Starting Score: 680
UpNComing wrote:
MsTucker09 wrote:so is there anyway to know how much a dealer actually paid for a car and where to negotiate?
Again too many variables. Find out what book the dealer uses to value their used cars. Figure about $1000 over that for reconditioning and "pack" (a fixed dollar amount that a dealer will add to a used vehicle to cover incidentals such as repairing a vehicle that does not pass state inspection). Then assume any dealer will want to make $1500 to $2000 profit on a used vehicle and you have your ball park number.
how would you compute that for a new car
Starting Score: EQ 462 9/30/11
Staley698 wrote:The trade would be a 2008 Mitsubishi Lancer GTS w/ just about 92k miles. It has the Sun & Sound package that includes: sunroof, navigation, bluetooth, upgraded stereo w/subwoofer. I'm located in South Jersey/Philly metro area. Thanks for your input on all of this
Straight book value (galves) on your trade is $6400 minus any damage, tires if needed and mechanical condition. If your car is in great shape that $7100 isn't far off the mark.
Hello! My husband and I just paid off our Ch 13 bankruptcy. We are waiting on our discharge papers and was hoping to get a newer vehicle. As of yesterday my scores were Tran 689 and Eq 664, my husbands were around the same... Was wondering if you think we will have problems getting a vehicle??? Honestly we are looking at 2008 Chevy Tahoes with lower mileage.... We have had auto loans in the past and they were all paid on time with not even one late....We will have a small trade 2001 Durango with high miles and be able to put a lil money down if we had to....Thank you for your help!
UpNComing wrote:
Staley698 wrote:Question for UpNComing:
I'm just about ready to hop in the market for a new car. While searching around, I came a cross a site that reccomended this formula for making an offer:
Dealer Invoice Price - Dealer Holdback + 5% = My Offer (Destination, taxes, title/tag, etc. would then be added on to that selling price) The 5% is evidently there as a profit for the dealer.
For a car that has just been released and is considered "hot", do you think any dealers would bite on that offer? Considering many more people will come in and most likely pay MSRP just to have the latest and greatest.
I am also considering trading in - the car is a 2008 and is mecahnically perfect, but it is very high mileage (almost 92k on the clock) and needs some cosmetic work for a few hail dings and a dent in the hood (no paint damage). KBB tells me about $7,100 - I'm going to take that number with a large grain of salt. What would a more realistic number be? It's equipped with navigation, bluetooth and other tech geek goodies as well. Thanks!
Unfortunately there is no one size fits all formula that you can use when it comes to calculating dealer holdback. Some have up to five percent. Most have two percent. That three percent could represent over a thousand dollars in non-existent profit. Most dealers would be willing to negotiate their holdback to a savvy but reasonable buyer, so don't look for a dealer to give up everything unless it is a lower demand or extremely high production vehicle or if there are other ways they can profit, such as financing. However, when it comes to a sellers market car you can pretty much through all that out the window. If you're looking to steal a high demand car you're better off waiting until the market cools on it.
As for your trade I need more info to give you an accurate reading on what you should expect on a trade value. Such as make, model, trim level, equipment and your location.
Isn't it true that VW's don't have holdback? I remember when I sold them years ago we always told customer that VW doesn't have holdback and invoice was the cost of the vechicle. We also sold Mitsubishi's and acknoledged that they have holdback.
lilrosy4 wrote:Hello! My husband and I just paid off our Ch 13 bankruptcy. We are waiting on our discharge papers and was hoping to get a newer vehicle. As of yesterday my scores were Tran 689 and Eq 664, my husbands were around the same... Was wondering if you think we will have problems getting a vehicle??? Honestly we are looking at 2008 Chevy Tahoes with lower mileage.... We have had auto loans in the past and they were all paid on time with not even one late....We will have a small trade 2001 Durango with high miles and be able to put a lil money down if we had to....Thank you for your help!
As long as you have no negatives after your BK is discharged there are banks that will finance you now. Expect to pay a high interest rate however.
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