Used car haggling help

Anonymous · ‎10-01-2015

I found a 2013 Lexus GS 350 in a small town dealership not too far from me and it's listed at a fair price. It looks to be in very good condition and has average to low mileage. They're asking 32K which is the lowest price around. (Most places are asking $3K or so.) Of course I'd like to get it for even less because hey it's a car dealership and they've obviously marked it up a bit. 29K is my sweet spot. 30K is my max. Any tips on how to negotiate a car price when it's already below KBB and TMV?

KBB: Trade in - $33483, Private - $30099, Dealer - $35771

Edmunds TMV: Trade In - $27289, Private - $29776, Dealer - $31817

My plan is to offer them $28K, but first asking what they're willing to do for me. I won't be able to show them that I can find the car cheaper elsewhere so I'm not feeling solid. I'd love to get some advice from people who are experienced. This will be my first time negotiating for a car. I'm a woman going alone so I know I'm a big target. The good news is I don't need a car today or even this month.

Update: Just checked the Carfax and discovered an accident in 2013. When I asked the salesman via email he said no crash to his knowledge. Dealer purchased from auction. I was planning, of course, to take car to a mechanic for inspection.

Dj4Money · ‎10-01-2015

@Anonymous wrote:
I found a 2013 Lexus GS 350 in a small town dealership not too far from me and it's listed at a fair price. It looks to be in very good condition and has average to low mileage. They're asking 32K which is the lowest price around. (Most places are asking $3K or so.) Of course I'd like to get it for even less because hey it's a car dealership and they've obviously marked it up a bit. 29K is my sweet spot. 30K is my max. Any tips on how to negotiate a car price when it's already below KBB and TMV?
KBB: Trade in - $33483, Private - $30099, Dealer - $35771
Edmunds TMV: Trade In - $27289, Private - $29776, Dealer - $31817

My plan is to offer them $28K, but first asking what they're willing to do for me. I won't be able to show them that I can find the car cheaper elsewhere so I'm not feeling solid. I'd love to get some advice from people who are experienced. This will be my first time negotiating for a car. I'm a woman going alone so I know I'm a big target. The good news is I don't need a car today or even this month.

Update: Just checked the Carfax and discovered an accident in 2013. When I asked the salesman via email he said no crash to his knowledge. Dealer purchased from auction. I was planning, of course, to take car to a mechanic for inspection.

What sort of interest rate is your bank/lender offering you?

You can get excellent deals on new '15 ES 350, Chrysler 300 and Buick LaCrosse. You just looking to save a few pennies or what?

Anonymous · ‎10-02-2015

First of all being a woman myself I understand the target feeling. Look around, is this vehicle priced pretty close at other dealerships in your area for its' mileage and condition? Check out other sources. Honestly KBB is a great guide but don't expect to go much below that. KBB also runs a bit high dealers use what is called Black Book value which can fluctuate quite a bit from KBB especially. This is all in my experience of course and it never hurts to try to get a better price. All they can say is no. Also milage matters on price quite a bit, I have seen that car from 30k with about 45k miles to 38k with 9k miles. In my area mind you. Big difference in price although an extreme difference in miles I would guess you are talking around 30-35k miles maybe even a little less. 12k a year is a good estimate for average mileage. Good luck with your purchase it is a great looking car with good reviews. Also you didn't mention your credit history or anything and sometimes if you are in a better position with your file and income, you have a little pull where as if you barely qualify for a loan don't expect any favors. As everyone on here says secure your financing first at a CU or something and then just go shopping. Also read some threads on common upsell tactics and things you may or may need that they will try and tack on at finance time. Some banks will not finance a used car without a warranty. That car is pretty new though so that may not be an issue. Just things to keep in mind. Other who have more experience will chime as well I used to sell cars and I buy a ton of them too!

Edit: That carfax could be anything from a minor scratch to major structural damage there is hardly any way to tell without someone knowledgeable looking at it. Also if you don't go through your insurance a repair doesn't even have to show up on a carfax, use it as a loose guide not an absolute truth. My husband is a body man and with one look he can tell you if there is a real problem or not so you need someone like that to look at it.

Pway · ‎10-02-2015

OP what is the mileage on the vehicle you is planning to purchase? Is this dealership a Lexus dealer or they sell all types of vehicles? I ask this question because I am a firm believer that I do not buy foreign cars from non foreign dealerships, just my opinion.

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.

Anonymous · ‎10-02-2015

Pway I am just curious, why not?

Anonymous · ‎10-02-2015

I don't have my auto enhanced scores but my FICO 08s are TU 762, EX 753, EQ 683. I have 2 closed auto loans on my reports and one has a 30-day late. Was planning to apply with DCU beforehand.

My max budget is 30K. The Chrysler 300 and Lacrosse were on my radar, but after seeing them around town I'm don't love them. I really like them though. Tried to like the ES 350, but DH and I really prefer the look of the GS more.

