How much is the mark-up on list price for certified pre-owned from dealer?

[mintchoco]

I'm looking to buy a certified pre-owned vehicle from the dealer. I'm assuming these are all off-lease vehicles that have been re-conditioned.

What's the usual mark-up on the list price for these vehicles and how much haggle room would I have. I've bought new before and used CCC reports to get a price, but how do I figure out a good price for the used vehicle? Most tools online are using USD.

Specifically I am probably looking at 2008-2009 Toyota Siennas.

Thanks!

[poedua]

I'm looking to buy a certified pre-owned vehicle from the dealer. I'm assuming these are all off-lease vehicles that have been re-conditioned.

What's the usual mark-up on the list price for these vehicles and how much haggle room would I have. I've bought new before and used CCC reports to get a price, but how do I figure out a good price for the used vehicle? Most tools online are using USD.

Specifically I am probably looking at 2008-2009 Toyota Siennas.

Thanks!

While it's not always the case, a good starting point is to assume ' roughly ' somewhere around $2,000 dealer profit for every $10,000 in asking price from CPO dealers that will haggle.

About 10% off asking price of a CPO used car is generally deemed to be pretty good...personally, I'd shoot for something like that ( 10% off ) as your ' ideal ' final price.

[spike1128]

While it's not always the case, a good starting point is to assume ' roughly ' somewhere around $2,000 dealer profit for every $10,000 in asking price from CPO dealers that will haggle.

Meaning much higher than of you were to buy a new car!

[poedua]

Meaning much higher than of you were to buy a new car!

+1

The hefty margins in CPO used cars are obscene.;)

[RCGA]

So basically, a good deal would be to try and make the CPO price the on-the-road price?

[mintchoco]

While it's not always the case, a good starting point is to assume ' roughly ' somewhere around $2,000 dealer profit for every $10,000 in asking price from CPO dealers that will haggle.

About 10% off asking price of a CPO used car is generally deemed to be pretty good...personally, I'd shoot for something like that ( 10% off ) as your ' ideal ' final price.

Does that mean some CPO dealers won't haggle at all?

[jasonkwan86]

Does that mean some CPO dealers won't haggle at all?

It all depends on the vehicle itself. Some cars there is more markup than others. Some none at all, some even are sold at significant losses. It all depends on what your looking at.

[mintchoco]

E.g. If I am buying a Toyota, is it better to buy from a Toyota Dealer vs. say if I find the vehicle at a Honda dealer or some other dealership?

[jasonkwan86]

E.g. If I am buying a Toyota, is it better to buy from a Toyota Dealer vs. say if I find the vehicle at a Honda dealer or some other dealership?

In order to get the right CPO, you would have to find it at a Toyota dealership. Honda wouldn't be able to offer the right CPO for a Toyota.

[poedua]

Does that mean some CPO dealers won't haggle at all?

All CPO dealers will haggle...after all, they're the one's with the most inflated mark-ups.;)

[poedua]

So basically, a good deal would be to try and make the CPO price the on-the-road price?

I think a ' good deal ' would be the CPO asking price less 10% or so...IMHO.

[zyphere]

Although I have encountered some CPOs that claim to have a no-bargaining policy. I thought they were BSing and went in there to try it out and they were pretty firm on that, I was quite surprised. So I walked out and left lol.

[mintchoco]

What canadian tools/websites do I have for guaging the fair price for a used vehicle???

[coriolis]

Canadian Black Book (http://tradein.canadianblackbook.com/tradein/java/entry?token=VmnX7Ow%2BJQ0%2BU2XuVK1tkYYn16PEDZcEI6 2Wq3KwPFo%3D&siteLanguage=en)

VMR Canada (http://www.vmrcanada.com/)


Also could use the classifieds to search for similar vehicles with mileage, trim, etc.

[poedua]

What canadian tools/websites do I have for guaging the fair price for a used vehicle???

Here's a general and generic approach I have used.

It's best to formulate a used car value based on a number of resources, such as........



1) Check AutoTrader website for dealer advertised prices

2) Check the Carpages website also, they have dealer advertised prices as well

3) Check Canadian Red Book Values for retail / cash value prices in the GTA - CAA can give those to you.

4) Ckeck the Vehicle Market Research International (VMR) website for wholesale and retail values.

5) Check the Canadian Black Book website for trade-in and average selling price values ( it's on CAA's site as well ).

6) Try and find someone who has access wholesale auction data from Manheim - you want to see data from the MMR ( Manheim Market Report )

7) Check Kijiji for private listings.


....utilize all 7 of those resources and you should have a better than average chance of coming up with a valid value for a used car.

