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garyRI

Buying a used car from new car dealership

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garyRI

Strategies/web services for buying new cars are well known. Buying a used car from a new car dealership is there a "standard approach"? Like offer 15% less than asking price?

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Mike da Carpenter

Checking in so I can follow along.  I’ve never bought a used car from a new car dealer.  There has to be some deals out there and ways to get them.

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WI Outdoor Nut

All depends.  I bought my honda pilot that came off lease.  Saw the price online, went there and the sticker price was $2500 more than advertised online.  They made a mistake, and the price online is what they had into the vehicle.  They honored it, but were not happy.  My wife's Toyota Avalon, I think they moved about $800 off asking price. 

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topdog1961

It depends upon the demand for the vehicle. With the rise of internet marketing and shopping, everything is so transparent and competitive, there is little wiggle room for a high demand vehicle like a 4x4 truck, SUV, popular van or sedan. Certainly not 15%. The good news is that new car dealerships usually get first dibs on high quality trade ins because many people aren’t comfortable selling a vehicle, even a great one. The new car dealerships keep the nice used stuff to sell on their lots because they need to protect their reputation, and anything questionable goes to the auction and ends up on some small corner used car lot. That’s where you have to be very wary, and you may get your 15% off, but pay for it later. 

 

With that said, it it’s a niche vehicle without high demand, you may get a dealership to offer deep discounts off list price, especially if it’s been on their lot awhile. They have to churn their inventory and usually won’t let something sit for over 30 days, the spot it’s occupying is to valuable. I typically buy off private sellers but have bought two used vehicles off new car lots in the past 3 years. My Mazda 3 work vehicle and our Miata are niche vehicles because the 3 is a stick shift and few want that in sedans now, and I bought the convertible in early February in Ohio. Both had just been slashed over $3,000 in asking price after sitting on a lot for a month, and I got them to come down an additional $700 and $1000 respectively. Both bought at trade in value, from reputable new car dealers. I can’t say no to that. 

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Natty Bumpo

I like doing that. In the last year we bot a 2016 Honda Pilot and a 2016 GMC Canyon. Both were CPO's, low mileage, and returning leases from those dealerships. Both dealerships had solid reputations. So they had complete service records and better ,longer, warrantees on them. And both classified as "Good Deals" buy CarGurus , KBB, and others.

 

We have had ZERO issues with either vehicle. And that's what I was looking to get. I have ZERO interest in wild goose chases when buying a used vehicle.

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garyRI
7 hours ago, Natty Bumpo said:

And both classified as "Good Deals" buy CarGurus , KBB,

Thanks. Didn't know about this

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River19

Autotempest.com

 

It searches several of the popular auto listing sites and you only have to enter the search criteria once vs. the same thing into many different sites like AutoTRader, CarGurus etc.

 

Saves so much time.....

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Brad Eden

My current truck was a used truck from a new car dealership.  It was a 2 year old lease trade in with less than 20k miles. Basically just broken in and like new in box. Got it for significantly less than a shiny new truck. Still running at 203,000 miles. Most reputable new car dealerships go through traded in or Auction purchased vehicle thoroughly, and put a decent warranty on them if they sell them on their lot. Others that didn't make the grade go to wholesale, auctions etc. I will be looking for a slightly used lease trade in for my next truck as well. My brand new vehicle days ship has sailed. 

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Birdcountry70

Dealerships often make far more profit from selling used cars than new ones.  I always try to find something similar in the area before I talk to them about the one I want then I offer them what I believe is a fair price for the one I'm looking at and I tell them that's the max I'll pay.  I tell them I really don't have a lot of time so please just tell me yes or no. Usually they pull the B.S. about needing to talk to a manager then they come back and counter offer higher which I just asked them not to do. Then I say if that's what you have to get for it that's fine, I understand.  I really want to look at this other one before making a decision anyway. I get up and start to leave, they don't want you to leave.  They make another slightly lower counter offer, I tell them I really believe what I offered originally was fair and I'm not willing to go higher but thanks and head for the door. They say wait a minute and let me talk to my manager again and either take my original fair offer while bitching about how I'm taking food out of their kids mouths or try another round of the counter offer BS or let me walk. I repeat this ridiculous process until I have a new to me truck at a price I can live with.