As far as the accident reported it did say the car drove away, but I asked the dealer if the car had been in an accident or repainted and he said no. In a collision with a minivan even at a low speed I'm sure there would have been a ding. It makes me not trust the salesman. Or he's just being lazy. My concern is when we go to trade the car or sell it we will get lowballed because an accident is reporting. If it was going to be our forever car it'd be fine, but I don't know if I want to spend more than 20K for a car with a blemished record. If we wanted to take a hit in the thousands we'd just buy a brand new car and suffer the depreciation. One of the reasons we're choosing a Lexus is because they tend to hold decent value.

Pway - this is a small town dealer that generally sells small town cars. All kinds of things are on that lot from what I can see. They picked this Lexus up from an auction and have two older ones there as well. Mileage is just over 31K.

Anonymous · ‎10-02-2015

I think you would have no problem finding that car at your price point in perfect condition being only 2 years old. That being said it is not a bad price at all for my area anyway. In reality the accident is probably (but who knows right?) not a big deal but yes the future buyer of the car will be concerned just like you are now. If the CARFAX can prove it was repaired by a certified shop you are a little better off but a dealership going to lowball you, that's what they do. If it were me and you are not currently walking I would keep shopping unless they really came down low on that one. Also the AWD option adds a little to the value. It all comes down to what you are willing to deal with for the price. Hope it all works out!

Dj4Money · ‎10-03-2015

@Anonymous wrote:
I don't have my auto enhanced scores but my FICO 08s are TU 762, EX 753, EQ 683. I have 2 closed auto loans on my reports and one has a 30-day late. Was planning to apply with DCU beforehand.

My max budget is 30K. The Chrysler 300 and Lacrosse were on my radar, but after seeing them around town I'm don't love them. I really like them though. Tried to like the ES 350, but DH and I really prefer the look of the GS more.

As far as the accident reported it did say the car drove away, but I asked the dealer if the car had been in an accident or repainted and he said no. In a collision with a minivan even at a low speed I'm sure there would have been a ding. It makes me not trust the salesman. Or he's just being lazy. My concern is when we go to trade the car or sell it we will get lowballed because an accident is reporting. If it was going to be our forever car it'd be fine, but I don't know if I want to spend more than 20K for a car with a blemished record. If we wanted to take a hit in the thousands we'd just buy a brand new car and suffer the depreciation. One of the reasons we're choosing a Lexus is because they tend to hold decent value.

Pway - this is a small town dealer that generally sells small town cars. All kinds of things are on that lot from what I can see. They picked this Lexus up from an auction and have two older ones there as well. Mileage is just over 31K.

At $30K because of interior qualitty at that price point, they are all luxury cars.

Time is money, all this Car Fax investigation isn't worth the time IMHO, if the car was wrecked it only impacts resale if it was fixed properly, it will drive fine. Flooded cars are more of an issue because tracking down possible electrical problems in today's car is a nightmare.

The Chrysler 300C is a very, very nice car it's 80% Mercedes Benz... Not the current E class but two generations ago. But what makes it fun is the HEMI...

They no longer offer the SRT-8 in the US, not popular enough (they do in the Middle East extremely popular there). But you still get a healthy HEMI under the hood. IMHO there's no point in getting a 300C unless you get the HEMI otherwise your missing the point and should get a Lexus.

You can get monster discounts on any of the cars I mentioned, this hurts resale a bit but in the long run if you plan on keeping it awhile it doesn't matter.

Have you consider the Buick Regal GS? That is a fun car to drive and very nice,

Anonymous · ‎10-03-2015

I need to test drive the Chrysler 300. It was actually my first choice when I thought a Lexus was way out of my price range. My dream car is an MB so you've definitely rekindled my interest. Fortunately I've got time to look around.

imacreative · ‎10-03-2015

This is interesting since I just bought a 2014 GS 350 CPO this past weekend.

First of all, with your credit scores, you should be able to go to a Lexus Dealership and get the 0% 60 mo. financing they have on right now for CPO. Both my experience and TU are in the mid 760s and my equifax is 780 which qualified me for tier 1.

I was in the market for 2013s but the deal on my CPO 2014 with all the bells and whistles with 17k miles came out to 39K out the door.
Here are a few tips:
• use autotrader to get a idea on asking price
• look at a Lexus website near your area for comparables (you may find that a CPO with a higher price tag but 0% may be better)
• take advantage of the carfax report due to the accident, it should sell a few thousands less than one without (should you want to truly go for the one you saw)
• calculate what the total monthly payment will be and adjust to what you are comfortable in paying
• email dealerships for pricing. Tell them you are ready to buy and would like out the door pricing with the breakdowns such as TT&L - you may see other BS charges too)
• once you settle with a price with the dealership, keep the negotiation of your trade in separate. I was able to gain equity with my trade in by doing it that way and apply the cash to my down payment.
• always walk away if you don't like the price. They always tend to call you back with a better offer within a day or so.

I test drove the Acura TL, TLX; the Mercedes E class ; Audi A6, and the BMW 5 series. The GS 350 was a good balance. The vehicle is for my wife and she cares more about the luxury part than the sport part. The Lexus leans more on the luxury side. The interior is simple and clean and the body of the car is not too trendy.

Good luck