having no intention of buying TODAY.
My point to the Jetta guy was to make educated offers instead of just pulling a number out of the air - it wastes his time to do that. What if, like I said, he actually offered too much on the '99? Then what?
He'd come back a week later, after one of his buddies booked the rig out, then he'd be pissed!!
The dealer would have an interesting position, as in "Look, dude, you offered us $3,500 more than we had in the ride, did you expect us to say 'No'?"
Offering 5000.00 less than an asking price on a used car will cause your salesperson to lose interest quickly.
jbolit, used cars are priced at roughly what the market values are. If makes no difference what the previous owner may have owed on it.
Just like making a ridiculous offer...if a used car is priced way beyond market values, the potential buyers won't even bother making an offer. Your case was unusual and extreme.
Same thing applies in Real Estate. Worst thing a seller can do is ask a price that is out of line.
With due respect, I think you may have missunderstood my point. What I meant, is that some (SOME...not ALL) dealers price their used cars high enough to be able to discount them enough to cover the buyer's (of that used vehicle) negative equity in their trade-in vehicle...not what the previous owner may have owed on that vehicle.
I don't think you can deny that most used vehicles are priced above "the market" value to allow some negotiating room...rather than at "roughly market value."
Things are different in different parts of the country, I agree, and my experience is based primarily in the South West...So CA, No CA, and AZ. "Someone" I know went to work for a Ford dealer selling cars "awhile" ago..was taught to "add at least $1,500 to the price" coded on the dealer's windshield stock number sticker when quoting prices to potential buyers.
I know that there isn't $5,000 available off every used car..hardly.... Sometimes, however, a dealer WILL sell a used car at a small loss, to get the ability to make a bigger profit on a more desirable used car (to that dealer) that buyer may be trading in. Domestic dealer selling an import to a buyer trading in a domestic, as an example.
And last, I agree that dealers are in business to make money, and the salespeople to earn a living...I would not deny both of them a profit on a purchase. I just object to extremely overpriced "asking prices."
Trying to get a vehicle for $6-7K less than retail book ain't gonna' happen.
I do agree that some wiggle room is added to the sticker. No matter how low the price is the buyer will always want to haggle. Nature of the business.
Once, we made a major mistake and red tagged a used car for almost 2000.00 less than we had in it. The lot guy got the tags mixed up.
A customer pounced on the car but made the mistake of offering less than the tag price that we agreed to honor. Even though he said he had done all of his "research" and knew it was an exceptional buy, he still wanted to grind me.
I told him that we would eat the error but if he left, I would correct the mistake and the deal would be off. He gave me a wry grin and he left!
Two hours later he returned. We had corrected the error and refused to sell him the car.
Another salesperson sold it later that day for the correct sale price.
There has to be wiggle room in any price - with some folks, they jusy have to beat you up. It's the way their old man taught them, I usually found.
I have a question for the group. If you are booking your car out (KBB, Edmunds or where ever) and you get to the part about the cars' condition...is this a relative thing, or is 'excellent condition' always mean showroom new?
Example: Someone wants to sell their MY 2000 XYZ. It runs great, has low miles, regular maintenance and is always garaged. But it has a small paint chip here or there from regular driving. Is this car 'excellent' or 'good'??
Thanks for the time,
Scott
People tend to believe what they want to believe. If "The Internet" says their car is worth 8500.00, then that becomes gospel.
Nevermind, it needs tires, has body damage and the interior looks like the car was used as a rolling cafeteria.
And, I guess I can't blame these people. The tires that look "just fine" to them are down to 3/32nds of tread. The deep scratches in the paint that "can be touched up" will cost us 500.00 to fix properly.
And they may have a car that is soft in the marketplace. I cringe whenever I see a Chrysler Mini-Van pull into the lot. The dealers and wholesalers simply don't want these. People are afraid of them and the market is flooded. I get bids of 3000.00 below book from a wholesaler who really doesn't even want it for that price.
The market can shift too...almost instantly.
This is one area where the marketplace frustrates the car dealer. How do you tell some guy who has lovingly maintained his 1993 Hyundai Elantra that his car is worth only "fair" book?
Also, most rides over 80,000 and everything over 100,000 miles has no place at a new car dealer's used car lot. Things break and they don't want to put their in-house 30 day warranty on something that's a guaranteed problem. Additionally, it's next to impossible to get an extended warranty on anything over 80,000 miles.
But stuff like my 141K 91 Accord with rear end damage, clicking CV's, and no AC, not matter how shiny the paint, was going to spend any time on that lot!!
We had both just to prove that Hondas last forever with proper care (like most cars).