How negotiable are car dealerships?

2000GTSTANG

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Ive never bought a car from a dealership, only private parties.

I’m looking at newer used Grand Cherokees and found three identical cars at two different dealerships. Mileage is within 2k of each other and one is priced $2k higher than the other two. The higher priced car is 18 miles away and the lower ones are 90 miles away. Higher priced one has been for sale since April and I noticed they dropped $500 off the price yesterday.

Is asking 2-3k or possibly 4K off the asking price within reason? Or just giving them a number with tax included?

I’m considering trading in my 01 Cobra if they’ll give me around $12k trade in. Might be a long shot but we’ll see.
 

jdcobra

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When I buy cars or trade cars in, I associate the two values of each car together to get a number that I’m willing to pay and not go over.

For instance, back in 2013 when I traded my 2012 mustang gt in to get a 2013 SRT superbee they had sitting for a while. I told them that if they could do a deal on both cars where I wasn’t paying more than 45k with ttnl, I’d do the deal.

Now mind you, they were asking 49k plus ttnl on the superbee. So they came back and said ok let’s do it!

Now mind you, this was with great credit with no money down.
 

Grabber

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Really depends to be honest.

Some dealers will work wtih you if you're trading in. However, it wouldn't be "fair" to expect a high trade in value on a car AND also get a deeper discount when buying a used vehicle at the same time.

First, verify why their vehicle is priced higher. Different options, better condition, etc. They could have an inflated price to cover and make room for negotiating, or, they are trying to make a few extra bucks.

I'd go in and talk to them and see what they say.
 

tvspower

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My experience, dealerships only deal in their favour
Money making business......
 

13COBRA

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It depends. I don't have $2k in negotiable markup on any vehicle on the lot. We use the 'turn and burn' theory. More vehicles I sell, more vehicles go through our service department, more customers, more more more...all of which leading to more money. I collect less money on an individual level, but I collect from more people, therefore making more money in the long haul.
 

coposrv

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I don’t think all that much. My dad buys a new truck or van at least once a year. It’s generally all done through the same salesman as well and it’s basically here’s the price. Sometimes he’ll get a phone call or an email saying “mike we have 2 (fill in the blank) sitting on the lot in blue. We need to move them, Here is the price”


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_Snake_

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The days of getting $4k off the sticker price of a used vehicle are pretty much gone. Online advertising makes things really competitive and most dealerships list their “no haggle” price.
 

13COBRA

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We're a small/medium sized store, and we spend almost $500k a year in advertising our vehicles online, we don't have time to advertise vehicles with a lot of markup.
 

Coiled03

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It depends. I don't have $2k in negotiable markup on any vehicle on the lot. We use the 'turn and burn' theory. More vehicles I sell, more vehicles go through our service department, more customers, more more more...all of which leading to more money. I collect less money on an individual level, but I collect from more people, therefore making more money in the long haul.

And you're collecting from more people on the end that has more margin, i.e. parts and service.
 

03cobra#2

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The days of getting $4k off the sticker price of a used vehicle are pretty much gone. Online advertising makes things really competitive and most dealerships list their “no haggle” price.

This. Most dealerships out there use software to competitively price used cars. There is no point in pricing something $2-3k higher then any one else around town because no one will call / come out to look at the car. The dealership I work at works on a 60 day turn. So at around the 60 day mark any vehicle I have on the lot will be priced pretty close to what we might get at auction, and if it don't sell, we auction it and move on.

There are a lot of variables and every dealer is different on their used cars as far as discounts go, and when they want to get a car off the lot. I would say get online, dial in the criteria for what you are looking for and start with the cheapest first. If you don't like the car move on to the next one. Keep in mind that when you are online shopping, don't expect any type of sizable discount off ones internet price.

For the trade in, they will give you what they think it will sell for at the auction generally speaking. That way, if they can't retail it the auction is the safety net. You might get lucky and find a used car manager that may be willing to step up a bit on the value a bit, but don't hold your breath for a high trade in number. My suggestion is to go find a car max, Carvana, maybe KBB ICO to see if you can sell it outright for a good number. Your state may or may not have a tax savings for used cars. It's a lot of info but I hope this helps. Good luck!
 

2000GTSTANG

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Thanks guys. Im heading out to California for a week so Ill start looking around more seriously when I get back.

Unfortunately in Michigan, with car trade ins, they only deduct up to $5k off the price of the vehicle when it comes to figuring out sales tax.
 

IronSnake

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It depends. I don't have $2k in negotiable markup on any vehicle on the lot. We use the 'turn and burn' theory. More vehicles I sell, more vehicles go through our service department, more customers, more more more...all of which leading to more money. I collect less money on an individual level, but I collect from more people, therefore making more money in the long haul.

Call our local dealer for me. Dads worked there for 35 years, can't touch a used car if he wants it for himself for anything less than 2k over cost.

Dude wants a home run on every used car he has on the lot. 5-10k markup is not unheard of... it's why I will never buy a Ford from them again. Tried to trade in the 18' F150 after the whole 5.0 oil consumption issue. I was planning to buy another new GT. Dude wouldn't even consider more than 29k trade in, but then admitted the truck would be put out on the lot for 35-7k and sell quick. Black on Black SCrew w/raptor 35's leveled and blacked out will sell quick around here.
 

13COBRA

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Call our local dealer for me. Dads worked there for 35 years, can't touch a used car if he wants it for himself for anything less than 2k over cost.

Dude wants a home run on every used car he has on the lot. 5-10k markup is not unheard of... it's why I will never buy a Ford from them again. Tried to trade in the 18' F150 after the whole 5.0 oil consumption issue. I was planning to buy another new GT. Dude wouldn't even consider more than 29k trade in, but then admitted the truck would be put out on the lot for 35-7k and sell quick. Black on Black SCrew w/raptor 35's leveled and blacked out will sell quick around here.

What a joke.

Shoot me your VIN and miles and I'll get you a number :)
 

V6&V8SHO

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We're a small/medium sized store, and we spend almost $500k a year in advertising our vehicles online, we don't have time to advertise vehicles with a lot of markup.

I hear some of the website traffic analytics you can get are pretty detailed.
 

STAMPEDE3

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Call our local dealer for me. Dads worked there for 35 years, can't touch a used car if he wants it for himself for anything less than 2k over cost.

Dude wants a home run on every used car he has on the lot. 5-10k markup is not unheard of... it's why I will never buy a Ford from them again. Tried to trade in the 18' F150 after the whole 5.0 oil consumption issue. I was planning to buy another new GT. Dude wouldn't even consider more than 29k trade in, but then admitted the truck would be put out on the lot for 35-7k and sell quick. Black on Black SCrew w/raptor 35's leveled and blacked out will sell quick around here.
That's how they are down here. The offered me 7K for my truck on trade. They would put it on the lot for 14,900 and take the first serious offer of 12K or more.
They make a killing on used down here.
 

FJohnny

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Make them an offer for what you are willing to pay and see if it flies. Worst they can say is 'No', right?
 

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