Automotive

Used Honda - What to Offer?

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  • Jun 7th, 2013 11:55 am
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[OP]
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Aug 25, 2007
1060 posts
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Bolton, ON

Used Honda - What to Offer?

2012 Honda Pilot EX-L, 27K on the odometer on a Honda lot. Has ext. warranty and a clean CarProof. Never bought a used vehicle before so what should my starting offer be? Current asking price is $36,500. VMR has the wholesale amount at 27K and Black Book low value is 31K to 33.9K for the high value. It was traded in on another Honda.
13 replies
Deal Fanatic
Oct 7, 2010
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Depends on the mileage and condition bud. I think easily, you can negotiate 4k down from there. Not sure if you can get more.
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Nov 10, 2012
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Would start at 30 +tax and work your way up. Stay stern when the dealership says that they're not making money, losing money, blah blah blah.

Go on autotrader, find similar cars with same mileage and trim. Print those out, especially the ones less than the cost of this honda. Then when you go shopping you can say
, well, these cars are the same trim ad mileage guess I'll go and see them if you don't want to come down on the price and beat it.

Worst comes to worst, you walk away and they call you again within a week begging for you to come back. Lol. Every time
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May 8, 2005
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You can certainly start off by asking for 30 +tax as JIm321 suggested, but you won't likely get it. I'd say a final deal of something like 10% or so off is probably more a realistic & reasonable expectation. So, somewhere around $32,500 - $33,500 perhaps ?

And I say 10%, because 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. This can vary of course, depending on what reconditioning a dealer may have had to do ( i.e new tires, brakes, detailing, extended warranty etc. ). And on that note, a reputable dealer with an ' open book ' policy would usually show you exactly every dollar they put into a used vehicle to ready it for sale - i.e what their total ' cost ' is on the vehicle. Or, in keeping with the ' open book ' policy I cited above, another approach is to tell them you'll offer then $1,500 ( profit ) above their total ' cost ' on the vehicle ( $1,500 is a common minimum profit many CPO dealers shoot for ).

Unfortunately, all such generic approaches / guidelines for making offers may be moot, as a lot of your ability to shave the price down will depend on the supply & demand for the vehicle as much as anything else.

But Jim321 is right - first and foremost, do your homework on pricing before negotiating. You need to have a good handle on ' market value ' going in to negotiations - and that's simply a case of reviewing Autotrader, & Carpages listings - i.e I've seen some vehicles listed for around $30,000 on Autotrader with virtually the exact same specs vary by as much as $3,000 on asking price...so when you see a ' low ' price on this site, print the listing out as a potential negotiating tool.
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Jul 30, 2007
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2013 brand new is $43,250 - $4,000 current June incentive = $39,250 + freight/pdi and say you negotiated another 5% off the list = $39,000. If the dealer wants $36,500 for the car, then it's no brainer that for an extra $2,500, I would enjoy a brand new car with full 3 yr warranty.

If I was to make an offer for the 2012, considering it's becoming a 2 model year vehicle, $30K would be my max + taxes.
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booblehead wrote:
Jun 6th, 2013 7:19 am
2013 brand new is $43,250 - $4,000 current June incentive = $39,250 + freight/pdi and say you negotiated another 5% off the list = $39,000. If the dealer wants $36,500 for the car, then it's no brainer that for an extra $2,500, I would enjoy a brand new car with full 3 yr warranty.

If I was to make an offer for the 2012, considering it's becoming a 2 model year vehicle, $30K would be my max + taxes.
Excellent point.

Some used vehicles simply don't depreciate as quickly as other cars, and as a result, command a higher resale value - i.e some Hondas ( as in this case ), Toyotas, Subarus, Mini's - and may not be the best value proposition in terms of a used car buy. When you compare the hefty premium prices being asked for a used 1 - 3 year old Honda, Toyota, etc. compared to an identical brand new Honda, Toyota, the aggressive promotions and rebates / discounts / financing offered by new car dealers may make the brand new Honda, Toyota the much smarter and the ' better value ' buy.

