Automotive

suggestion when dealing with dealer for used car

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  • Jun 3rd, 2021 9:44 am
[OP]
Newbie
Jan 26, 2019
49 posts
32 upvotes

suggestion when dealing with dealer for used car

was going to buy a 2018 Jeep Wrangler JK Unlimited Sahara from dealer. looking for some advice. I didn't have good experience to buy a car from dealer, always feel being ripped off.
37K mileage, the price is $38000+$385 Admin Fee. I like the simple pricing, no more hidden fee, just need to talk down the price to get a good deal, any tips to negotiate with those sneaky sales?
is there a place to check the roughly price for used car? ever went to the Canadian black book but at the end it asked my contact info and said a dealer would give me a quote. Kelly blue book price is for US market, don't know if I could use those price as reference in Canada.
31 replies
Banned
Feb 7, 2005
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Try auto trader for pricing .
<sig removed> by moderators . Yet no moderator told me they removed or why ?
Deal Addict
Jan 28, 2017
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Kelly blue book is available in Canada now. Never used it, so can't say how accurate their pricing is for Canadian vehicles.

If you're buying, refer to autotrader. Selling/trade will be more in-line with VMR Canada numbers.

I've noticed that with "no haggle" dealerships, they won't budge much on asking price. Again, need to check autotrader to see mileage, condition, days on market, vehicle history. Do your homework and don't be afraid to walk away if you aren't happy with the numbers.
[OP]
Newbie
Jan 26, 2019
49 posts
32 upvotes
thanks all for the suggestions. VMR Canada shows for this car, Wholesale $30975, Retail $34525. Would you think if It would be possible to negotiate the price close to wholesale price? the car is a lease return.
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Jul 12, 2003
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No one here can tell you rather you can nego a bit further or not. It is really up to the salesman of how firm he is on the price.
Just pay the price that you can comfortable with. If you are OK with $500 off, then take it.

If you only want to pay $36k, then offer $35k and see how it goes.
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Jan 28, 2017
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mortgageseeker wrote: thanks all for the suggestions. VMR Canada shows for this car, Wholesale $30975, Retail $34525. Would you think if It would be possible to negotiate the price close to wholesale price? the car is a lease return.
MP3_SKY wrote: No one here can tell you rather you can nego a bit further or not. It is really up to the salesman of how firm he is on the price.
Just pay the price that you can comfortable with. If you are OK with $500 off, then take it.

If you only want to pay $36k, then offer $35k and see how it goes.
Like @MP3_SKY said you need to figure out the max you are willing to spend (OTR) before hitting up dealers. Use the internet to research "market value". I put that in quotes because no one really knows, and there are lots of variables that will affect it one way or another. If you just blindly hit up local dealers and haggle on "what is your lowest price you can sell for" then your wasting everyones time and energy because you always think theres a better deal elsewhere, like you said in OP.

Not an expert on Wranglers, but they do have a cult like following and retain value fairly well from what I've read. You are basically asking if you can offer 20% off asking. Only you can determine if that is a fair price or not. And with used cars, highly recommend to do PPI with a mechanic, so factor that in too.
Deal Expert
Jan 15, 2006
18756 posts
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Richmond Hill
mortgageseeker wrote: thanks all for the suggestions. VMR Canada shows for this car, Wholesale $30975, Retail $34525. Would you think if It would be possible to negotiate the price close to wholesale price? the car is a lease return.
What makes you think you can buy this car at wholesale price from the dealer? Working to what retail should be is more realistic. It’s like trading in a car to the dealer and expecting retail pricing...
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Oct 6, 2010
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Used vehicle pricing is about $10,000 in profits for dealers. Esp on 3 year old lease returns. It's very very very unlikely that you'll get this anywhere near $35,000. I suspect you'll be in the $36800 range.
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Oct 24, 2018
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Doing homework on the value of a vehicle is a must, but also remember a dealership has to make money on the deal as well or they might as well not sell it to you as someone else will come along and buy it. Both parties have to be comfortable with the deal, but I totally get what the OP is saying that it often feels that dealers are trying to maximize profits rather than just make a profit. Used vehicle sales have much more margin built into the prices than the average new vehicle, dealers will negotiate but only to that point where it is better to just wait for someone else to buy it.

