Making an offer to used car lot with out being rude, advice needed.

[slojas]

Looking at buying a truck but don't want to make myself look like a "grinder", I'm an honest person and believe a saleman has a right to a profit but within sane limits.

My last purchase of the family sedan went OK, but I could have gotten a better deal, probably paid 2k more than I should have, the salesman was a decent fellow though.

This will be a second vehicle to do a little commuting, light hauling and summer trips to the lake.
financing is directly though the bank.

Looking at 2010 colorado 4x4, 4cyl, ext cab with 30000k at a reputable dealership.
Asking price is 17994.00
Max budget is $18000 after taxes.
The offer I was thinking of was-
$15500 - Truck
$900 - Dealer fee consideration
$16400 - subtotal
+ 10% tax
=$18040.00 - total due

VMR Canadian values for this model and Km's
Wholesale - $16325
Retail - $18875

I have a Few more chevs and fords in the list but the price and km's is about the same, toyota and nissan is exempt because of insane used prices here exceeding 25k for high milage no warranty units.


Is this fair, what are your methods?.

 

[atila]

Just go, test drive the car and at the end tell them you can offer 18000 all in.
Be firm!
If they dont agree just move on but leave them your contact info.
I am pretty sure your offer will be accepted on the spot.

 

[slojas]

Check out truck, test drive, if OK, 18k all in, Firm.
If he's says no, just leave contact info and let him know I'm moving on to the next dealer on the list ( I have a list prepared that I can show, with the local competitors offerings and prices)

Repeat process at next dealer.

Sounds good to me.

 

[dirfm]

Not sure if it would work in Canada, but I have used an internet style of buying a zed m 4 here in the states. I found all of the internet sales departments within approximately 75 miles and contacted each one (through email) letting them know that I was a serious buyer and will be purchasing within 5 days. I then also tell them that I would like to accept any and all offers on the specific model that I am looking for. I did get a lot of phone calls, but did let them know that the offer needed to be in email form and that I was giving the other dealers a chance to respond.

I got a great deal on the car. I did not go with the least expensive, but the second one due to the care they took in responded to me and their excellent customer service.

Looks like you are offering a fair price.

 

[albertbert]

whoops that wont work in this situation

 

[drac]

I just went through the same thing as you except I don't mind negotiating a price. If the dealership is not going to make money they won't let it go. We had a bit more room to work with as it was a new car. I was dealing with about 5 dealerships before I settled. I did phone all the sales people to tell them I bought from elsewhere. So I kept a bit of manners. Money is tight so try as hard as you can to save a buck. They will be trying harder to get one. Good luck
Drac

 

[slojas]

Got a call from one of the salesmen at the dealership where I bought the family sedan informing me that a truck meeting my requirments has just been traded in (let them know before that I was looking for a late model small ext cab truck).
I'll be heading over in the morning to check it out, according to my contact it is a 2010 Ranger ext cab sport with 70000km's, single owner traded it in for full size silverado, lives on a farm nearby the city, price was not discussed.

My google-fu shows local dealers trying to get 18000 to 19995 for 2010 Ranger 4x4 extended cabs under 100K
I am also noticing that the smart shoppers don't tend to pay more than 15000 for the 4x4 and 13000 for the 4x2
So if it checks out I figure 12000 offer if it's a 2 wheel drive, and 13500 if its a 4x4.

Canadian Black book shows a trade in range of 11000 to 13000 for the 4x4 and 9000 to 11000 for a 4x2, so room for profit is definitely considered.

I'd rather have a Colorado but the missus likes the styling of the Rangers more and she is bearing the credit load at a less then ideal rate of 14.9% (found out this morn when she applied for the credit), I am already leveraged with a loan on our existing car with about 10k left so it looks like I'll need to keep under $16000/60 months in respect to the interest rate.

Just to be clear, I am not pressuring my wife to buy me a truck, this was her Idea and she wants the truck I am just trying to offer all the help and support I can.

Working all night and car shopping all day sucks..*yawn*

 

[jjcordone]

Ive been in sales for years, computers, not cars, but I'll bet its about the same for a good car salesman too.
I'm always after a long term relationship with my clients and I see myself as representing my client to my management as well as representing my company to the client. At the end of the day it has to make business sense when the sales guy goes to his management for approval.The better you arm him the more likely he'll win.
I'll bet you'll find he's on your side, especially if you state your case like this.
I suggest you share the numbers you've written above with the salesman and tell him your rational and need for the firm offer your making. Throw in some customer satisfaction statements about how much you like the dealership etc...
I hate it when people just dig in with some dollar figure and nothing to explain why. My long term clients that trust me always share as much information as possible and I've never had my management say no to a logical argument that makes business sense. I would imagine the cars are costing them money as they sit on the lot, so they may be inspired to keep the inventory moving through their lot.
IMHO, be open, honest and direct in asking for what you need and why you need it.
I'll bet you get it. If your salesperson doesn't react well to this approach, move along your dealing with someone who is after a quick sale and not a long term relationship.

 

[Racehorse]

If the dealership is not going to make money they won't let it go.

Smart, simple, and to the point. You just have to figure out how much they NEED to make (which isn't as much as you think it is).

There's so much back-and-forth and it's time consuming. I hate spending the whole day at a dealership. Research, figure out your down payment, offer a fair and reasonable price so that your saleman and dealership can make a few bucks (so they can pay their mortgage, too, just like us) and call it a day.

I hate it when they start playing games with me like "I just made a call, somebody in Nebraska wants your exact truck and so here's the trade in we're offering, but he might find it elsewhere tomorrow...." and you know it's an outright lie, because believe me, nobody in nebraska is waiting for my 5 year old 2 wheel drive truck.

