Who comes up with dealer prices!?

Messages
601
Location
Earth
The dealer will take the first $4k in the door on either by months end but even then they are still not worth it. I'm guessing they decided to retail them due to the low miles thinking they are comparable to the Lexus and Acura turn of the millennium offerings and got bit with unknown at trade problems and repairs which service had to fix,and naturally the cost of which got added to the price along with whatever set amount of profit that must be made per used car per the GM or owner.
 
Messages
362
Location
Pikes Peak region
Originally Posted by hallstevenson
Doesn't matter who comes up with the prices, fact is the majority of people pay those prices so why shouldn't the dealers continue doing this ?
It's a great day for those I'm sure of it - When a customer comes in and can be worked to pay just about the asking price. To say it happens often, I can't know that but it's difficult for me to think the 'average' consumer or shopper isn't a bit discerning these days. Heck toasters and coffee makers are better prices here and there than Store xyz. Shopping price is easier than ever with our phones or computers. How can anyone not know that ? It's beyond me. I guess we can say they pay what they deserve. I recall a sales mgr at a dealership here telling me he had a customer ask him the price of a specific used car on the lot. All had big bold numbers easy to see on the windshield. He quoted him the figure just as it matched the display. The customer acted all offended and said; "I'm not paying the asking or posted price for a car, what the heck - Do you think I'm stupid ?" Mike the sales mgr replied; "No but if your were, I'd didn't want to miss the opportunity." I know there are dealers specializing in One Price or No Haggle but for the most part and historically, I'm a believer in the inflated posted numbers as a rule. There is wiggle room of ample hundreds and even thousands to be negotiated and "built in" that posted price with budget cars below $5000 and anything upward. Trade in's give the dealer some wiggle room too and that allows them to beat you up on your trade value or to compliment you depending on which side of the deal they are blurring the lines. If you buy the mop and glow paint protection, extended warranty and life time oil changes, they can sell the car below invoice and make happy bank. If you hold out for retail value on your trade, you'll be there all day playing the game. Do your home work and be flexible. The logical side of your brain is your friend. Leave emotions at home. grin2
 
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Messages
16,939
Location
NH
I hate car buying. I get that it's a game, but it's one that I play too infrequently to be any good at.
 
Messages
241
Location
Southeastern, PA
Originally Posted by AZjeff
Sort of odd that a mainstream brand dealership would even have those old low priced cars on the lot. They usually get sold off to used car lots or go to auction.
Several mainstream brand dealers around here have cars like this on the lot. They have them right next to the low mileage used cars and call it the "bargain barn" or some other cutesy name. They do it just to be able to have offerings for all budgets. Kind of makes sense.
 

JTK

Messages
13,152
Location
Buffalo, NY
Originally Posted by tcp71
Those would have gone to auction immediately if auctions were open. They're just fishing for the one born every minute as they have no other place to push them.
That's my take on this too. They've likely got little to nothing into these vehicles, so it's not much of an issue for them to sit for awhile. They might have brought a $2000 trade in allowance each, if that, depending on what the buyers where buying.
 
Messages
9,444
Location
MA
Originally Posted by ryster
Originally Posted by AZjeff
Sort of odd that a mainstream brand dealership would even have those old low priced cars on the lot. They usually get sold off to used car lots or go to auction.
Several mainstream brand dealers around here have cars like this on the lot. They have them right next to the low mileage used cars and call it the "bargain barn" or some other cutesy name. They do it just to be able to have offerings for all budgets. Kind of makes sense.
Or that people usually buy middle of the line so if you have some junkers on the lot, you can suggest those and then the customer will decline and buy the middle value car. And maybe someone cheap will really buy it.
 
Messages
4,258
Location
SW Ohio
Originally Posted by Wolf359
Well the same thing happens in real estate. It's awesome when it goes over asking price and there's no contingencies. Quick closing and a nice commission.
Excellent comparison ! Who thinks the OP, if they've ever sold a home, list it for under market value from the start ? grin
 

Nick1994

Thread starter
Messages
12,742
Location
Phoenix, AZ
Originally Posted by hallstevenson
Originally Posted by Wolf359
Well the same thing happens in real estate. It's awesome when it goes over asking price and there's no contingencies. Quick closing and a nice commission.
Excellent comparison ! Who thinks the OP, if they've ever sold a home, list it for under market value from the start ? grin
Listing over value to start is fine, but double or triple? Yikes.
 
Messages
4,258
Location
SW Ohio
Originally Posted by Nick1994
Listing over value to start is fine, but double or triple? Yikes.
As others have said, they do this because plenty of people pay those prices. So many pay those prices that it's worth them marking them that "high" to start with. Do some folks negotiate the price down ? Sure, some do.
 
Messages
6,149
Location
KY
Who cares? No ones holding a gun to your head to buy a car at the listed price- that said, you'd have to hold a gun to my head to pay over $100 for a 2001 Impala OR a 2000 300M. But that's just me...
 
Messages
2,832
Location
DELAWARE
Yeah, there is a lot of those hooptie specials linger on major dealer car lots around me also. As already mentioned, pretty obvious most of them would have gone to auction or sold to the "Tote the Note" no credit lot down the street.
 
Messages
2,580
Location
utah
I assume the dealers very carefully price to balance competition and margins. it seems like some cars are still selling and its not a complete disaster in used cars yet.
 
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