Pretend youre buying a used car...

Submitted: Friday, Jan 13, 2017 at 18:50
ThreadID: 134101 Views:4022 Replies:9 FollowUps:14
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...doesn't matter what type, youre paying cash and theres no trade in. Its a straight buy.

Its 34k asking price at a yard. You play the game of lowest price etc with the dealer. what price will YOU drive away with the car for?
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Reply By: Steve - Friday, Jan 13, 2017 at 19:11

Friday, Jan 13, 2017 at 19:11
Going off past experience I'd say 2k off is a given... it does depend on several issues, tbf to the yard. No real simple answer though.
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Reply By: Ozi M - Friday, Jan 13, 2017 at 20:39

Friday, Jan 13, 2017 at 20:39
I would need to have a good idea of its value before starting the argy bargy.

Red Book or Car Sales will give me that, then I know what it usually sells for and I know whether it is a yard that has high prices and high trade ins or a yard with lower prices and lower trade ins.

I would expect to pay no more than the "book price" subject to condition, KLM etc etc.

Some yards have huge fat, some don't so I couldn't give a sweeping answer
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Follow Up By: Shaker - Friday, Jan 13, 2017 at 22:29

Friday, Jan 13, 2017 at 22:29
Car Sales will give you a better idea of asking price than the Red Book, only amateurs use the book for pricing, dealers use current market conditions for pricing & the Book to id model changes

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Reply By: garrycol - Friday, Jan 13, 2017 at 21:20

Friday, Jan 13, 2017 at 21:20
How long is a piece of string - depends on how much you want the car and how much they need to sell.

How does $29,999 sound?
AnswerID: 607542

Reply By: Steve in Kakadu - Friday, Jan 13, 2017 at 21:56

Friday, Jan 13, 2017 at 21:56
Walk in on a Saturday morning near the end of the month, take the car for a drive and if you like it walk back in and say I want the car.

Then tell the salesman you don't need to sell the car to me you need to go and sell this deal to your boss, tell the salesman you will give them $30k right there right now and that you are prepared to walk away if he says no.

I have done this twice with success, it is the end of the month it is a Saturday and it is a quick cash turn over sale.

They will make money on the next person they need to get baby sit to get a sale.

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Follow Up By: Dusty D - Saturday, Jan 14, 2017 at 08:27

Saturday, Jan 14, 2017 at 08:27
I fully agree, Steve.

Car salesmen pick their "marks", they are masters at judging who will pay the asking price and who will walk away unless the price is right.

During the late 90's I worked the spanners for Bridge Toyota in Darwin and there was always an attempted clean-out of used cars towards the end of the month and it was the best time for a potential buyer to get a deal they were happy with.

I bought a '97 Troopy there in 2000 (still have it) and I got it at a "staff" price of $31k - the asking price in the yard was $36k. The vehicle owed the company $29k, so they still made a couple of grand profit selling it to me, but could have made $7k if the right "mark" had shown any interest in the vehicle.

Used vehicles sitting for too long in a dealership yard cost the company money and generally they are only too happy to get rid of them. Quite often they will unload them at next to zero profit just to make room for better stock, especially when there is a sudden increase in new vehicle sales which also means an increase in trade-ins – a good time to shop for a quality used vehicle.

The astute buyer will do their homework and not only know the "demand" value of the vehicle they are looking for, but also the best time to go shopping.

Dusty
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Follow Up By: Steve in Kakadu - Saturday, Jan 14, 2017 at 09:48

Saturday, Jan 14, 2017 at 09:48
One of my buys was a 99 model Troopy at Bridge Palmerston in 2002, they wanted $34, I got it for $29.

The other was a run about for the misses, it was a $6,500 I got it for $5,000
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Follow Up By: Dusty D - Sunday, Jan 15, 2017 at 07:04

Sunday, Jan 15, 2017 at 07:04
I spent my last year with Bridge working at Palmerston and left in early 2002. It was a better place to work than Stuart Park.

Dusty
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Follow Up By: Zippo - Sunday, Jan 15, 2017 at 14:03

Sunday, Jan 15, 2017 at 14:03
To Dusty's comment: "Used vehicles sitting for too long in a dealership yard cost the company money and generally they are only too happy to get rid of them."

That's certainly the case. They also get noticed by casual not-in-a-hurry buyers, and the longer they sit the more they know it hurts the dealer, aka bargaining time.

Here in W.A. AHG (at least, don't know about the others) will put a time-in-the-yard limit on used stock. If the vehicle isn't moved within that time, they RELOCATE it to another of their yards and the clock starts again.
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Follow Up By: Dusty D - Monday, Jan 16, 2017 at 07:34

Monday, Jan 16, 2017 at 07:34
That relocation process to other yards is most likely a common procedure with larger dealers around the country Zippo.

I worked for a large dealership in Sydney during the 80's and they had four used vehicle yards, the first being closely aligned with the new vehicle showroom for top shelf trade-ins. The second yard was a couple of hundred metres down the road for middle range trades, the third was out along Parramatta Rd for the cheapies and the final yard was what we referred to as the "pig pen". This yard held those vehicles that were hard to sell for whatever reason or required too much to be spent on them. Once we had 10 to 15 vehicles in it, a used car dealer would put a "lot price" on them and clear the yard out.