So, you're spot on........always double check ' New Car ' pricing as part of your homework / analysis of a potential late model used car purchase you make be considering.
" The placebo effect is the most powerful supplement of all "
" The pain of discipline weighs ounces, the pain of neglect weighs tons "
" The best training in the world can't overcome a lousy diet "
TRAIN HARD !!!!
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another thing I like to add, typically, big size SUV resale value is not as good as your typical small to mid size vehicle. Therefore, be prepared to walk after making an offer and do not be pressured by your sales guy. I suggest you do not get into prolong back & forth price negotiation.

I can see the dealer is valuing/asking the price as a 1 year old vehicle with about 15% depreciated value reflected on the asking price. I would value the vehicle as 2 year old with about 30% depreciated which calculates to approx. $30,000, hence that's my figure provided from earlier post.
[OP]
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Aug 25, 2007
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Bolton, ON
The used one seems to be a little better value to me over a comparable new one since it has the extended warranty plus a better finance rate. If I take the $4,000 cash available on the 2013, I can't use their financing though I haven't inquired what the non-Honda financed rate is. If I do the used 2012, I get an extra year and 20,000 extra KM powertrain warranty plus a better finance rate than I am able to secure from my line of credit. Assuming I can get a 2013 for cost + $500 and taking into account the $4,000 back for a cash purchase, the difference could be and around $5,000 saved if I can negotiate the 2012 to about 10% off their asking price, not including any additional savings from the cheaper finance rate.
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BradT wrote:
Jun 6th, 2013 11:25 am
The used one seems to be a little better value to me over a comparable new one since it has the extended warranty - I get an extra year and 20,000 extra KM powertrain warranty - plus a better finance rate.


The Pilot is rock solid in terms of reliability - so, you won't get the benefit out of any extended warranty IMO....especially on something as feeble as only an extra year and 20,000 extra KM powertrain warranty .
BradT wrote:
Jun 6th, 2013 11:25 am
If I take the $4,000 cash available on the 2013, I can't use their financing though I haven't inquired what the non-Honda financed rate is. If I do the used 2012, I get an extra year and 20,000 extra KM powertrain warranty plus a better finance rate than I am able to secure from my line of credit. Assuming I can get a 2013 for cost + $500 and taking into account the $4,000 back for a cash purchase, the difference could be and around $5,000 saved if I can negotiate the 2012 to about 10% off their asking price, not including any additional savings from the cheaper finance rate.
Then, I'd give the 2013 a stronger look.
" The placebo effect is the most powerful supplement of all "
" The pain of discipline weighs ounces, the pain of neglect weighs tons "
" The best training in the world can't overcome a lousy diet "
TRAIN HARD !!!!
[OP]
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Aug 25, 2007
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Thanks for the replies. I checked with a Honda dealership, and the rates from them on a unit where the 4K cash is used is the same as on the used one.
Newbie
Jul 20, 2009
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Haldimand motors has a 2011 HONDA PILOT EX 4X4 w/ 99300km for $26,895. You can try to extrapolate from there what the 2012 is worth. I Actually think that the 2011 is a good deal. The Pilots are solid dependable rides. I'd rather save 10K and get the 2011.
[OP]
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Aug 25, 2007
1060 posts
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Bolton, ON
Now, final question on this one. How do I negotiate via email? Submit my on the road price for the vehicle and see if it is accepted and leave my trade out of it or give the price on the road less what I want for my trade so it is a smaller number I am giving them? I just don't have time to go into the dealership and sit and negotiate my price. Sorry if my question doesn't make sense, I haven't gotten through my first coffee yet. :)
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Jul 30, 2007
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In the past, I had done similar thing. I specifically mentioned I was a serious buyer and intended to purchase the vehicle with this OTR $. I had no intention of going back & forth and if your dealership can meet my $, then I will call in with the credit info. and the paperworks can be done in a day or two time.
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BradT wrote:
Jun 7th, 2013 8:19 am
Now, final question on this one. How do I negotiate via email? Submit my on the road price for the vehicle and see if it is accepted and leave my trade out of it or give the price on the road less what I want for my trade so it is a smaller number I am giving them? I just don't have time to go into the dealership and sit and negotiate my price. Sorry if my question doesn't make sense, I haven't gotten through my first coffee yet. :)
What's the make, model / year and kms of your trade-in ?
" The placebo effect is the most powerful supplement of all "
" The pain of discipline weighs ounces, the pain of neglect weighs tons "
" The best training in the world can't overcome a lousy diet "
TRAIN HARD !!!!
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