Thread: Buying a used car from a dealership

Bit of advice please. If buying a used car from one of the bigger dealerships, how much room for manoeuvre would you expect on asking price?

trade in or no trade in makes a difference - same as cash or hire purchase - on say a $20,000 car I would expect at least $1000 of asking price if not more- their markup could be as much as $ $8-10 K be prepared to walk away

Originally Posted by Barry the hunter

I would expect at least $1000 of asking price if not more- their markup could be as much as $ $8-10 K be prepared to walk away

yup recent experience of seeing how much a dealer would give for a car suggests 70-80% markup.....(offered 10k on something that sits on the yard at 17k)
as with anything right now its a buyers market

yes I dont know why it is but every time I do a deal with a car dealer- I always leave feeling I could have got a better deal if I had negotiated harder - but I guess they do it all day - me only once in a while

Originally Posted by Barry the hunter

yes I dont know why it is but every time I do a deal with a car dealer- I always leave feeling I could have got a better deal if I had negotiated harder - but I guess they do it all day - me only once in a while

That last bit is exactly what it’s all about, they have played the game with at least 10 people similar to you, and can quickly work out which ones you are similar to. No matter who you are, they have met your type before and they know which buttons do what.

Dealing in secondhand cars would likely be a skinny business these days. There will always be a deal to be done especially on the last day of the month but make sure to wash your hands and disinfect after the event if thought necessary. Ha ha ha ha

I'm of the other school. I pay ticket price and expect no hassle if issue in future.been burnt once but I'm still happy enough. Our recent purchase was test driven inside yard,I said yip that will do. We paid deposit and drove home,finances sorted days later via telephone( what a hassle that is these days) finance company ask so many questions.

Decide what your absolute maximum amount is, walk into the dealers yard and ask them what they can show you for no more than that amount. Often you will be shown cars in your price bracket but can also get " sir, would you consider this better car for only a few dollars more ..... ?" There may be nothing that takes your fancy or you may think them overpriced and decide to walk away. If you see something that might fill the bill ask what their absolute best cash price is ( presuming you're not trading ), then counter offer a little under that. They will look horrified, shake their heads and say it just can't be done at which point you declare you will go shopping elsewhere, and say thanks and goodbye. If they really want the sale they might plead you to stay afew minutes longer while they ask the boss at which time they might agree to your offer. Anyway, hope that helps. It is a buyers market currently and many dealers hate seeing a potential sale walk away. It is sort of a game of who blinks first and it often pays to hold your nerve. Even if you come away thinking you've done a hell of a deal the dealer probably still made a dollar or two.

I'm looking atm buying new . Have got a appointment today thru another dealer. Thanks to a forum member. But the other place I'm dealing with i won't use names etc no need for that. Told them what I wanted to say ontop my trade ..we were about 4k off then down to 2. They said no that's everything. I walked away happy with my decision.. then get a message last night saying subject to viewing my trade again we will give it another 1k. I always am polite and said much appreciated. But my bottom dollar is where it is. End of the day if your shopping around for a car do some good research in common problems with that model. Hold yourself firm on the price you intend to pay. And if your not in a rush they will ring if things are quiet. You have to be realistic about prices. But it's like buying a house atm things are very quiet.

It always good to ask for what you want. It’s how the market leads.
You know if they don’t budge, that the demand is strong and they don’t have to negotiate. If demand is weak, they will be more willing to drop a price.

Dealers these days often make more on the finance part of the deal than the actual car sale. Depends on what level/price of cars we are taling about. Cash isnt always king. They love trade ins in general, however if your trade isnt great quality they will just wholesale to the 2nd tier dealers and take a small clip. I neotitated a 2nd hand car deal recently from a prominant dealer. They offered me $250 discount and nothing more. The car was a hot item and I knew they had several buyers options. After 2 week neg I walked away with a $4000 discount.
Youve got to be prepared to walk and not come across as too enthusiastic.

In the good old days, on business in Auck, use to drive Greenlane car yards. Here’s a nice Ford Cosworth with $60k on the windscreen. Stopped for a gander, sales guys comes over and asks if I’m interested, I said I have an earlier model and 60k is out of my price range. He said this car has to go today, it’s been too long on the floor plan and we will have to pay interest on it. I’m a bout to swap it for a Beamer, so I have fresh stock. How much is your car worth, I said 27k, he replied if I took your car, how much would you add to it to take this one, I replied 10k, he said I’ll check with the boss, comes back and says, make it 13 and it’s yours, I agreed. Do you want to take it now? ( I had my wife with me and company car) Ah I don’t have 13 k in my pocket, that ok we will finance it interest free for a week, so you can get your money and car together, the boss will come to Tauranga next week and pick your car up.
That’s the way to buy a car.

Never bought 2nd hand vehicle from dealership so I cant help with your question.

But here is my 2 cent if any good, I would stay away from dealer or turner auction.

Find the vehicle car model that you need or want and if you are not in the hurry
I often see decent vehicle going for lot less on trademe, no 8, thornton or mayhem
A couple of week ago, 1 seller sold his car at much less than what I offered him a year ago.

The catch with private sale is money security,
This is what I did in the past, I made $1 payment to seller bank account and make sure they received it at the same time
if all ok, then make the full payment at the same time as I checked the car security (carjam but cheaper thru NZ company govt office)

I have had a few private bike seller not accommodating this method and that tell me something.

Doesn't seem to be much wriggle room in second hand cars. I ended up paying asking price, talked to a few different dealerships about the same make vehicle and was told the same. Apparently room to move on additional items. Roof rack, tow ball etc but not on car price. Did this in October, 1st car I have purchased in 19yrs so may have been rusty.

Just picked up a runabout work hack couple of days back. Had 4995 on it, took it home for $4000. No trade. For main vehicles I'll work them harder. Hit them on the difference, and just when they think they're about to close, I ask for half price sweeteners.... new rubber, floormats, seatcovers, towbars. That sort of thing. They can get them much cheaper than me normally, and if I pay half, I get it cheap, but they've still covered costs.