[Lexcyn]

Although I have encountered some CPOs that claim to have a no-bargaining policy. I thought they were BSing and went in there to try it out and they were pretty firm on that, I was quite surprised. So I walked out and left lol.
Indeed, our local Honda dealer refuses to haggle on CPO vehicles because all of their cars are "priced to sell" apparently. :facepalm:

[macnut]

Although I have encountered some CPOs that claim to have a no-bargaining policy. I thought they were BSing and went in there to try it out and they were pretty firm on that, I was quite surprised. So I walked out and left lol.

If you look at the CPO concept through the dealership's eyes, you can understand their reluctance to haggle.

Whether it's an ex-lease, trade-in or auction acquisition, they have spent some extra money to convince themselves that it deserves a premium price.

Not just the supposedly rigorous checks (which admittedly may not be that complete in all cases), but they are putting their neck on the line for the manufacturer who backs the program.

If the dealer sells a CPO that doesn't work out well, or they don't make enough on it to cover contingencies, it's bad news all round.

That is, they have shared a lot of the used car buying risk with the eventual purchaser. Can't really quantify that, but the purchaser is buying a fairly good manufacturer-backed warranty in the bargain.

Not perfect, but better that most any 3rd. part aftermarket warranty.

The point is if they haggle CPOs just like regular used cars, where does it stop before the lure of a CPO loses its lustre?

If they offer you $1K off, you are most likely going to counter with something like $3K off hoping to end up in the middle. That's regular used car territory.

This is how they see their cost-benefit of a CPO program:
http://www.autosphere.ca/autojournal/2012/04/27/certified-pre-owned-seeing-beyond-a-cpo-sale/

[Rainne]

Indeed, our local Honda dealer refuses to haggle on CPO vehicles because all of their cars are "priced to sell" apparently. :facepalm:

Um.

Maybe they are priced to sell?

Should they mark it up by another 10% and then give you 10% off so you feel better?

[forthewinwin]

It depends on the vehicle.. But it seems to be about 10-20%, but I've seen my local Toyota dealership ask 15900$ for a year 2004 Celica GT-S with 108k km mileage, perfect body condition.

[XtremeModder]

OP I'm guessing you could knock off about $1000-$1500 depending on the dealer and sales person.

I just bought a civic last week at Pickering Honda. It's a 2010 civic ex-l 5spd and a month ago when they listed it they listed at $18,999 and they said they could only do $20,000 taxes and everything included, almost a month later they dropped it over time down to $15,995 and I got it for $15,000

[RCGA]

If you look at the CPO concept through the dealership's eyes, you can understand their reluctance to haggle.


Maybe, but I've found with many CPOs, that you might as well buy the car new, especially after you consider incentives, newer model, higher resale value, low (0) KMs, longer warranty, etc. etc.

[zyphere]

Um.

Maybe they are priced to sell?

Should they mark it up by another 10% and then give you 10% off so you feel better?

Not always. In my case, the prices WERE inflated. The car was off-lease from a company lease -- you can tell this because they had multiple identical cars (same trim, configuration, year, colour, similar mileage) on the lot. They were asking close to $16K.
I then checked another dealer representing the same manufacturer that also had the exact same cars, and also company leases (again, multiple identical cars), and they were only asking $14K.

The first dealer was the one with the no-bargain policy. The second dealer was willing to budge slightly even. It's hard to imagine that the first dealer could have done anything to make the car worth $2K more.

[poedua]

If you look at the CPO concept through the dealership's eyes, you can understand their reluctance to haggle.

Correct....it's called ...GREED !;)


Whether it's an ex-lease, trade-in or auction acquisition, they have spent some extra money to convince themselves that it deserves a premium price.

Not just the supposedly rigorous checks (which admittedly may not be that complete in all cases), but they are putting their neck on the line for the manufacturer who backs the program.

Correct...they may have spent some extra money...but usually not so much as to justify the obscene mark-ups they want.

And as far as " supposedly rigorous checks " go, their inspections are no different than a robust pre-purchase inspection you'd get from a competent shop ....might only cost $125 for a 150 point inspection.

[poedua]

OP I'm guessing you could knock off about $1000-$1500 depending on the dealer and sales person.

I just bought a civic last week at Pickering Honda. It's a 2010 civic ex-l 5spd and a month ago when they listed it they listed at $18,999 and they said they could only do $20,000 taxes and everything included, almost a month later they dropped it over time down to $15,995 and I got it for $15,000

There you go.........


- listed for $19,000
- sold for $15,000

....the rough guideline of ' $2,000 dealer profit for every $10,000 in asking price ' I noted earlier would still seem to hold.;)

Well done btw !! :)