What to offer a dealer on a used car

[toxcrusadr]

I always wonder how to negotiate prices since I don't buy big ticket things often. How far are dealers prepared to go down on their asking price?

Wife's looking at a 2016 Honda. I actually bought a 2015 Honda from the same dealer a year ago. Offered them about 6% less than they were asking, car was immaculate, and they didn't hem and haw very long or counter-offer. I saved about a grand but wondered if I could have done better.

Late model used Hondas don't stick around long so they have maybe less incentive to discount.

They are asking at or just above the Blue Book value at this point. It is a 'certified' used car which means they offer extra warranty on it so maybe that accounts for the higher price. I also know they get more agreeable towards the end of the month, but cars come and go fast from this place too so waiting is a crap shoot.

Thoughts?

 

[62caddy]

Factory warranted certified status usually carries a premium to book value because warranty coverage is similar to that of a new car warranty, sometimes even better in some cases.

I would need more specific details of the vehicle, ie: model, trim level, optional equipment & mileage- to get an idea how good the price you paid was.

As a used car dealer myself, I have a hard time understanding some of the prices certain used models can command which don't seem to be at much of a significant discount compared to the same vehicle when new. One example that comes to mind is used Toyota pickup trucks. It's one of the few vehicles that can be purchased new without taking a severe depreciation hit as many others will in the first few years.

 

[Hyfi]

Sometimes it depends on how much they made on the new care sale that the used one came from. If they made a killing and gave the owner lower than worth, they sometimes just want to unload it.

I traded in a really nice Delta 88 years ago on a Blazer. They hemmed and hawed and told me because of it's age they would have a hard time selling it and gave me crap. A week or so later I stopped at the dealer and they had my 88 all detailed up sitting in the middle of the showroom. They sold it for twice what they gave me.

Since that time, I have sold all my cars myself when buying a new one. I get close to double what Blue Book is because I keep my vehicles immaculate, all service records and clean.

 

[toxcrusadr]

I would need more specific details of the vehicle, ie: model, trim level, optional equipment & mileage- to get an idea how good the price you paid was.

Not that concerned with what I paid for last year's car, in fact I would rather not know if I could have squeezed another grand out of them. I was asking more in terms of percentages on the current possible purchase. Like should I offer them 10% below asking, etc. The one we're looking at now is a 2016 Accord EX-L 2.4L 4cyl with auto trans, 27,900 mi. Factory 3 yr warranty still in effect, plus extra 12 mo/12k mi from the dealer. Priced at $22,695. Wifey says the Carfax is clean, car was serviced at this same dealer, no major work, oil was changed.

I ran it thru Kelly BB estimating on a few of the features because I'm not 100% sure of all the bells n whistles. Came up $21,549 (for a Certified car from a dealer). So they are asking a couple hundred more than that. [Edit: actually 1150 more, sorry]

 

[Hyfi]

As a consumer in a numbers game, you should always offer them less and work back toward asking from there, no different than when you sell one. You ask for more than you want so whoever haggles thinks they got over on you as you hit your real price.

 

[Hajidub]

Not that concerned with what I paid for last year's car, in fact I would rather not know if I could have squeezed another grand out of them. I was asking more in terms of percentages on the current possible purchase. Like should I offer them 10% below asking, etc. The one we're looking at now is a 2016 Accord EX-L 2.4L 4cyl with auto trans, 27,900 mi. Factory 3 yr warranty still in effect, plus extra 12 mo/12k mi from the dealer. Priced at $22,695. Wifey says the Carfax is clean, car was serviced at this same dealer, no major work, oil was changed.

I ran it thru Kelly BB estimating on a few of the features because I'm not 100% sure of all the bells n whistles. Came up $21,549 (for a Certified car from a dealer). So they are asking a couple hundred more than that.

Tox I like to use carguru.com for pricing. It'll tell you if price is at/high/or below market value, how many owners, how long it's been on the lot (which is great bargaining chip). It might give you some similar cars (or this car) in your area that you could use as bargaining fodder.

Just did a nationwide search for your exact car and there was a ton of one's with under 20K miles for 3K less than your dealers asking price.

 

[toxcrusadr]

Trouble with nationwide is I would never want to buy a used car I have not driven and maybe even taken to my mechanic to look at (although I might be less concerned about a certified one with extended warranty that is this new). I just feel janky about buying that way, old school I guess. I guess I don't have to tell THEM that.

Will check out carguru, thanks for the tip.