 

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bigjohnsd

The NADA Buyers guide is a little better than the KBB IMHO, the KBB Algorithm keeps the prices higher longer.

 

Most Car dealers will site the NADA Guide when buying and the KBB when selling.

 

In fact, the $$ on the dealers Used Car deal are made when he/she acquires the vehicle - They try to buy low.  Most dealers try to buy around or below the "MMR" the Manheim Auction Report Value - hey can enter the VIN of the vehicle and the Manheim Auction System Website will show them what like vehicles have sold for at auction over the entire United States for whatever period of time they want to see.  Real-time data not two months old like the books frequently are.

 

Internet research will/should give you a good idea of what the vehicle you have in mind is Retailing for in your area, the KBB "Fair Price" etc - try to be below that#.  

Supply and demand play into the process - if you are trying to buy a specific vehicle and the dealer you are negotiating with has the "Only One" for 250 miles - you are going to pay more, assuming it is a "Hot Item".  

 

A good deal is one where both parties are happy.

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blanked

I dont see dealers haggling like the old days on price.  New or used.  Whatever incentives are availble thats what it is

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E.Young

I've been much happier buying my last three purchases used, from new dealers (Tacoma from a Land Rover dealer, Prius from a Honda dealer, BMW from a BMW dealer). 

 

More wiggle room than new cars, as the margin is usually substantially higher than new cars. I also really appreciate the more professional demeanor of new car dealers than the somewhat shadier/pushier guys at used-only lots. 

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OutlawTorn

With only a couple exceptions, I always buy gently used with around 30-40k miles.  I've had good luck with that and I prefer it to the loss in value of driving a new one off the lot.  I prefer buying them from dealerships as opposed to used car lots - that dealership has a reputation, their sales people are more professional and there's less chance for some shady BS.

 

But, I've noticed a change in the way used cars are priced.  10 years ago, there was always a lot of room to negotiate on a used vehicle but more recently every place I've shopped says the online price is pretty darn close to the bottom dollar they can take and they'll let you walk off the lot over $500 unless you can show them a competitor has a similar vehicle priced lower.

 

My guess is that a lot of this is due to the ease of internet shopping for cars - buyers know if you're overpriced and they won't even come on the lot so dealerships don't even get the chance to negotiate.  This forces them to put their best price out first.  Although, I can't help but wonder if it's a racket where all the regional dealerships have an agreement to say the same thing so they can slowly pump up margins over time as buyers lose their inclination to negotiate.

 

In contrast, one of the only brand new vehicles I ever bought was my 2016 RAM 2500.  I bought it when '17's were starting to appear on the lot and they just wanted it gone - I negotiated a heck of a deal on that truck.

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Lurch

I almost always just figure out what I want, then watch the various ads (autotrader/craigslist/etc) until the right one comes along from an individual. However, with a recently empty nest and the experiencs of selling 3 cars, last week I went the trade-in route and did the only thing worse than going to a dentist - dealing with a car dealer.

 

Same story though, found the one I wanted (only one state away this time), and test drove it, discusses prices, then walked away.  Called them back a few days later (end of the month) telling them we were $X apart, asking if they oculd come down and/or give more for my trade. "Can't budge" I was told, so I told them  "you've got my #. Call me when you want to sell it"

Three weeks later, it still hadn't moved, so called him back, knowing it was still on the lot. It had been a slow month for them, so they were more receptive to talk. Met my oroingal price, plus updates to the electronics/GPS and 36 gal of gas to get me home. Love my truck, but still hate dealers.

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