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I always thought that research was the best defense. I have purchased about 15 cars in the last ten years (don't ask, lets just say I have a car addiction that the only treatment is having a wife that will kill me before I buy another). I start out by looking at what my car is worth, both retail on the lot, retail private party and wholesale and trade in values. I come up with a price that I will accept for my trade, understanding that there are many ways the dealer will make money on the transaction. Next I have price compared the cars I have an interest in, prior to going to the lot. I find that the biggest mistake, especially with used cars is the buyer not knowing what the used car market is like. I go to the dealer prepared with a max price I will pay for the car, the lowest I will accept for the trade and MY own financing all set up. I have walked out of many deals, when dealers simply got greedy.
My brother in-law unfortunately went to buy without any of this information. they lowballed his trade. gave him (on paper) 3k for his grand cherokee then sold him a used Mountaineer for 20k blue book was 14k. then proceeded to soak him for all the extras. he paid no attention to price, only payment and walked out thinking that he got a great deal as his per month payment only went up by $45.00 per month.
I told him we should analyze his deal...he basically gave them his car for nothing by discounting the new purchase by 3k, so now he is paying 17k for the 14k NADA truck, which was most likely picked up at auction for about 7-8k. so I figured the dealer made about 13k of of his deal, (I saw his cherokee on the lot for 6500)this is not counting the dealer prep and all the extra crap he had them add on. the really sad part is that he does not get it! he told me after I told him all of this...yeah but I got a much better truck for only 45.00 more a month...I did not have the heart to tell him his new term was for six years and his old one was for 48 months.
this poor dim witted man is the reason that there are waaayy too many car dealers out there making a killing.
Spinny
currently driving 99 9-3 covt. 5sp SE, 26k miles and I only paid 17k for it. ( I sold my trade later after not getting the price I wanted)
posted by 165.127.12...
, Mon, 8 Dec 2003 18:30:47
, Mon, 8 Dec 2003 09:48:31
, Mon, 8 Dec 2003 09:31:17
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