 

[Hajidub]

Trouble with nationwide is I would never want to buy a used car I have not driven and maybe even taken to my mechanic to look at (although I might be less concerned about a certified one with extended warranty that is this new). I just feel janky about buying that way, old school I guess. I guess I don't have to tell THEM that.

Will check out carguru, thanks for the tip.

I wasn't recommending you purchase it online from another state, I just thought you could use it as reference pricing. I don't know your zipcode so I couldn't look it up locally for you, but dealers selling identical Honda's with 11K miles for 3 grand less than what yours was quoting seeming like a good bargaining chip.

I'm ruthless at car buying. Back in 2005 I bought a brand new GTI (loaded) retailing for 23,6K for 12G's. Had them discovering new/old incentives, giving 5 grand over BB on my trade-in, ect....

 

[toxcrusadr]

I am in 65202. I searched carguru for the same car within 200 mi and came up with several 2016 EX-L's. All were 'over the market rate' by $200-$600, the one we're looking at is right in the middle, and the others have slightly different mileage and/or aren't 'certified used' all of which might explain the pricing differences. Much cheaper ones tended to have quite a few more miles - like 40k instead of 27k. I didn't look far beyond our area - maybe I'll do 500 mi., that's the last stop before 'Nationwide'.

 

[toxcrusadr]

The odometer certainly does have an effect although it doesn't explain 100% of the variation. I would be surprised if it didn't make a difference! At the asking price, the one we're looking at would be off the chart - somewhere around the 'o' in 'Accord' at the top.

Wife offered $21k (which, as it turns out, is right on the above trend line) to their $22,695 asking and they said they can't do any better than 22,500. I suggested that we let them sweat for a day. Mrs.Tox is less inclined to dicker than I am and has even less experience doing it. Keeping fingers crossed that she doesn't get impatient and that someone else doesn't grab it. But, like stereo gear, there is always another one around the corner, eh?

 

[grillebilly]

Around me, dealerships tend to way overprice used cars. Used car lots are not nearly as bad. Trouble is, the dealers are not the hack artists the used car shops are. I live in a large metropolitan area so there is no shortage of con artists. The Honda being looked at is a very desirable model so it's tough to negotiate when they know someone will buy it eventually.

 

[62caddy]

Not that concerned with what I paid for last year's car, in fact I would rather not know if I could have squeezed another grand out of them. I was asking more in terms of percentages on the current possible purchase. Like should I offer them 10% below asking, etc. The one we're looking at now is a 2016 Accord EX-L 2.4L 4cyl with auto trans, 27,900 mi. Factory 3 yr warranty still in effect, plus extra 12 mo/12k mi from the dealer. Priced at $22,695. Wifey says the Carfax is clean, car was serviced at this same dealer, no major work, oil was changed.

I ran it thru Kelly BB estimating on a few of the features because I'm not 100% sure of all the bells n whistles. Came up $21,549 (for a Certified car from a dealer). So they are asking a couple hundred more than that.

I came across two values for a 2016 Accord EX-L 4 cyl - one is "Nav" (navigation?) other is not. NADA lists $20,650 (base) + 950 low mileage adj - $21,575. For Nav model, $21,700 + 950 - $22,650. (Neither price assumes Certified Pre Owned).

If the car does not have navigation, I would pass. If the car is equipped with navigation, $22,000 seems reasonable if they'll accept.

 

[toxcrusadr]

Around me, dealerships tend to way overprice used cars. Used car lots are not nearly as bad. Trouble is, the dealers are not the hack artists the used car shops are. I live in a large metropolitan area so there is no shortage of con artists. The Honda being looked at is a very desirable model so it's tough to negotiate when they know someone will buy it eventually.

No kidding. I looked at some cars at used car lots last year when I bought mine and some of those guys just did not strike me as fully trustworthy. OTOH I hate doing business with car dealers, but for better or worse, we're loaded with them here, big ones, far out of proportion to the size of the city. That's because we're the biggest city in 100 miles (or more!) in any direction so people from a lot of rural counties come here to buy cars. Finding a particular car on CL etc. for sale by private owner is hard to do here.

I came across two values for a 2016 Accord EX-L 4 cyl - one is "Nav" (navigation?) other is not. NADA lists $20,650 (base) + 950 low mileage adj - $21,575. For Nav model, $21,700 + 950 - $22,650. (Neither price assumes Certified Pre Owned).

