Used Cars - What is the dealer markupÉ

JimmyHoJimmyHo
in Off Topic Lounge
I am currently looking to purchase a new Chrysler 300 (2012 +). I have been to a couple dealerships in the GTA and man, these guys won't budge on price. I mean I can talk a player into folding a full house on a paired board, but can't seem to get these guys to budge on price. Most of the cars I have been looking at are former rentals and they keep telling me that they are only making $500 - $1k on these cars. So they have no room to move on price. What is the point of having a sales force if you won't have any flexibility in asking price??

Anyone know what the markup is for a dealership for cars coming out of auction? How much does a dealer usually make on a $20k used car?

Comments

  • pkrfce9pkrfce9
    I'm telling ya 100%

    tapatalk puts this here to annoy YOU
  • trigstrigs
    pokerJAH wrote: »
    I am currently looking to purchase a new Chrysler 300 (2012 +). I have been to a couple dealerships in the GTA and man, these guys won't budge on price. I mean I can talk a player into folding a full house on a paired board, but can't seem to get these guys to budge on price. Most of the cars I have been looking at are former rentals and they keep telling me that they are only making $500 - $1k on these cars. So they have no room to move on price. What is the point of having a sales force if you won't have any flexibility in asking price??

    Anyone know what the markup is for a dealership for cars coming out of auction? How much does a dealer usually make on a $20k used car?

    i have an uncle who buys cars on auction and hooks me up at cost when i need one. in 2010 or 2011 (i can't remember) i bought a 2007 honda civic from him for around $10,000. not sure how much he resells them for though. also, it depends on how many cars he buys at one time. more cars means he can get a deal on the price obviously. my guess is they are making more than $1000 per car though.
  • JimmyHoJimmyHo
    trigs wrote: »
    i have an uncle who buys cars on auction and hooks me up at cost when i need one. in 2010 or 2011 (i can't remember) i bought a 2007 honda civic from him for around $10,000. not sure how much he resells them for though. also, it depends on how many cars he buys at one time. more cars means he can get a deal on the price obviously. my guess is they are making more than $1000 per car though.

    Thanks, so for a $20k used car that a dealership is selling from auction they are only making $1k? This seems a lot more reasonable than the $10k Pkrfce9 is suggesting. The used car manager told me they were only making about $2k on the car and they recently reduced the price by $1k so they had no wiggle room.

    I am speaking with someone tomorrow that is a sort of auction broker so he can get me a car directly from the auction that the dealers also bid at. The only problem is I don't think I can see the car before I buy it. I give him the specifics and he finds me a car that meets all of my wants. The car will still have two years of full warranty.
  • pkrfce9pkrfce9
    100℅ guaranteed
  • trigstrigs
    pokerJAH wrote: »
    Thanks, so for a $20k used car that a dealership is selling from auction they are only making $1k? This seems a lot more reasonable than the $10k Pkrfce9 is suggesting. The used car manager told me they were only making about $2k on the car and they recently reduced the price by $1k so they had no wiggle room.

    I am speaking with someone tomorrow that is a sort of auction broker so he can get me a car directly from the auction that the dealers also bid at. The only problem is I don't think I can see the car before I buy it. I give him the specifics and he finds me a car that meets all of my wants. The car will still have two years of full warranty.

    Yeah you can't see the car first but there's a good chance you'll eventually find one that fits your criteria. Good luck!
  • 800OVER800OVER
    Used cars usually have 1500 to $2000 markup but different dealers work with price differently. Most dealers buy cars for $3000-4000 below what they want to ask for it and then put in a grand of work. Then lot fees/overhead/blah/blah. If you walk in and want $1000 off you'll be in a pretty hard place unless they want to get rid of it. My suggestion would be to walk in to the dealer that has the car you want. Make an offer that makes you happy and offer a deposit of $500 if the price is right. If they don't take your offer then walk. If you do this at a few dealerships without success you know your price is out. Most dealers will be willing to deal if they know you want to do business right now. Make sure the car is what you want and in the condition you want. Include every promise the salesperson makes about condition (oh yeah we'll fix that) on the bill of sale (or at least in writing/email). Then make the offer.

    But having said all that....what do you want a 300 for???? ;-)
  • JimmyHoJimmyHo
    800OVER wrote: »
    But having said all that....what do you want a 300 for???? ;-)

    Thanks for the advice. I have driven a 300 for the last 8 years and really like the car. The gas sucks but I don't drive it much during the week (don't drive it during the daytime). My preference is the 300S which came out in 2012 if I can find one for the right price through the auction process.

    I found one broker that will get you the car at auction, you just need to provide them with a $500 deposit. When they bring the car in to their showroom, if you don't like it for any reason, it only cost you $100 to turn it down. Seems like a pretty good option.
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