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Forum: Car Buying Q & A
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Corvette

Hi Ray...very nice website...have made it a favorite for future purchases! Know anything about Corvettes? I own a very nice 1978 w 97k miles, KBB around 10K. I'm looking for a 98 convertible w 50k miles or less...found one for $19,900 w 40k miles which is a little more than I want to spend. My question: when negotiating a trade w a dealer, what sort of strategies can I use to get him to give me the most for mine while asking him, at the same time to, to reduce his price? Thanks, Eddie

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Re: Corvette

The 73 - 78 Vet's I sold many of these 20 years ago and I note the market value still the same today $7000 - 12,000 for resale, but to a dealer it's much less. Without knowing much about your Vet I am guessing looking at the #'s the dealer would like to hit you around $14,000 - $15,000 in a trade.

Re - Strategies, no matter how we look at this, your trade will show against the $19,900, so if the diff is $12,900 you are getting $7,000 for your trade,,, however with no trade if you could negotiate down to $17,900, then in reality you are only getting $5,000 for your trade,,,,,,,, you follow me, or are you lost ?

How I would approch round 1,,, you got a figure in mind, stick with it and don't let your emotions override, as mentioned above I figure you will be hit at 14K - 15K, and you are thinking deep inside 8 - 9K ?,,, am I close?,,,,,,,,, I want to add some other avenues how this transaction may materialize,,,,,,,, but first I want to hear back from you

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Re: Corvette

hi ray...i follow you...sort of! i spoke w the dealer and he looked at my car (it's on craigslist/ western massachusetts...1978 red) and his first 'offer' without seeing it in person was around 6k (i paid $8500 3 years ago). he's asked for a photo under the hood, which i'll provide once it warms up (currently 8 degrees out...ouch!!). i've put almost 4k into it and don't expect to get that investment back but is asking a dealer for $8k coo-coo? how much can i reasonably expect him to adjust HIS price of $19,900? i know there's a market for 1998 vette's (was motor trends car of the year) but do you think he'd be willing to negotiate even more if i buy during the winter?? is $16-17k a crazy offer?? thank you.

ps...here's the website that has the one i'm interested in! a stunner...hard to 'check' my emotions!!

http://corvettemikenewengland.com/20/1998-c5-corvette-convertible-2/

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Re: Corvette

Lets see if I can explain in a way you understand.

1,,, No matter how we slice it, your Vet is worth around 5K to a dealer and selling private around 8K
2,,, You would like 8K from the dealer, ask yourself this, if dealer pays you 8K, how is he going to profit for re-sale ?
3,,, Asking $19,900 regardless of type of vehicle can in most cases be negotiated down to somewhere between 18 to 19K with no trade,,, to me that spells as I already posted 14 to $15,000 you pay plus taxes and whatever other fees dealer may have up his sleeves you don't bite into.

Regarding buying a sports type car during winter.............
Is this a one way street, you want winter price and summer price for yours? We are only about 90 days away from the spring market and the dealer knows for every day that passes he will get closer to asking price,,, he may even be a smart cookie and up the price if not sold by end of March,,,lol

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Re: Corvette

thanks ray...i get it! and yes, i would love summer price for mine, winter price for his!! haha! so, should i be grateful for an offer of 6k for mine or try to squeeze alittle more? and offer him 17k and try to settle around 18k? tricky business, eh?!?! how much does a dealer typically profit on the sale of a used car? 10%, 20%, 2%?? i have NO idea! that's the $64,000 question isn't it? most consumers don't begrudge a guy making money if he's selling a quality product, we just don't want to get gouged...what do you think??

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Re: Corvette

You and I dont look at this transaction the same way,,, never mind what he wants or you want,,, lets look at numbers that will be on offer,,, how much are you willing to out of pocket to make the deal plus tax ?

If this Vet is solid after an independent inspection, and it's what you really want getting 6 for yours leaving $13,900 plus taxes ONLY we got a fair deal in my mind. anything less will never happen unless dealer trying to unload a lemon.

Re,,, your Q,,, how much does a dealer typically profit on a used car,,, ask that question in a new thread, it's got no play in this thred.

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Re: Corvette

Here is one other idea for you to consider Eddie...why not put yourself in the same position as the dealer and keep all of those profits the dealer was going to make ...all for yourself?

Consider this: The dealer buys cars for their wholesale value and then after reconditioning them to a certain degree turns around and resells them for retail...right? Buy low and sell high. The average spread between a car's wholesale value and it's retail value is how much? ...Answer: arounf 3-3500.00 ...why not put all of that easy low hanging fruit into your bank account?

How do you do it? Simple: As Ray has mentioned several times so far ...ot doesn't matter what strategy you use to get the dealer to give you more money for yours while also knocking some off of the price of his car. Dealers won't play that game ...it's always easier and cleaner and much less confusing if the negotiation is centered around the difference figure (actually negotiating a car deal by negotiating the monthly payments is how you stand to have your ass handed to you the quickest)

Take this next bit on faith becase it is 100% correct: there are 3 ways you will lose every negotiation you ever have with the dealer and the ways that he makes his money off of you in a retail transaction:

1. He sells you the car for more than he paid for it
2. He appraises your trade, determines it's worth $5,000.00 (even in a Canadian ban) and then says "Your car is worth 4,000.00" and you say OK (called UA ing the trade)
3. By marking up the interest rate and selling you extended warranties etc. to be continued

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Re: Corvette

roger...thanks for input...what exactly does '...it's always easier and cleaner and much less confusing if the negotiation is centered around the difference figure' mean?

is the 'diff figure' the diff btw the dealers best offer and my best offer? is the key to work from there?

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