The key to negotiating a deal on a vehicle is being willing to walk away if you aren't happy with the terms. If someone decides a certain vehicle is the one they are going to buy then all the leverage shifts to the selling party. Decide what price you are willing to pay as a post above says, and if you can't negotiate to that price then walk away.
Deal Addict
Jan 28, 2017
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koffey wrote: Used vehicle pricing is about $10,000 in profits for dealers. Esp on 3 year old lease returns. It's very very very unlikely that you'll get this anywhere near $35,000. I suspect you'll be in the $36800 range.
Adding to above, you lookup the current 3-year residuals on Wranglers and add a 10-20% margin. Not very scientific but that will get you closer to realistic pricing. Also, FCA seems to offer huge "cash discounts" on new sales, so factor that into depreciation.
Member
Mar 31, 2009
325 posts
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You might want to check new price with incentives ...
For some models, it just does not make sense to buy two years used as the depreciation is minimal but you are still buying a used car with reduced original warranty, and (if required) usually much higher finance rates.
FCA products hardly fall in this category due to poor perceived reliability but it looks that Wrangler is an exception.
Deal Addict
Nov 12, 2004
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Hometown
IMO market pricing is just the latest way dealerships price fix their used inventory....

Negotiating tactics are the same regardless of the item.

KNOW what you want. Find it. Assess it's condition. Do not EVER slam the item totally but do point any flaws (this is important because no one wants to be accused of selling complete garbage, and if it really was total crap what the heck are you doing there trying to buy it?).

Mention similar product availability and lower prices. Decide your top price. Offer less so they can come back with a counter.

If they do not budge.

Walk.... Sometimes if you sense any hesitation as you are walking politely suggest they could have been counting the money from a sale. Instead of having to look at the vehicle day after day as it depreciates more...

Only look back or stop if they come out with the price lower than your maximum. Otherwise they will OWN you, the longer you are there the more time they have to work on you. They KNOW all the buttons to push. Good sales reps it is what they do, or they don't last...

Your only power is to LEAVE if they reject your offer. They totally believe that some sap is just seconds away from coming in and paying more than the sticker price by buying warranty this, ceramic coating that and undercoating...
[OP]
Newbie
Jan 26, 2019
49 posts
32 upvotes
EP32k2 wrote: What makes you think you can buy this car at wholesale price from the dealer? Working to what retail should be is more realistic. It’s like trading in a car to the dealer and expecting retail pricing...
I wouldn't think so usually, but with the pandemic last for 4 months, thinking it might be a good chance to get a really good price.
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May 18, 2002
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Brampton
mortgageseeker wrote: I wouldn't think so usually, but with the pandemic last for 4 months, thinking it might be a good chance to get a really good price.
Best deals on used cars were in April-May. The prices are climbing now.
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[OP]
Newbie
Jan 26, 2019
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prod wrote: Best deals on used cars were in April-May. The prices are climbing now.
that's new to me, could you please let me know a bit detail, why best deal on used cars were in April-May?
Deal Expert
Jan 15, 2006
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Richmond Hill
Most businesses are open again. Whereas in April and may everything was closed but dealerships were still trying to sell. Also don’t forget most stayed home and with job uncertainty...

So yeah you missed the boat and it’s not going to get any cheaper going forward. It’s like all those that believed the housing market was going to crash post Covid. How’s that going lol
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May 18, 2002
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mortgageseeker wrote: that's new to me, could you please let me know a bit detail, why best deal on used cars were in April-May?
The deals now will be on new cars that were still coming in during lockdown, still a fair amount of new 2019 around. Lots of 2020 and the 2021 are going to be coming soon.
At the other end there are some deals on semi-junkers that were traded in to dealers while the auctions were closed and had to be sold off the lot as is.
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Oct 6, 2010
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OP, I've tried to haggle with dealers using wholesale and it was futile. I've even done the math on the depreciation and still giving a hefty profit, couldn't get a vehicle even close for that price. You can really only judge the market by the pricing of similar vehicles and go from there. As mentioned, autotrader is a good resource. No dealer will give you vmrs pricing unfortunately. If you really want the best pricing, Quebec.
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Mar 7, 2007
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OP, you already got a reference mark, Retail $34,525

I'd question why the price for this vehicle is $38,385 . Does it have additional features / equipment? It is priced above average. I just searched the Trader. Several 2018 between $30 K - $35 K

Just keep shopping. The Jeep seems to be overpriced.
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