If the car does not have navigation, I would pass. If the car is equipped with navigation, $22,000 seems reasonable if they'll accept.

Thanks!

 

[musichal]

You can get a big discount buying something like a Nissan, but Hondas are more desirable, holding value better.

Even our modest little Civic, an '08 which we bought new end of '07, is a well-built reliable vehicle. After almost eleven years it still looks virtually new, and every single feature on it still works, including the subwoofer and heated leather seats. We've done no repair, just maintenance. Of course, we've only put 45,000 miles on it, so it ought to be in good shape. We've babied it, and it's a little cream puff that still gives us 35mpg like clockwork. But we had to dicker hard to get a decentl discount.

One dealer we walked away from would only come down one cent. He began shouting at us that we were looking at the wrong car. I told him to kiss my ass at that point, and we drove from Beaumont to Houston and found a dealer who gave us a grand off. A willingness to walk is your strongest hand. We incorrectly thought paying cash was the strongest, but not so... they'll come down more if you let them finance you because they make up for it on the back end. Even the dealer in Houston tried to convince us that financing was the better way, but I told him we weren't there for financial advice, just to buy a car if he wanted to sell one. Unlike Beaumont, he did.

 

[Poultrygeist]

You can probably get a good deal on a 2018 Accord as sales are down due to their standard turbo engine. Evidently lots of people are not sold on the complexity and reliability of a turbocharged engine.

 

[Shadowdog]

What about CVT's , as they aren't rebuildable so big $ to replace as you likely aren't looking at one with a std. trans.

 

[skippy_ps]

Also look at autotrader. It'll give you a reasonable idea of what the asking prices are in your area. Of course, there is always going to be a few way out there prices but you should be able to get an idea of what the center area of the bell curve is.

Same thing with ebay. Last time I bought a used car, I looked around here some, didn't find anything reasonable so checked on ebay and found a bunch of interesting cars. Plus, you get to see the actual selling price under completed auctions.

Murray

 

[MaxxVolume]

Prices can vary widely depending on geography, i.e., certain cars will command a higher price in certain areas. Ebay can be a good barometer of what people are willing to spend. Look at the COMPLETED SALES for models similar to ones like you`re shopping for, and filter it down by area, and options on a vehicle. Try to match important details as closely as possible.
Happy hunting !

 

[BMWCCA]

Pricing guides are a bit of a self-fulfilling prophecy. You check them to see if the asking price is in the ballpark but condition and mileage are everything. The price guides can make you feel bad, or make you feel good about your "deal" but they tell you nothing about how much the dealer made on you. Yes, it is a sad fact about car dealerships that they live and die (or the managers do) by monthly sales goals so they are often willing to lose thousands to get one more sales unit, and that can work to your benefit. It also shows what a sham the whole business is . . . and I've been in the car biz since 1976.

Buy what you like and be willing to pay for something you want instead of grinding away for a hundred-dollar savings just to feel you got a "deal". A couple of years ago I went looking for a specific used BMW 5-series with a stick-shift. A bit of a unicorn these days and I made several trips by air to see cars that I thought were a "deal" only to be disappointed once I saw them in-person. I finally found one that seemed to be in near-perfect condition (for a 14-year-old car) and I bought it. When I got home with it, all my fellow dealership employees were astounded by the condition and most expected that I'd made a shrewd deal, and so did my customers who saw it. The fact is I paid $2000 over average retail value, according to KBB, because it was what I wanted and because the "books" de-value a stick-shift by roughly $2000 while I'd willingly pay $2000 more for one. So, according to the books, I paid too much—and I've been buying and selling used cars for 40-years. To me it was an exceptional value because of mileage and condition, it had what I wanted and now, a few years later, the paltry thousands I paid "over book" value is nothing compared to the satisfaction owning the car has brought me.

 

[toxcrusadr]

@musichal: We have owned two '92 Accords, one bought new, and still have a 2002 Accord which is what's being replaced. 240,000 miles, one tranny rebuild but no engine work. Pretty much oil changes, now and then a starter or alternator. Very reliable and everything works on it just as you say.

I think the car we're looking at has a CVT but it does not drive like my '15 Civic CVT. It acts more like a normal AT. The Civic is kinda weird - as a 5-spd stick guy. When I bought it someone here on AK said the whole 'not rebuildable' thing is kind of a myth.

I too am skeptical of turbos. We're not really floor-it-and-go types anyway. Although I do like some pep, not gonna lie.