Automotive

How much play is there in used car pricing?

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  • Aug 14th, 2015 9:23 am
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Deal Addict
Mar 12, 2008
1655 posts
209 upvotes
Toronto

How much play is there in used car pricing?

I am trying to determine what is a reasonable offer on some used suv's I've been looking at .

I am wondering if there is a % at play or is it purely based on the price of the vehicle. I expect a 10k car has less room to negotiate then a 30k car.

Would you think if a used car is listed at 28,000 an acceptable offer would be 28,000 all in (aka wave the tax/ "fees") ?
15 replies
Deal Guru
May 29, 2006
10930 posts
3663 upvotes
theres a lot of play in my past experience, we bought a used truck that was listed for 23,000, we offered 20k, they countered at 21500, we said 20k, they said no, we got up to walk out, and before I got 10 feet from the desk they agreed to 20k.

this was from a ford dealership.
Deal Expert
User avatar
Jul 5, 2004
27438 posts
6807 upvotes
It all depends what they paid for the vehicle. There's really no way to know for sure. If you think $28,000 is a fair price, then offer it to them, including all taxes and fees and see what they say.
Deal Fanatic
Jun 26, 2009
5429 posts
5285 upvotes
GTA
rocking23nf wrote: theres a lot of play in my past experience, we bought a used truck that was listed for 23,000, we offered 20k, they countered at 21500, we said 20k, they said no, we got up to walk out, and before I got 10 feet from the desk they agreed to 20k.

this was from a ford dealership.
So they were asking $23,00 plus tax, and you got it for 20K all in, on the road? That's a big discount. Please post taxes and fees, every dollar counts. You can say - got it for 20, but after tax and some BS fees it can go up to around $23000.
Deal Guru
May 29, 2006
10930 posts
3663 upvotes
Tommy74 wrote: So they were asking $23,00 plus tax, and you got it for 20K all in, on the road? That's a big discount. Please post taxes and fees, every dollar counts. You can say - got it for 20, but after tax and some BS fees it can go up to around $23000.
we paid 20k all in, im sure they bought the truck for like 15-18K or something, maybe I just showed up at a time when they were desperate for sales. im in AB also, so GST is only 5%
Deal Addict
Sep 27, 2009
1853 posts
319 upvotes
Oakville, ON
My rule of thumb is the lowest a private seller will go down is 15% so 7.5% would be average.

For a dealer 5% and 2.5%.
Deal Addict
Sep 27, 2009
1853 posts
319 upvotes
Oakville, ON
Well I'm talking about Toyota Corollas, Honda Civics, etc, not some 1964 Rolls Royce where they only made twenty of them.
Temp. Banned
Jun 18, 2008
5095 posts
4664 upvotes
Montreal
Guncho wrote: My rule of thumb is the lowest a private seller will go down is 15% so 7.5% would be average.

For a dealer 5% and 2.5%.
You can not apply a 'rule of thumb' to used cars since each and every one is different and no 2 cars are exactly alike. I recently sold my summer car, seller got a 0% discount and paid 100% of my asking price which was already a good 20% higher than the most expensive one on the used market.
Deal Addict
Sep 27, 2009
1853 posts
319 upvotes
Oakville, ON
That's right every used car is its own unique snowflake and even though there are hundreds of thousands of used cars sold every day there is no commonality, or pattern whatsoever.
Deal Addict
Dec 19, 2013
1274 posts
258 upvotes
North Vancouver
It also depends on the condition. A lot of times, low mileage cars have no discounts at all especially if the car is desirable. I have seen times where a bidding war gets started and the final seller ended up buying 20% over listing price.
Deal Fanatic
Dec 6, 2006
5805 posts
1972 upvotes
Toronto
Guncho wrote: That's right every used car is its own unique snowflake and even though there are hundreds of thousands of used cars sold every day there is no commonality, or pattern whatsoever.
More like a unique pile of poop.

Anyway we bought 2 used cars.
First one Mazda 55000km, 4-5 years old model, don't think we got any discount off listed price at all... maybe rounded off some dollars or tens
Second one Kia, 70000km, 3 years old model, bargained off abit over $1000 after tax after we showed the salesman another ad of a similar vehicle from another dealer way way far away for $2000 cheaper. But our car has alot of misc accessories and tints installed. To be honest I feel we could perhaps do better... it being Kia, not Honda/Toyota, and the assumption that the other dealer ad can probably be bargained too. But who knows....
Deal Fanatic
User avatar
Oct 24, 2005
5218 posts
1240 upvotes
Burlington
Recently purchased a used car that was listed at $24,989+$200 random fee+HST....managed to negotiate down to $22,750+$0fee+HST.

The key in getting this was driving around from dealer to dealer that had similar cars until 1 would bite. Some were firm, some were willing to negotiate a bit, until I found one that was ready to make a quick sale. Don't fall in love with the first car you see on the lot and good luck.
Member
Feb 4, 2015
215 posts
106 upvotes
York, ON
From a dealer, too many variables to mention. Just go in with what you think is fair (by that I mean have justifications for your offer; come armed with evidence of market value, find faults with the car to warrant a reduction).

From a private party, pay attention to the asking price. When I sell a car, I always inflate a little over what I want in the expectation of being haggled down.
For example, if you see a car for $3900, I would guess the seller wants to see $3500. If $21,500, then $20,000 is likely the seller's expectation.
Jr. Member
Jan 30, 2013
185 posts
74 upvotes
Guncho wrote: Well I'm talking about Toyota Corollas, Honda Civics, etc, not some 1964 Rolls Royce where they only made twenty of them.
Used Corollas and Civics are actually in high demand. If you were talking about old Sentras and Elantras, then it would be different.

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