 

[jjcordone]

Smart, simple, and to the point. You just have to figure out how much they NEED to make (which isn't as much as you think it is).

There's so much back-and-forth and it's time consuming. I hate spending the whole day at a dealership. Research, figure out your down payment, offer a fair and reasonable price so that your saleman and dealership can make a few bucks (so they can pay their mortgage, too, just like us) and call it a day.

I hate it when they start playing games with me like "I just made a call, somebody in Nebraska wants your exact truck and so here's the trade in we're offering, but he might find it elsewhere tomorrow...." and you know it's an outright lie, because believe me, nobody in nebraska is waiting for my 5 year old 2 wheel drive truck.

I agree it all goes back to trust. These kinds of stories can be hard to believe, but may in fact be true.
There's a company near us called CarMax. There are a nationwide used car dealership.
From what I've read, they not only ship cars from their locations in the country, they also put the word out to used car wholesalers when their after a specific car. The story may actually be true and it sounds like it would be good quick business for a dealership if they can flip a car immediately for a quick profit. I'd ask him why and how he knows someone is after mine. Of its BS he'll dance around the answer.

 

[r77r7r]

"My google-fu shows local dealers trying to get 18000 to 19995 for 2010 Ranger 4x4 extended cabs under 100K
I am also noticing that the smart shoppers don't tend to pay more than 15000 for the 4x4 and 13000 for the 4x2
So if it checks out I figure 12000 offer if it's a 2 wheel drive, and 13500 if its a 4x4."

13500 offer on a 19995 truck? Wow, I didn't think someone could come in that low. Or, rather, I didn't think they marked them up that much.

 

[slojas]

Just a few more hours until I head down, i'm tired but well studied, will update tonight.

 

[slojas]

"12-0226213500 offer on a 19995 truck? Wow, I didn't think someone could come in that low. Or, rather, I didn't think they marked them up that much.

Yeah, it gets pretty scary when you start digging into it, new car sales have pretty slim margins but used car sales can have huge profits in the thousands of dollars in a single sale.

 

[18SixFifty]

This is my method. Save money, pay cash. If I can't pay cash I can't afford it. This was also how I bought my house. 44 years old four kids and retired. Then again I could put myself in debt over and over and work full time until I'm 70.

Ask yourself a simple question. How many hours will you need to work to pay that vehicle off and is it worth it?

 

[18SixFifty]

This is my method. Save money, pay cash. If I can't pay cash I can't afford it. This was also how I bought my house. 44 years old four kids and retired. Then again I could put myself in debt over and over and work full time until I'm 70.

Ask yourself a simple question. How many hours will you need to work to pay that vehicle off and is it worth it?

 

[slojas]

Yeah, it gets pretty scary when you start digging into it, new car sales have pretty slim margins but used car sales can have huge profits in the thousands of dollars in a single sale.

For example-
2008 Malibu 50000Km's
$13995 sale price (Fall 2011 value)
$0 trade, lease return
Already at $13995 profit
$2500 extended warranty
Back-end profits on 7.9% financing say about $800
Total profit of $17295 on $14000 market value car

 

[DaveP]

I'm looking at a 2004 Dodge Ram 1500 4 door truck (102k miles) from a private party, a friend who bought it new and garaged it every night. This guy is meticulous about washing, waxing, maintenance, and particular about every aspect of his vehicles. He drives the speed limit and doesn't hot rod a vehicle.

He's dealing on a new truck and won't jump, so I'm playing the waiting game with him!

You have to be willing to walk and not let the dealer get you into a buying mode. Don't play the games where they want to hold your license while you test drive or leave a deposit to do so. That just enables them to play games with your head and stall you into staying until they give back whatever they are holding.

Make an offer and walk. Let them do the worrying. Leave your contact info and go to the next dealer. Let them know where you are headed next. Name names to insert some reality into their heads.

 

[fourtytwo]

The last three cars I bought I just went into 6 or 7 dealerships and proposed the same thing.
I outlined the car and options I wanted and asked for the best price they can give me. I then explained that I was going to 5 or 6 other dealerships and asking for the same thing. Whoever gave me the best price got my business. If anyone gave me a price and then proposed that I give them a chance to match or beat another price, I would respond with a hurt look and ask if that meant that their "best price" was not in fact the best that they can do.
I got pretty good prices all three times. I'm sure I could have done a bit better but my time is worth more to me then the frustration of car shopping.

 

[slojas]

the truck we looked at today was a disappointment, for a 2010 it was in pretty rough shape
-Windshield badly cracked.
-Cigarette burns in interior.
-Rear bumper damaged.
-Paint badly chipped and scratched.
-Rust starting to form in several places.
-Couple signal light lenses broken.
-Sheet metal has lots of little dents.

All for the low, low price of $17995.00 14.9% 72months, we didn't even bother with a test drive, we politely explained we expect better for our money and told the salesman to call if something better comes into the lot.

I have 3 other dealers on the list for consideration, each with a reasonable truck and prices at, or below Edmunds appraisal evaluation. list prices are 10900 to 12999 so they are very budget friendly, 2008 or newer and under 80000kms.

My wife still really wants a 2010+ low milage Canyon ext cab, but with retail at $17500+ and wholesale at $15500 it may be an unreasonable expectation considering the higher intrest rate. At this point I am starting to think that the wise thing to do would be for her to buy one of the reasonable older trucks for 10000, pay it off in 2 years, making her credit strong enough to qualify for prime rate , then go and make a deal on new truck, by then my car will be completely paid off as well.

Or win the lottery and go all out...