Used Car shopping in this market - some input needed

sommerrayne

So we've been balls to the wall looking for a van for the past 2 months. It seems that the following senario happens everytime and I guess I need some outside input.

We find a van we are good with (but has been on the lot's inventory for over 90 days - so it's not like its a new vehicle on the lot), they are asking 11K and we offer 11K out the door (which is really just 1K less than what they're asking when you take out tax, title, and license). They get ultra offended and tell us to bolt. We leave, they continue to market it for multiple weeks/months for the same price (11K) without altering but refuse to budge 1K.

I'm confused because of the following things:

A) Opportunity cost on cash-in-hand for them is worth the 1K adjustement.
Its the end of the year (and yes, I get that they work on fiscal years but...) and you'd think they'd want to absolve their debt
C) NO ONE pays full ticket retail on any cars - 1K isn't a huge hit.
D) In this market, to have a buyer come in with cash in hand and not have to d!ck around with financing, down payments, etc seems like it would be appealing to me.

So either I'm out of touch with reality or these dealers (multiple) are out of touch with reality and the current market (and the impending inflation bubble).

Thoughts?

ela81

I have no idea, that is sooooo weird. I don't get it at all. We never pay sticker (or anything close).

Good luck!

mmttc

I think dealers get some kind of kickback when you finance through them. Every time I've bought a car I've come in with my own financing and they have nagged me until I financed with them. They always beat my credit union % so it's a better deal for me. Maybe don't mention the cash payment until the deal has been negotiated and you are in the sales office signing off. Of course, with cash on hand I would imagine you would get a much better deal buying from a private party seller. Just something to think about.

firsttogo

I don't get it either. We just got a van this week, and told them our absolute top number, and had to get out of there with tax title, doc fees ect. They had to come down about 890 to meet us. They did. They wanted the thing off the lot, so they made it happen. They can do it, and I am not sure why they are not working with you.

That sounds like a load if you ask me. I am sorry this is such an unpleasant experience for you .  Car shopping blows in general though. I seriously sent DH out with my dad this week, and said "bring home a van" I don't care what it is.. just get it done.  I hate it that much.

browneyedgrl4282

They get more money if you finance through them! I have purchased 2 cars for cash. I never mentioned it until we signing papers because when i told them i was paying 25K without a loan they got all wierded out. I finally found from a friend who is a manager in financing dept at a large dealership around here is that the banks they use will give them some sort of incentives to pressure people into using who they want!

When i purchased my van the guy looked at me and said how do you have 25K to put out to buy car when you are what 19? did you rob a bank. I looked at him said No I am 26 and it's called being SMART

*Willis*

In addition to not mentioning the cash payment, it may simply be that the dealerships has too much in the van to take 1k off. I imagine that the profit margin on a used car around that price is fairly small. You can typically negotiate more off of a new car because of the wiggle room and manufacturer rebates. They may be willing to leave it on the lot koror longer to get their money out.

TakYelgif

My only thought is that they get kickbacks from the financing companies towards the end of the year, for the Holiday shoppers.

Otherwise they are Idiots in my book! 

dana316

Maybe if you phrased it differently? 

Offer them 10k in cash...and then let them add on all the taxes and doc fees or whatever...you'll still be under or right at 11k after all the extras.

Also, at least here, small car dealerships have tighter margins than large dealerships.  Maybe go a large dealership and see what happens?

 

 

browneyedgrl4282

I forgot to mention I traded in a truck once and they told me they would give me 10K for it, I said no because I knew damn well it was worth a lot more. Finally got them to give me 14K for after they realized it is still under warranty and like brand new with low mileage. Those jacka$$e$ put it on the lot for 21K, I am pretty sure they made a profit off it. So there is room for them to play