How much will a New Car Dealer go down on used car price? What percentage?
Used Car Bargaining
- Thread starter borgward
- Start date
That seems to be a thing of the past ever since they made us wear masks.
Sample of one, for what its worth:
January I bought a 2013 Xterra 4x4 traded in at a Land Rover Dealer. Listed at $10,995 I paid $9750 after a little negotiation. So lets call that 10-11%?
Some factors:
1)It was a hoity Toity land rover dealer that wanted that junk off their lot?
2) They just got it in - not even detailed so was an easy sale maybe?
3) It was still at the highest end of KBB fair market. It was pretty much mint and exceedingly well maintained so I was happy to pay.
I think it really matters what and where. Your going to pay way more for a desirable car than not, and you will pay more for a Honda at a Honda dealer than a Honda at a Chevy dealer.
January I bought a 2013 Xterra 4x4 traded in at a Land Rover Dealer. Listed at $10,995 I paid $9750 after a little negotiation. So lets call that 10-11%?
Some factors:
1)It was a hoity Toity land rover dealer that wanted that junk off their lot?
2) They just got it in - not even detailed so was an easy sale maybe?
3) It was still at the highest end of KBB fair market. It was pretty much mint and exceedingly well maintained so I was happy to pay.
I think it really matters what and where. Your going to pay way more for a desirable car than not, and you will pay more for a Honda at a Honda dealer than a Honda at a Chevy dealer.
AZjeff
$50 Site Donor 2023
More info on 2013 Xterra needed. NIce pick up!
Depends on the specific vehicle and how good a negotiator you are. If you are trying to buy a Toyota or Honda, don't expect a discount.
Its technically daughters. I just paid for it
2013 S 4x4, midnight armor color (dark gray). 2 previous owners, Florida and SC. 150K miles when I got it. All fluids were perfectly clean when dumped. 5K miles since purchase, no issues.
I depends how much they have in it and how long it has sat.
In my experience, much also depends upon traffic in the dealership.
I once got an excellent deal on a car on the 6th of the month. That was because the one I bought was the first car (new or used) that they had sold all month.
I also have found that the end of month can also be motivational, especially when they are close to hitting either an internal or an external sales target.
The goal is always to hit them when they are hungry.
In my experience, much also depends upon traffic in the dealership.
I once got an excellent deal on a car on the 6th of the month. That was because the one I bought was the first car (new or used) that they had sold all month.
I also have found that the end of month can also be motivational, especially when they are close to hitting either an internal or an external sales target.
The goal is always to hit them when they are hungry.
So what's the best anybody talked them down fro advertised price?
Depends. How much are you willing to take a pay cut instead of a layoff? Nobody will know and it is all about demand and supply, and how well the business run, and how flexible in the choices do the customers have.
I have gotten $5k off MSRP before on new car. I have gotten a deal real good and never even try to bargain before, and I have gotten anywhere between 0% to 20% on a desperate sale, to a "they want to do half off but I found problem I would run away no matter what price".
Zero. I have only seen ad price low enough to post ad, that they are likely the bottom already. I have never successfully been able to talk down on an Autotrader ad or Newspaper ad from a major dealer that post them ever. If I call they are typically a very good price to begin with already and it is a yes or no whether they already sold it or not deal.
On a used vehicle, $2500 on a $14,000 vehicle. This was almost 2 years, and it was the last day of the month.
When negotiating, pull out your phone and plug all the information into CarMax and Carvana and show them how much the vehicle is worth wholesale, as in how much they would offer for the vehicle, and use that as a bargaining point.
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The best negotiating is done knowing that you can walk away and don't have to have that specific vehicle. Most used car lots have at least a two grand markup unless it's been on the lot a while. Give them the price you think it's worth and let them decide. If they don't bite then move on to the next one.
I suspect that on average, dealers leave a couple thousand on average for what it will cost to get the car prepped for sale to detail and fix some hiddent things that the buyers neglected to disclose. Selling one before they got it prepped means they have room to get the needed gross profit.
They make a lot of money on used, so I'd be willing to guess they have a lot of leeway on pricing. That said they're going to sell it for as much as they can possibly get, so you'll always be up against that number.
It was 6 years ago but I got almost $1k off the advertised price on my Accord. That price was already lower than others I had found in a reasonable distance and vehicle mileage. Why? I presume not many were looking at a 3-4 year old base model, manual transmission, cloth seat Accord at a Mercedes dealer in a well to do area. It was on their lot for over 2 months.
You need to give out some more information because it depends.
Define advertised price - a hot sale price or just what its listed for on Carfax?
Is it a 3 year old Camry in which there are 1000 to choose from about the same, or something old and cheaper in really good condition.
Desireable - used Rav4 - commonly wanted by young people, or not so much - used Buick normally wanted by older people that have lots of money and lots of time to wait for the next one. Maybe I am really a Buick guy? Hmmm.
If it's a high volume mainstream vehicle it seems like they tend to be fairly competitively priced given that most people shop online and it's so easy to compare prices.
I have noticed usually dealers online price will be a few thousand lower than the price on the paper on the actual vehicle. I think they know that if they overprice the car online nobody will be interested but people just stopping by without having checked it online first might not be savvy enough to check that?
It seems like dealer addons and packages are where they try to get you since they can't really charge too much for their car.
Now there are exceptions... like if it's an undesirable car, maybe weird options or weird color, that's been on their lot for a while. But again, the online price is probably where they'll be at... if you can get it without any extra fees you probably did OK.
Of course you can always do better if you have the time and energy for it. But if you see a dozen of the same used car all the same price across every dealer in your area you probably aren't going to get $5K off a $20K car, you know?
I have noticed usually dealers online price will be a few thousand lower than the price on the paper on the actual vehicle. I think they know that if they overprice the car online nobody will be interested but people just stopping by without having checked it online first might not be savvy enough to check that?
It seems like dealer addons and packages are where they try to get you since they can't really charge too much for their car.
Now there are exceptions... like if it's an undesirable car, maybe weird options or weird color, that's been on their lot for a while. But again, the online price is probably where they'll be at... if you can get it without any extra fees you probably did OK.
Of course you can always do better if you have the time and energy for it. But if you see a dozen of the same used car all the same price across every dealer in your area you probably aren't going to get $5K off a $20K car, you know?
Depends on the demand of the specific vehicle mostly. No way to get the dealer to budge on our certified used Sienna Hybrid when we purchased it. Vehicle is too in demand. Many new ones get pre purchased before they even hit the lot.
The biggest thing to focus on is avoiding a dealership that will add $1k to $2k in vehicle prep fees such as fabric and paint treatments, GPS trackers and other garbage. Cheap new cars are really loaded up on this junk. Used cars have this, sometimes in the fine print. I was losing my mind trying to find a cheap vehicle for my Son.
I am seeing $2500 wholesale for 2013 Fiesta and new car dealers asking 6, 7, 8000 for similar used Fiesta w/about 100,000 miles.
