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Smart Shopper Got a Quick Question for a Car Dealer?
2394 messages, Last post on Nov 03, 2009 at 11:03 AM
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Replying to: jipster (Jun 12, 2009 12:49 pm) |
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I fully own a car with a trade-in value of about $14k. I want to buy a car for about $10-$11k. How does this work....will I sit down, make the deal, and the dealer will give me a check for $3K? How uncommon is this? Any tips on how I should do this would be appreciated.
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Replying to: javacup (Jun 15, 2009 6:16 am) It's not very common but it happens once in a while. My most memorable was a customer who traded an 03 Mercedes Benz SL55 AMG for a loaded minivan. He got the minivan and we cut him a check back for about $50k. |
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I'm seeing a lot of 2009 cars being sold on the internet as USED when they have very low milage, usually no more than a few hundred, some as little as 10 (no typo, a used car with 10 miles). Quite a few have a Carfax which says previous rental some even say they were purchased from out of business dealers. So what's the story on these cars? I did hear that after June 9th Chrysler dealers who had lost their franchise had to sell their stock as USED but would another dealer who bought up the closed store's NEW stock have to do that too? As for the rental companies, why would they sell off brand new vehicles? Could it be that with the slow economy the rental companies are dumping cars that they haven't been able to rent? Finally, if I wanted to buy one of these cars is there anything I should be wary of? As it stands, the price on some of these units is low enough that I could fly 1000 miles to their location and save enough to pay for the trip, shipping back home and having a vacation .
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Replying to: oldfarmer50 (Jun 21, 2009 10:19 am) |
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About a year ago I bought a new car for my wife. During negotiations the salesman's first offer was around $31K for the new car and $1K for the trade. After that we only discussed the net price instead of splitting it between what we would pay for the new and what they would give us for trade. The final amount ended up being somewhere around $26.5K. When I was looking at the paperwork, I saw that they had broken the costs out as $28K for the new car and $1.5 for the trade. At the time Edmunds and KBB listed our trade at around $3.5K. I know the actual value was probably a little less due to some work that it needed, but I doubt it would have been worth much less than $2.5K. Does anyone know how the dealership would have come up with the cost breakdown that they showed on the sales receipt? Also, does this breakdown impact the salesman's commission?
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Replying to: newcarbuyer12 (Jul 02, 2009 5:34 am) Dealerships can shuffle numbers around as well. If they got more for your trade in from a wholesaler than the amount they showed you on paper, then the extra money will go into the deal as gross profit. If we guess and say their cost on the new car was $28k, and a wholesale value of your car was $3k, then they would break even at $25k, and make a profit on anything over that. So if you paid a difference of $26.5 then they made $1.5k on the deal. The salesperson will get paid on the gross profit of the deal, in this case we're assuming profit would be $1.5k. Typically a salesperson's commission would be 20%-30% of the gross profit. They could have lost money on your deal for all we know  so in that case the salesman will get paid a flat most likely of $150.
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Replying to: boomchek (Jul 02, 2009 9:55 am) That's what I was thinking, but then I started to wonder if the purchase and sales was giving a little insight into actual costs. I'd been wondering if I had over estimated the value of my trade, which wouldn't surprise me too much. However if the $1.5K for the trade is what the dealer thought it was really worth, then I got a much better than expected deal on the new car.  Unfortunately I highly doubt my negotiation skills are good enough to pull that off. 
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Replying to: newcarbuyer12 (Jul 02, 2009 12:11 pm) When negotiating, yes, that's all that matters. To the dealer though it does matter eventually where the money goes, but that's behind the scenes stuff that would be looked at after. |
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I'm considering buying a car from a dealer out of state. They tell me they're about to sell and ship the car to a different dealer if I don't beat the offer from this other dealer. Sounds fine. My question is this. When dealer A sells and ships to dealer B, who pays the freight? Do I have any bargaining room here if I agree to pay freight if I purchase the car?
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