1or2yrar old car

[mrsboz]

I have not bought a car in years. I want to buy a car that is a year or two old. Does anyone know how much I can expect to talk to the dealer down?

 

[tvguy]

Well, you could start by looking at Carmax or Hertz Car Sales, both places that do not negotiate prices on used cars. That would give you an idea if your dealer is asking going rate, or more or less than. That problem is with a used car, you never are going to exactly what the dealer paid for a used car, so unlike a new car, you can't tell how much room you have to negotiate.
For example:
My son's girlfriend 4 weeks ago sold a car to a dealer for $3,000. It needed $2,400 in repairs (at an independent mechanic)
That car has been fixed and is listed for sale for $6,995. Now, I suspect the dealer did the repairs for less than $2,400, but assuming he didn't, he is into that car for $5,400, and his markup on the lot is almost $1,600. I think that might be ballpark for many used cars. So I would never hesitate to start negotiating at about $1,500 off asking price on a used car, and be happy with $1,000 to $1,200 off. I consider $300 to $500 to be a reasonable profit for a dealer to make.
And remember, new car dealers make most of their profit on repairs, then on used cars. They make their least profit on new cars sales.

 

[wishesuponastar]

My DH needed a car in December and got dealer to take off $1,500 on a 2015 Civic that was used as a loaner. Only had 3,000 miles on it.

 

[powellrj]

You may find a better deal on a new car these days. When you can get rebates and such, new cars can be a better buy.

 

[tvguy]

My DH needed a car in December and got dealer to take off $1,500 on a 2015 Civic that was used as a loaner. Only had 3,000 miles on it.

I would expect to get $1,500 on a new Civic based on the dealer invoice I just looked . I would expect more off on that one because it is a used car...even if it was used as a loaner.

 

[tvguy]

You may find a better deal on a new car these days. When you can get rebates and such, new cars can be a better buy.

I agree. The shortage of used cars created by cash for clunkers finally seems to be easing, that drove used car prices through the roof.

 

[wishesuponastar]

I would expect to get $1,500 on a new Civic based on the dealer invoice I just looked . I would expect more off on that one because it is a used car...even if it was used as a loaner.

Story of our life, we never make a good deal on cars ugh

 

[Judique]

I would expect to get $1,500 on a new Civic based on the dealer invoice I just looked . I would expect more off on that one because it is a used car...even if it was used as a loaner.

Ummm....we got 3K off on a new civic in 2013....

That said, we bought a loaded model and it seems to me the more loaded the car is the more likely you are to get a higher number off and you will still pay plenty.

 

[#1hoosierfan]

We wanted to buy a Honda Pilot that was a year or two old. The resale on them is so high, and the rebates/interest rates on the new we're so good, we were better off buying brand new.

 

[tvguy]

Ummm....we got 3K off on a new civic in 2013....

That said, we bought a loaded model and it seems to me the more loaded the car is the more likely you are to get a higher number off and you will still pay plenty.

Exactly. I would expect to get AT LEAST $1,500 off sticker. But of course you never deal down from the sticker on the car, you deal up from dealer wholesale cost, which is less than dealer invoice. Consumer Reports sells the data that tells you what the dealer really is paying for the car. They have holdbacks from the automakers. So they may pay $20,000 for a car, but when they actually sell it, 2 or 3% of what they paid for the car is refunded to them by the auto maker. Last new car I bought I paid $350 over actual final dealer cost, which was about $4,000 of the sticker on the car. My wife's SUV we paid $400 over actual cost, but that was $7,000 off sticker.

 

[wannabee]

We bought a new 2015 Civic in December. Price from dealer was lower than a couple 2013's we found.

 

[mrsboz]

After looking around, I am thinking new. How about new? How much should I expect to get off sticker price. I am looking at toyotas and when I asked how much he would go down, he looked at me like I was crazy that I expected him to take money off

 

[xlxo]

• When I went looking for a Toyota hybrid.... the price difference on a three year old vehicle was negligible.... I decided to buy new.
• Looking at a second vehicle, but a full electric. Can't believe how cheap the 3year old Nissan Leaf's have fallen. It's like 50% off.

In some cities..... Toyota dealerships have agreed to a "no haggle" policy.... but watch in the Fall/Winter when previous year clearance sales come on.

@mrsboz: To clarify.... Which Toyota model have you shortlisted?

 

[Pea-n-Me]

You are asking very broad questions. There are a lot of variables.

Re-read tvguy's last post. You don't go by the sticker price, you negotiate up from the invoice price. And know they get holdbacks, so they are making money. (They also may make money on a trade and your financing, so those deals should be negotiated separately from the cost of the car.)

Go in more toward the end of the month. Better yet, go in now, but hold firm that you're just looking right now, as they'll put the hard sell on you to buy NOW. Resist that. They'll probably call you toward the end of the month to re-negotiate, as they need to make sales quotas each month.

One thing I've found the last few times I've bought, also, is that dealerships that previously didn't give a crap how they treated the customer, are now under a LOT of pressure to get good ratings on customer surveys. They're in big trouble with the manufacturer if they're not "five star". I recently bought a car from a dealership I've walked out of before. They couldn't have been nicer. Oh, and they were quite concerned about how I'd answer the survey.

It sounds like you need to do more homework before you take this on.

 

[azdisneylover]

If you do purchase used, I would suggest to get certified used from a dealer. Like others have suggested, check online first. Many dealers will put deals online only to get people into the dealership. Good luck and I hope you find a car that you love for a great price soon.

 

[mrsboz]

Thanks for your help everybody. Yes this is totally foreign to me. I don't have a trade-in and I'm paying cash. I am now looking at the Toyota RAV4's. So am I to understand I am to ask them for the invoice?

 

[Pea-n-Me]

That's the thing, they don't always give you the invoice. You have to either figure it out, or go to a dealership that offers a "no hassle/certain amount over invoice" type pricing. Search around in your area. Sometimes dealerships work with your place of employment and such, too.

 

[Sadie22]

The invoice is not what the dealer pays for the car as the dealer gets additional money back from the manufacturer.

 

[xlxo]

I am now looking at the Toyota RAV4's

If you drive mainly in the city and often congestion (traffic lights). Seriously look at the new hybrid RAV if you are gentle on the gas pedal. Love my Prius. Why keep the engine running while the vehicle is stopped at a light? At low speeds.... a you can drive on the battery for a short distance in stop and go.

 

[Gumbo4x4]

Really depends on the vehicle. We got $6,135 off sticker on our Focus Summer of 2014 thanks to a deep discount AND $3,500 in rebates. That was about the going rate. My parents got roughly $3,200 off a MUCH more expensive Camry the same month. And in shopping around, that too seemed to be the going rate.

IIRC, the RAV4 just changed body styles, so discounts may be hard to find. Leftover 2015's (if you can find one) might be a better bargain.