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Your rich uncle Laszlo passes away and when they're executing his will, you're surprised to find not only that he had a 1959 Ferrari Testarossa in a climate-controlled garage, but that he left it to you because of your enthusiasm for automobiles.
The car is appraised at $10,000,000 and all the big car magazines and blogs are doing a story about how you obtained the car and you're the luckiest person on earth at that moment. Unfortunately, you don't have the means with which to properly maintain a $10,000,000 car, and decide to put it up for sale.
Some guy in a Tommy Bahama shirt driving a '91 T-Bird comes by with printouts from topgear and yahoo proving that you didn't actually pay anything for the car and tells you he'll give you a grand for it; after all, its' a grand more than you would have had if you hadn't just gotten the thing handed to you!
Would you sell it to him, or tell him to pound sand and wait for a Swiss banker, NASCAR team owner, and a wealthy Sultan to invite you to dinner at a swank place in Manhattan to discuss negotiations while munching a $700 steak?
Again, to me, it's immeterial what the dealership paid; if the dealer paid $4500 for the car, lists it at $6k, but is selling it at $5k just to move it off the lot - fine, if $5k works for me. If he paid $500 for it, lists it at $6k, but is holding firm at $5k because he bought that car for a stupid-good price at auction - fine, if $5k works for me.
No - not at all. I was being wildly sarcastic. I, personally, don't fault anyone for making a profit, as long as done in a reasonable, honest, way, be it dealer, private party, broker, auction house, whatever.
If that means buying a vehicle at auction for as cheap as possible, spending some recon dollars to make it nice, and selling for a major profit, so-be-it.
The tone of this thread, however, has bee significantly different ....
Not everyone is looking to rip off the dealer by knowing auction values. Im trying to replace my 3/4 ton ext cab work truck with 8' bed. Supply and demand has these trucks at a retail premium more than I can afford. I use my truck to earn an honest living and cant afford someone making an 8, 000 dollar profit just because of supply and demand. But Iwould like to be able to make an offer on a trade thats been on the lot to long and is being ready to be sent to auction. I get a truck I can afford and earn a living with and the dealer makes a little more than they would sending the yruck to auction. Seems fair to me 2007 GMC SSIERRA CLASSIC 2500HD SLT EXTENDED CAB 8 FOOT BED DIESEL 4X4 70, 000 MILES LOADED.
Not everyone is looking to rip off the dealer by knowing auction values. Im trying to replace my 3/4 ton ext cab work truck with 8' bed. Supply and demand has these trucks at a retail premium more than I can afford. I use my truck to earn an honest living and cant afford someone making an 8, 000 dollar profit just because of supply and demand. But Iwould like to be able to make an offer on a trade thats been on the lot to long and is being ready to be sent to auction. I get a truck I can afford and earn a living with and the dealer makes a little more than they would sending the yruck to auction. Seems fair to me 2007 GMC SSIERRA CLASSIC 2500HD SLT EXTENDED CAB 8 FOOT BED DIESEL 4X4 70, 000 MILES LOADED.
If you can't afford it, you can't afford it. Why should the dealer sell it to you at a $2,000 profit when the next guy in the door will happily let him make his $8,000 profit?
And again, what does profit really have to do with it? If the going market rate for a vehicle is $20,000 does it really matter whether the dealer has the expected $15-$17,000 invested in it or got lucky and picked it up for $10,000?
Bottom line, decide what you want to pay and make your offer. If the dealer will make more selling it to you than taking it to auction he'll sell it to you. The only exception might be if the dealer knows there are serious mechanical issues and he wants to dump it someplace where it won't come back to haunt him. If that's the case then he's doing you a favor by not selling to you.
The going rate would be about 23000 which I could afford but just because there is a shortage of ext cabs with 8 ' beds doesnt mean I should have to pay 29000 for it if everyone takes on the mentallity of get as much as you can for yourself with no regard to others we all suffer as it gets passed along. Since I have to replace my 08 ram 2500 the more I have to pay over what that was valued at would get passed to my customers as I would have to raise my rates to pay the extra on the truck and still put food on the table for my family. The chain of take take take has to be broken somewhere
The going rate would be about 23000 which I could afford but just because there is a shortage of ext cabs with 8 ' beds doesnt mean I should have to pay 29000 for it if everyone takes on the mentallity of get as much as you can for yourself with no regard to others we all suffer as it gets passed along. Since I have to replace my 08 ram 2500 the more I have to pay over what that was valued at would get passed to my customers as I would have to raise my rates to pay the extra on the truck and still put food on the table for my family. The chain of take take take has to be broken somewhere
The point you're missing is that if there weren't plenty of people willing to pay $29,000 for the truck the dealer wouldn't be able to sell it for $29,000. That's what sets the market price, not the fact that if you have to pay that much you'll have to pass the cost along to your customers.
I'm also a person who needs an extended cab with an 8' bed. I'm also frustrated by the fact that they're hard to find at a decent price; but I'm willing to accept the fact that it's nobody else's problem but my own. I get around it by continuing to drive the same 1990 D150 that I've had for 10 years, pictured below:
The going rate would be about 23000 which I could afford but just because there is a shortage of ext cabs with 8 ' beds doesnt mean I should have to pay 29000 for it if everyone takes on the mentallity of get as much as you can for yourself with no regard to others we all suffer as it gets passed along. Since I have to replace my 08 ram 2500 the more I have to pay over what that was valued at would get passed to my customers as I would have to raise my rates to pay the extra on the truck and still put food on the table for my family. The chain of take take take has to be broken somewhere
See bits in bold.
The fact that there is a shortage does apparently mean you should pay "$29,000".
This appears to be simple supply and demand, and has almost nothing to do with what the dealer paid for the vehicle.
Actually, scratch that. If there is a shortage of a vehicle, all around, it costs the dealer more to acquire the vehicle, either at auction, trade in, whatever, inflating prices to you. Unfortunately (well, fortunately for business owners), thats how economics works, at its most simple level.
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