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Feb 13 2020

Dealerships that sell used cars ^ Video

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Dealerships that sell used cars

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How much do dealerships buy used cars for from auction? Can I know this when making an offer?

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Answer Wiki

No, probably not. As a Sales Manager, I only show people the auction value if we are selling the car under that value, which does happen sometimes.

But it’s irrelevant. What matters is what they are willing to sell them for. A dealership is a for profit business, just like every other business you do business with.

The sales manager will look at how long the car has been on their lot, and your offer, vs the probability of selling it to someone else for more, and make the decision.

And don’t think telling them their job is going to help you. I love it when people tell me about flooring costs and how I need to move the car. Seriously? I do this every day. It’s an extremely competitive business. I know my job… So does every other sales manager.

Here is the straight up truth on how to get the best price on a car:

  1. Be polite, if not friendly. You catch more flies with honey etc. It’s amazing how terrible people are to their sales people sometimes. And yet the polite people that are a pleasure to do business with, but won’t flex on their negotiating, get just as good if not a better deal, as well as certainly a better experience for all.
  2. Know the cars value. Kelley Blue Book – New and Used Car Price Values, Expert Car Reviews . Guaranteed savings on new & used cars.New Cars, Used Cars – Find Cars for Sale and Reviews at Autotrader .
  3. Make an offer, and more importantly, justify your offer. Our sales people are trained to ask people “Where does that number come from?”

If it’s based on what you wish you could buy it for, it carries little weight… I wish everything was free. But it isn’t.

If it’s based on a price from a local competitor, that is the strongest justification. Pull up auto trader and say you’ll drive to XYZ dealership and buy this car that is the same for $XX less. But know that any good sales person will pull it up and try and convert it to an apples to apples comparison, and this is only fair. Price in the market, is a function of model, condition, year, mileage, equipment, etc. So if you find a car that has 20k miles more for less, well, duh. My car has 20k miles less, it’s worth more. If you find an LX and my car is an EX-L, well of course mine costs more, it has more equipment.

Far more powerful than saying you just want the price lower… or saying you can’t afford more… ETC. Price is based on the market, it’s supply and demand and competition. Justify your offer, and you’ll have them accepted at a much higher rate.
As much as I hate to say this, be willing to leave. You might actually leave. If they let you leave without giving a final price, or give you a final price on your way out, that is the best price they are willing to sell it at, today.

Because every dealer wants to sell cars. When you are there in person, their probability of selling a car is much higher. If you leave the lot for any reason, their chances of getting you back plummet.

You can do all of the above while being polite, friendly, having fun with the sales staff, and without any insider knowledge, such as, re the OP, the auction value.

You have far more information available as a consumer then at any point in the past, and it is amply enough to get the best price possible, with just the three websites I linked, and a little knowledge of how negotiation works.

Flip the script, and think about YOUR car you are trading in. You are selling it to the dealership. Does your cost effect the value?

AKA, if you owe $20,000 dollars, does that guarantee I, the dealer, will buy it for $20,000, when I can buy one at auction for 10k? Of course not.

How about if you own it outright, and your “cost” is nothing? Are you going to give me the car? Of course not.

Value and cost are not necessarily related.

If someone was to give the dealership a car somehow, you think we’ll give it away? Of course not. We’ll sell it at market value.

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SOURCE: http://www.quora.com/How-much-do-dealerships-buy-used-cars-for-from-auction-Can-I-know-this-when-making-an-offer

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