If they had said current auction prices are 29k to justify their 32k ask I would have felt much better paying the extra money...
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It's makes the customers car feel cheap and the dealers car feel expensive.
I was looking at an used S4. The gsm came back quitting auction prices on mine and then current retail for sale. The gap was too big and I did not buy.
If he had said we 26 in it low as we can go is 28 I would have purchased. Instead they kept the 32k ask.
Nothing wrong with it at all. How they chose to go after a sale.
How does one get more for their car than its worth? lol
Good post!
Thanks.
this is great information.
Even today, however, this all boils down to WHEN you are looking to buy/trade in (as a consumer, wait till quarter end!) and how excited you are about your new purchase.
People tend to make worse decisions (me included) when they really, really want something.
Oddly enough, lots of human psychology at play here.
Thats kind of sweeping generalization of the entire industry though isnt it?
Some of the trends certainly differ depending on what part of the country you are in and who actually owns, or how large the franchise is. It sounds like the Co you work for understands big business better than the dealers ive dealt with.
My industry operates the same as you describe (trucking) just as any large business looking to increase value to its share holders.
A business that operates at a 90 OR on a $2b top line revenue still makes less money than one that operates at a 98 OR with $20b top line.
Just a few weeks ago, I emailed some local dealers about buying my C6Z outright (No trade in as I am not buying a new car) & the best offer was $32k. I sold the car last week for $35k
Of course, it wouldn't be worth it for a dealer to buy at 34k then sell at 35k lol. Maybe someone desperate to sell takes $32k is the ideaThat's not too terribly bad.
The dealer probably expected to sell it for $35k or so. It wouldn't be worth their time to buy it from you for $34k, then sell it for $35k.
The $1k profit would get eaten up by their salesman's cut, salesmanager's cut, etc. It would've been a loser for the store in general.
Of course, it wouldn't be worth it for a dealer to buy at 34k then sell at 35k lol. Maybe someone desperate to sell takes $32k is the idea
It's a sweeping generalization that will prove to be true.
The market on the C6 taked over the last couple months. Just last summer I was offered $40k for it multiple times. Unless someone really really wants it gone, why would they take $32k when you can get a few grand more with common sense & patience? I was not desperate to sell it.You keep bringing this car up. At the end of the day, it's a 10 year old Corvette. It's not (wasn't) worth what you think (thought) it was. $32k is more than fair for that car, unless of course you can't sell it for that because you owe more. The dealer has to make money too, they aren't a charity. $32k is the price that it takes for them to make some money and gets you a car sold. What's the problem?
First, thanks for another inside look at the industry. Great thread.
Second, I have to agree with you on this. I bought a used car in Tampa last year and heard pretty much everything you said when I was negotiating on price. I don't think I believed them at the time, but hey, I was negotiating. You know? Lol
Thanks again. I completely get it now.
The market on the C6 tanked over the last couple months. Just last summer I was offered $40k for it multiple times. Unless someone really really wants it gone, why would they take $32k when you can get a few grand more with common sense & patience? I was not desperate to sell it.
So do you not have hold back on used? Our store puts 1k on every trade then the 800 recon. So even when they sell to an employee for 500 over "cost", they make 1500. Or in my case they tell you they took a 300 loss, (cause they didn't know i saw the back screen), when really they made 700.