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We are in the market for a new car for my DW. She fell in love with a particular model of a luxury car known for its reliability. As I have done before I searched the internet for a low mileage (prefer under 10,000 miles) used version of the vehicle and found them to be selling for around $33,000 to $35,000. While could likely afford this DW comes not want to spend that much. She has test driven a number of lower cost cars but has not found anything she really likes so she keeps coming back to this particular luxury car as her dream cr.
In my search I stumbled across a car that meets her needs with less than 3,000 miles on it but is at a middle of the road dealer. The price of this car is the same as certified used versions at dealers that sell the vehicle new ($34,000). It struck me as a bit odd but I sent the dealer an email asking some questions. A salesman replied with the answers.
Then tonight I received an email from someone else at the dealer explaining to me that this vehicle is a manufacturer buy back. The original owner claimed there was a problem with the transmission so the manufactuer bought the car back. The guy says the manufacturer found nothing wrong with it so this dealer who does not sell this type of vehicle is now selling it. Has anyone heard of this before?
Would you buy this car? It has been on the dealers lot for 45 days. My thought is maybe offering significantly less, like maybe $27,000. The car is a 2015 and has a 50,000 mile or 48 month warranty on it so really only has 2 years left if anything goes wrong. I would definitely ask for documentation of the cars history. Anything else I should ask about? Any advice would be greatly appreciated. Jay
I'd find out if there's anything unusual about the vehicle.. Examples.. First model year with a CVT tranny.. or like when Chevy did the 5 cylinder experiment back in the mid-2000's.. They wound up having head issues with those engines.
You should also check that the manufacturers warranty extends to you. Normally it does, but there are catches.. Like the Kia 5/100k warranty is really only a 3/36, the extension is for original owner only, I believe.
In general, you should feel fairly safe if there is a warranty covering it and there's none of the oddities like I mention above. You never know what the original owner 'thought' was wrong with the transmission. It could be legit, it could all be in their heads. You throw a $27k offer, I doubt you get the vehicle. You might talk them down $1k.. that's probably all, though. There's likely people lining up looking at that car. It's not going to sit on their lot for a long time, so.. They have no incentive to give you $7k off the price.
Find out the cost of a new transmission from a qualified shop, if you want to make an offer on the car. A buy back is generally auctioned, which is why it would be at a non-franchised dealer. I would not take the risk on it, although sometimes the manufacturer will extend the warranty to cover problems, but you may have to keep bringing the car in for repair, with no lemon law protection as it is a used vehicle. New York allows for a return period under the used car warranty coverage period, but not all states do, and I do not believe Connecticut does. So, you could be stuck with a problematic vehicle that is constantly being repaired without recourse.
Before a buyback, the manufacturer has to try to fix the complaint, which may be less expensive than buying the car and taking a loss when consigning it to dealer auction. It's a last ditch effort when dealing with a lemon law claim on a new car to go that route, and if the car could be fixed by merely installing a new transmission, the manufacturer would have done that to avoid the buy back. Once returned, the car was not inspected further and was shuffled out of the franchised dealership to auction and is on the secondary market with a vague description of the issue. If you could get a copy of the repair history on the car, that may be a clue as to the complaints on the vehicle, but that might not be easy to do, unless you have a service advisor with whom you are friendly within the manufacturer's dealer network.
If proceeding with the purchase, I would want a substantial discount for the aggravation of potential problems and replacement of the problem unit. At 45 days in inventory, you may get a discount, but I'd personally go for a certified vehicle without the problematic history at the same price. If it is a first model year, like the Acura TLX, be wary because there were issues with the new 9-speed transmission that registered as a dip in expected reliability of the TLX with that model year, something addressed for 2016, but if this car was bought back for a faulty transmission and is a 2015 TLX, I'd wait for a closeout on a new one or for a 2016 CPO.
One way you might get to find out some of the car's history would be to take it to the franchised dealer for a pre-purchase inspection. By VIN, the service advisor could find out the problems, and since they know you want that particular brand and model, could sell you one of theirs, should this one have a very problematic history, which it would if it were a buy back.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
Don't do it.
A couple where I work did and came to grief.
My immediate thought was "you bought a known lemon and then were surprised when it had problems?"
Lots of people bought the 6.0 diesel Ford buybacks. For a while you could buy a year or two old 6.0 for literally 50% off sticker. As a rule I wouldn't buy a manufacturers buyback. If I did I would make sure I got a a manufacturers warranty along with a extended manufacturer warranty to cover the big ticket items (basically the drivertain ).
A buyback usually means that the vehicle was problematic in one or more areas and the dealer could not fix it to the customers satisfaction. Now that could also be a buyer who got in over his head, knew how to play the law to legally get out of the purchase.
Don't buy someone else's lemon. It takes moving the sun and stars to get a buyback, and you will have paid a premium for a problem child.
Couldn't have been stated better.
Why in God's name would anyone even consider such a purchase - warranty or no warranty.
Do you really have the extra time to keep getting it fixed? Again?
Why complicate your life with such a purchase.
I ordered a new Chevrolet truck. Exactly what I wanted for options and colors. Nice truck.
Except the truck vibrated.
Multiple multiple trips to dealership. New replacement Axle. New replacement rims. New replacement tires, etc. The vibration lessened. But still there. And I drove on highway with service manager. And it still vibrated. Service manager stated there was nothing more that could be done.
I didn't have the time nor energy to fight this and ultimately get a new truck. Lemon laws and such. Safety issues. Arbitration Boards, etc. I just traded it in and let someone else do all of this OR get STUCK.
If you cant resist this deal get a thorough independent mechanical inspection before laying down your money.I had a similar experience some time ago but didnt get an inspection ,turned out the car had been in a major wreck and ended up to be nothing but problems, i had to threaten legal action to get my money back. .They used to call these cars demonstrators .
Thanks everyone for the opinions. I am now reconsidering this. The dealer just dropped the price again but it is still at or near what Certified vehicles are going for. Since this car would be for my wife, I am now a little hesitant to pursue it. I may respond to their email saying this and see what happens. Thanks, Jay
DO NOT BUY IT. It has red flags all over.
Lexus, right? There is only ONE luxury marque known for reliability.
What's wrong with buying private party? That's when you get REAL deals. Sure, you can get loan for that. Your co-op or bank. We bought wife's RX350 for easy $8K less than any dealer around and for worse cars.
never forget - middle of the road dealer buys CHEAP cars. There is never a good reason they are cheap. I made that mistake ONCE and will never ever let it happen again.
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