Remember to deduct the price range from the very good conditon trade in value, this will give you the true value the dealer paid for the car when he took in it trade.
Example $10k retail
$8k trade in value
Subtract the price range or number spread, which is $10k - $8k = $2k (range or number spread).
Now take the $8k trade in value minus the $2k price range and it equals to $6k actual dealer wholesale cost.
In this example the dealer paid $6K for the car a fair offer would be $6,500 -$7000
Another thing to remember is that dealers do at time of resale is detail the car, steam clean the engine bay, change the oil and apply tire black or dressing to the wheels, check engine for errors etc. and a safety check.They do as little as possible and try and sell you on their BS 500 point certified used car detailing and certifying. That they will tell you costs them around $2k per used car. Most dealers are not fools and will fix anything that is really badly worn or dangerous.
I remember going with a friend to a mazda dealer that was selling 80's rx7, one of these 500 point certified cars and it had dents all over it, tires were dry rotted , interior faded and they had the balls to try an charge my friend $2000 over retail for this POS.
I had to physically drag my friend out of there as he was in love with the car and bought the dealers BS.
I was shocked to find out a few days later that he actually went down the next day with his parents and bought the car. Needless to say with in the next 6 months he needed new tires, complete exhaust system and a completley new clutch assembly, even the slave unit.
So it is true that a SUCKER IS BORN EVERY SECOND, look at a car dealership, when you drive up, all the salesman waiting like packs of lions to eat you. And even when you sign the deal, you have the dealers finance manager trying to sell you extended waranties, paint treatments , alarms and even undercoating in some states.
Last edited by gsxr750; 01-25-2012 at 03:33 PM.
|