Dusty
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Reply By: Shaker - Friday, Jan 13, 2017 at 22:35

Friday, Jan 13, 2017 at 22:35
Dealers usually have a certain amount of "load" in the asking price to allow them to give a better trade in price, as most buyers have an inflated idea of what their vehicle is worth. It is usually very easy to negotiate the "load" amount of a clean skin deal, it's gets a bit harder when you try to eat into the true profit margin.
Cash means nothing, because dealers make a good income from arranging finance & insurance!

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Follow Up By: Paul E6 - Saturday, Jan 14, 2017 at 00:18

Saturday, Jan 14, 2017 at 00:18
Cash means nothing? First time ive heard that
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Follow Up By: Member - Jack - Saturday, Jan 14, 2017 at 08:21

Saturday, Jan 14, 2017 at 08:21
You are correct. Dealers mainly want the finance deal. It's usually worth more to them than the profit on the car. Many dealers are simply selling finance .. the cars are secondary. If they could make more selling corn flakes they would do that if it needed finance.
The hurrieder I go, the behinder I get. (Lewis Carroll-Alice In Wonderland)

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Reply By: Peter_n_Margaret - Friday, Jan 13, 2017 at 22:57

Friday, Jan 13, 2017 at 22:57
First, find out who owns it.
They set the price and it may not be the dealer.

Cheers,
Peter
OKA196 motorhome
AnswerID: 607545

Follow Up By: Shaker - Saturday, Jan 14, 2017 at 08:42

Saturday, Jan 14, 2017 at 08:42
Very few vehicles are sold on consignment by dealers since the introduction of the Motor Car Traders Act.
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Follow Up By: Peter_n_Margaret - Saturday, Jan 14, 2017 at 10:15

Saturday, Jan 14, 2017 at 10:15
Our OKA was in a dealer's yard for $34k (in 2003).
I found the owner. He wanted $25K.
I paid him a small deposit and then paid my mechanic to spend 2 days looking over it.
With that report, I then concluded the sale from the owner direct for $18K.

Cheers,
Peter
OKA196 motorhome
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Follow Up By: Shaker - Saturday, Jan 14, 2017 at 13:49

Saturday, Jan 14, 2017 at 13:49
I am only aware of the Victorian law:

Consignment selling

When a car is sold by consignment, it is sold by an agent acting on behalf of a person who is not a licensed motor car trader (LMCT).

It is against the law for a motor car trader to:

sell a motor car by consignment, or offer to sell a motor car by consignment, or
have a car in their possession with the intention of selling it by consignment.
You may face a fine of 100 penalty units, court action or both if you are an LMCT and sell a car by consignment.

The laws relating to consignment selling do not apply to cars sold at public auction.

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Follow Up By: Peter_n_Margaret - Sunday, Jan 15, 2017 at 18:13

Sunday, Jan 15, 2017 at 18:13
An OKA is not a "car".
Maybe that is the difference?

Cheers,
Peter
OKA196 motorhome
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Follow Up By: Shaker - Sunday, Jan 15, 2017 at 21:46

Sunday, Jan 15, 2017 at 21:46
As long as the seller isn't a licensed motor car trader, it could be sold on consignment. Originally the act called for the trader to placed the agreed net amount in to a trust account until the vehicle was sold, the funds would then be transferred to the owner, it was found to be an unwieldy & unworkable system, so it was easier to place a blanket ban on consignment deals.
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Reply By: Paul E6 - Saturday, Jan 14, 2017 at 00:17

Saturday, Jan 14, 2017 at 00:17
Maybe I was unclear, I wasn't asking advice - I was really after anecdotes from the experienced.
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Follow Up By: The Explorer - Saturday, Jan 14, 2017 at 10:41

Saturday, Jan 14, 2017 at 10:41
You did say "pretend you're buying a used car"...which would include people who have never actually done it :)
Cheers
Greg
I sent one final shout after him to stick to the track, to which he replied “All right,” That was the last ever seen of Gibson - E Giles 23 April 1874

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Reply By: gbc - Saturday, Jan 14, 2017 at 06:26

Saturday, Jan 14, 2017 at 06:26
Start at $28k, drive away for $30.5k
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Reply By: Baz - The Landy - Sunday, Jan 15, 2017 at 08:34

Sunday, Jan 15, 2017 at 08:34
Difficult to answer your question on what price you will walk away with, so I won’t give that a shot.

My view on doing business is that everyone needs to walk away feeling they benefitted from the transaction and that includes buying a car. Once someone realises you are simply there to buy on price and to try and drive him or her into the ground on price the interest factor from him or her declines rapidly, and this could be to your own detriment.

On car sales, I suspect sales professionals selling cars have seen and heard it all, but ultimately I have found that if you work with them, don’t waste their time (so they don’t waste yours), be clear and concise about what you want and what your price range is, then mostly you’ll end up with the deal you want.

And of course, do your research before going near a car dealership and when you do, be courteous!

The approach has always worked well for me over the years, and not just with cars.

My couple of bob’s worth on a Sunday morning, enjoy the day!

Cheers, Baz – The Landy
AnswerID: 607570

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