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Bobzilla
Bobzilla MegaDork
5/31/17 2:15 p.m.

So the wife and I went looking for cars for her on Monday. She fell in love with the 15-16 Sonata. perfect. We have a budget, looking for cars in that price range (12-15k). Found the perfect car in Chicago. 26k miles, Internet price $12,677. Offered them 11,900 cash pick it up saturday. Instead of a counter offer or anything I get robo-emails and a "how did you get to your numbers?" response.

She checked a couple local places that wouldn't even take $900 off the price. Yeah... apparently they don't want to sell them that bad.

NEALSMO
NEALSMO UltraDork
5/31/17 2:25 p.m.

Around here the corner lots are selling cars for the same price they are buying them at the auction for. I'm guessing they are making money off the back end (financing) and/or pocketing sales tax. So no wiggle room for negotiating.

Bobzilla
Bobzilla MegaDork
5/31/17 2:29 p.m.

Yeah, I've been gone for a couple years now.

docwyte
docwyte Dork
5/31/17 2:29 p.m.

Or they know they can sell them for more than what you're offering....

travellering
travellering Reader
5/31/17 2:30 p.m.

Yeah, what he (NEALSMO) said. Most of the buy-here pay-here lots near us won't even give you a cash price. We've actually been told "you're not our type of customer," when trying to get a real price on a car instead of just how much the monthly payments would be...

Bobzilla
Bobzilla MegaDork
5/31/17 2:31 p.m.

In reply to docwyte:

When they're "reducing price" and I'm not crazy low balling (seriously, $700)....

Streetwiseguy
Streetwiseguy UltimaDork
5/31/17 2:34 p.m.

No trade in? No profit.

No financing? No kickback.

Cash deal? No way to make the number. berkeley off.

mazdeuce
mazdeuce MegaDork
5/31/17 2:44 p.m.

When I bought the Volt I told them I could pay cash or finance, whatever works for them, as long as they could find me a loan for 3%. I don't have a problem with them making money writing a loan. I can pay it off whenever, you guys make a few bucks, we're all happy. Except.....they look me straight in the eye and say "we don't make any money on the loans". Ok, now you're lying to me and I don't trust you. Great job destroying any relationship we might have had.

Bobzilla
Bobzilla MegaDork
5/31/17 2:48 p.m.

In reply to Streetwiseguy:

I didn't realize that the used car margin had gotten so slim in the last 2.5 years. Most used cars on our lots had 2-3k in margin. $700 was not an issue.

Robbie
Robbie GRM+ Memberand UberDork
5/31/17 3:13 p.m.

I'm pretty sure most used car dealerships don't want to sell cars. They want to find suckers.

You would struggle to buy a car advertised for $12,677 with $12,677 in cash.

BoxheadTim
BoxheadTim GRM+ Memberand MegaDork
5/31/17 3:19 p.m.

They want to sell financing instead of a car. Although at some point I'll expect them to maybe be willing to sell a car if it's been hanging around their lot for a while. But not a buy here/pay here lot.

Bobzilla
Bobzilla MegaDork
5/31/17 3:51 p.m.

So apparently 6% sales tax on $10,700 makes the total $12k. I like this math. I wish my bank account worked like that

wearymicrobe
wearymicrobe UltraDork
5/31/17 4:05 p.m.
Streetwiseguy wrote: No trade in? No profit. No financing? No kickback. Cash deal? No way to make the number. berkeley off.

Seriously the market has been going buy here pay here for the last 5-8 years. I know a seller locally that has sold the same damn A4 five times over and collected the deposit and a few months payments from each buyer before repossession.

Buy the car from a PP that is your answer.

EvanR
EvanR SuperDork
5/31/17 4:16 p.m.

Same with the used-car lots at new-car dealers. I've been to a few lately, and the second question from the sales guy's mouth is "Are you going to finance?"

EastCoastMojo
EastCoastMojo GRM+ Memberand Mod Squad
5/31/17 4:29 p.m.

Do they have an early payoff penalty? If not, sign up for their financing plan and then when the first payment is due write a check for the entire balance.

Bobzilla
Bobzilla MegaDork
5/31/17 4:29 p.m.

