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Dealer is selling a 2014 BRZ Limited with 26000 miles for $23,000 and refuses to budge saying they have done extensive pricing research. Edmunds TMV says $20,000 is the dealer retail for a spotless car with that year, mileage and trim and I can get a brand new one 2016 with 0 miles for $26,900 now, that is an actual quote from the dealer. WTF are these guys smoking? And are anyone even buying these used cars are such a high markup? Surely there must be a lot of suckers out there?
Quote:
Originally Posted by Me007gold
If the car is still on the lot, nobody is buying it. Eventually they will drop the price/sent it to auction or it will sit there forever.
This is true. BUT...
Look at this from both directions. Since you think its so overpriced, go two towns over and buy a similar one there. Surely, there must be one nearby selling cheaper if you are so certain its overpriced.
The hard part of a BRZ is that there aren't tons of them around. You can look at a used Corolla and get a really good idea in short order of where the market is. To have knowledge, you need sample size. Its not much different than a house. If there are no comps, appraisal becomes more difficult.
Many dealers are now modeling their sales programs to the "no dicker sticker" brand that has a certain allure when considering the old game of "whatta ya gonna offer me" tactics of the old used iron lots of yesteryear. Sales are brisk at these places for the fact that the merchandise is priced on a sticker just like the shirt or shoes you bought, the real intent is to gain the coveted trade in. Yeah, most new car dealers are part of that cabal of car sellers that seem hell bent on ridding the world of independent used car dealers. Leasing has been the ticket to ride for the new car dealers, the car comes back into the dealer fold as a "certified" used car and gets to be a money maker all over again. The fat margins are in the used market, and the auctions are not what they once were, ergo, lease returns...
I was a licensed dealer back in the seventies and early eighties, the market was much less dominated by the new car cabal of "lease go round" programs that are essentially a rental program with a hefty potential for the return of high value used stock. The no haggle rule is a vast improvement over the one that puts the price of merchandise as a flea market kind of transaction, not a thing all are willing to engage in.. Today you are far more likely to see the actual price, not a teaser but the dealers actual retail price. The modern day common wisdom says "walk away" if you aren't getting any satisfaction, after all---you don't attempt to bargain at the shoe store do you? Don't like the price, shop down the street...
I really don't care about what the market says a used car should be. I go by the price of the new one at that moment (all rebates and specials included). If I can get a new car for marginally more, with the full warranty, zero miles, knowing that nobody else has driven it harshly why in the world would I ever consider buying a used one? To me it makes zero logical sense. A lot of the time new car prices get discounted and the "researched" market value does not have time to take all that into account.
I really don't care about what the market says a used car should be. I go by the price of the new one at that moment (all rebates and specials included). If I can get a new car for marginally more, with the full warranty, zero miles, knowing that nobody else has driven it harshly why in the world would I ever consider buying a used one? To me it makes zero logical sense. A lot of the time new car prices get discounted and the "researched" market value does not have time to take all that into account.
Which is why I told you to get the new one. Apparently, according to a couple posters, our logic is "flawed" and used is always better.
Dealer is selling a 2014 BRZ Limited with 26000 miles for $23,000 and refuses to budge saying they have done extensive pricing research. Edmunds TMV says $20,000 is the dealer retail for a spotless car with that year, mileage and trim and I can get a brand new one 2016 with 0 miles for $26,900 now, that is an actual quote from the dealer. WTF are these guys smoking? And are anyone even buying these used cars are such a high markup? Surely there must be a lot of suckers out there?
Because a dealer can take somebody with poor credit and help them apply for a bad loan and get them to overpay for used car.
Hey OP, you have the most powerful tool you could ever use at your disposal. Use the internet. I don't know where you live, but you will usually find dealers that are more eager to sell, in smaller towns. They just don't have the sales to turn customers away.
I will use my last car purchase as an example. I have a large family, wife and I, and 4 kids. I live in MT so 4 wheel drive is a must. So I needed a large SUV with 4x4. Locally, I couldn't find anything I liked. I hit the internet and found a small independent used car dealer with a low mileage Expedition we liked. I called, let the dealer know I was preapproved but I had to drive 2 hours, so I wanted the price lower. He jumped at the chance to make a sell. I wound up getting 2 grand off the listed price, and a full tank of gas. I checked KBB before I called and the truck was listed below the average already. So 2 grand off put it below the national average.
Subaru North America sells every car it makes in 14-20 days and current has capacity issues so it can't take advantage of high demand. If you can find a Subaru dealer that is trying to be high volume, you can actually come out ahead buying new if they're willing to go invoice price (or slightly below) because those kinds of dealers are willing to take a slightly lower margin on the car and make it up on volume- sell it slightly cheaper now and they might get a better car allotment for the next quarter. Or not sell that car and risk having their allotment cut and not being able to lay hands on Outbacks on a regular basis. We bought from the high volume folks and it cost us $100 more to get a new car in a higher trim level than the one year old base model Legacy the dealer we bought from also had on the lot.
Or alternately try to track down a Scion FR-S, which doesn't have a Subaru badge propping up resale value and you might be able to additionally haggle on under the 'but it's a dead division' logic.
That's insane, but is precisely why I avoided used car dealers when shopping for my first vehicle . . . they weren't discounting prices enough to what my research said they should (not even close).
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