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Wife bought a Grand Prix 5 years ago from a well known dealership. It was a "certified" car. Never thought of carfax back then. Traded it in, at another dealership and they said it was wreaked before.
Could the dealership prove the car had been wrecked?
By wholesale, the OP probably means auction value. Usually, dealers take cars in on trade a few hundred dollars (basically their auction expenses) back of the auction price in case they have to unload the car. On the other hand, dealers might pay more if they plan to keep it on their lot.
This is how I determine a fair price of a used car. I go to Autotrader and look at asking prices for cars over a large geographic area, say 200 miles, and they I look for the lowest 20 cars and see what they are going for. This is basically the price to shoot for. Basically, I think a select few dealers price cars to move very quickly with little effort and the others are in the game to haggle.
22,000 is probably a little low. I bet 23-24,000 is more doable.
There is no real hard and fast rule on haggling. As a very general, generalization, most dealers aim for a $4k-$5k markup on a used vehicle. That means, if they buy trade it or buy it at auction for $20k they will put it on the lot for $24k-$25k. Of course, this is ultimately governed on both ends by market prices.
How much a dealer actually pays for a used car is usually controlled by current auction pricing. Dealers will generally pay up to (sometimes even over) auction value for a pristine example of a popular car, but usually aim for a price a few hundred under auction so they have the ability to dump it if needed. The retail price is set by the retail market and is basically how much a dealer thinks they can get for the car based on what other dealers are selling similar cars for. Added in the mix is any expense the dealer needs to pay for reconditioning the car before sale. This can be a simple detail all the way up to new tires and brakes.
Put it all together and what you realize is that every single used car on a lot has it's own unique price range. In general though it will always bottom out on auction value and top out on retail market. Dealers aren't stupid and it's rare for them to be into a car for more than it is worth.
What usually happens is that a car hits the lot at market retail and then is gradually lowered down to within a few hundred dollars of auction value. This process usually plays out over a period of 60 days or so. By the time you get into the 60 day range the dealer has the marked price bottomed out (within say $500 of absolute lowest they can go) and they are getting the car ready for auction. So, if you walk on the lot then, don't expect to get much of a break off the sticker price as it is already reduced significantly.
What I have done in the past is first do your research on the vehicles value, then going in person make a firm offer that you are happy with and wait for their response.
If the salesperson comes back after talking to their sales manager with a no then turn around and start walking out, 90 percent of the time they wont let you get out the door and if they do try another dealer.
Dress nice and don't call, this negotiation is done in person!!!
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