In reply to wearymicrobe:

People that own them aren't selling ;)

patgizz
patgizz GRM+ Memberand UltimaDork
5/31/17 4:50 p.m.

Repo auction?

curtis73
curtis73 GRM+ Memberand PowerDork
5/31/17 4:51 p.m.

I would write for less than invoice on a finance or lease deal knowing I'd get crazy money from interest.

Cash deal I wouldn't take less than 7% over what I paid. OK, sometimes I would just to get a liability off my lot, but I never sold anything for less than $200 profit because I knew I had overhead. Electric bills don't pay themselves.

The old saying of "cash talks" is something we in the business like to let you believe, but "we finance anyone" at 23% APR talks a lot louder.

wearymicrobe
wearymicrobe UltraDork
5/31/17 5:08 p.m.
Bobzilla wrote: In reply to wearymicrobe: People that own them aren't selling ;)

Well there is a demand then and your price may have been wrong.

FYI I deal with the scum at the bottom end that sell cars to desperate people. Plus the top end selling exotics to people who pay in all cash or lease. On the bottom end finance is where you make your money and the exotics price point is king.

Bobzilla
Bobzilla MegaDork
5/31/17 5:56 p.m.

there's a ton of these off lease at dealers all over the country. but all those dealers are wanting to finance and get the kick back. berkeley em. I'll find what I want eventually.

Toyman01
Toyman01 GRM+ Memberand MegaDork
5/31/17 6:18 p.m.
wearymicrobe wrote:
Streetwiseguy wrote: No trade in? No profit. No financing? No kickback. Cash deal? No way to make the number. berkeley off.
Seriously the market has been going buy here pay here for the last 5-8 years. I know a seller locally that has sold the same damn A4 five times over and collected the deposit and a few months payments from each buyer before repossession. Buy the car from a PP that is your answer.

This.

I sold a truck to a buy here pay here lot once. It was a $1500 truck, that he gave me $1500 for. He said he would clean it up to sell, collect a $1500 deposit plus 3-5 payments of $350. Then he would have to repo it for non-payment, clean it up, sell it again, collecting the same deposit and payments from the next sucker. Wash, rinse, repeat, until it was totaled, gone, actually paid for, or junked.

I honestly don't think he actually wanted to sell the car. Just rent them long enough to collect a few payments and repo it, because after the first deposit, everything was pretty much profit. And if someone actually paid off the car, he'd have to buy another one.

jstand
jstand HalfDork
5/31/17 7:31 p.m.
Bobzilla wrote: there's a ton of these off lease at dealers all over the country. but all those dealers are wanting to finance and get the kick back. berkeley em. I'll find what I want eventually.

Maybe I'm naive, but I thought dealers were in business to make money?

A good deal should work for both parties, so expecting them to make no profit seems one sided.

Seems like fighting the system is a lot more aggravation than taking ECM's advice of financing (as long as no early payoff penalty) and then paying it off right away.

You have a better chance to get the car at price you want, rather than spending time and energy fighting he system, that could be better spent on things that are more fun and productive.

Jerry
Jerry UltraDork
6/1/17 7:02 a.m.

So many dealerships (& stores in general) outside of the Naval base when I was in, advertising "We finance E-1 and up!". Yeah, I'll bet you do.

Bobzilla
Bobzilla MegaDork
6/1/17 7:07 a.m.
jstand wrote:
Bobzilla wrote: there's a ton of these off lease at dealers all over the country. but all those dealers are wanting to finance and get the kick back. berkeley em. I'll find what I want eventually.
Maybe I'm naive, but I thought dealers were in business to make money? A good deal should work for both parties, so expecting them to make no profit seems one sided. Seems like fighting the system is a lot more aggravation than taking ECM's advice of financing (as long as no early payoff penalty) and then paying it off right away. You have a better chance to get the car at price you want, rather than spending time and energy fighting he system, that could be better spent on things that are more fun and productive.

I am all for a dealer making a profit. That's how they stay in business. I get that. But not with tricks and sleight of hand. Sorry, that's just not cool.

As for the financing and paying it off, there are always up front fees and the wife refuses to deal with that or pay them. She's not budging on that.

John Welsh
John Welsh MegaDork
6/1/17 8:11 a.m.

Do you have any interest in a 2012 Kia Forte because this looks like a great deal.

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