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P-hat_in_Cincy
06-19-2006, 08:44 PM
I know this might be a broad questions, but does anyone have any insight/info they'd like to share regarding used car pricing mark-up? Specifically from a dealer, but any info is appreciated.
Thanks!

erkoehler
06-19-2006, 08:47 PM
Call UMP! :D

6ballsisall
06-19-2006, 08:58 PM
FWIW N.A.D.A stats say average used car profits on the front end are between $1500-$2000k per used unit sold.

rodltg2
06-19-2006, 09:04 PM
is KBB.com not accurate enough?

P-hat_in_Cincy
06-19-2006, 09:21 PM
is KBB.com not accurate enough?

Well...I'm just not sure. I've been fortunate enough with past car purchases (employee/supplier pricing), but also learned that offered "avg trade-in" is no-where near published "avg trade-in" pricing. I assumed this going in and sold the vehicle outright making about double what a dealer offered.

Let's just say that if a dealer is getting a trade-in at 60-70% of published trade-in value, does the avg. retail still hold for that particular vehicle?

It just makes me leary that if one # (avg trade-in) isn't valid, the other may not be either.

6ballsisall
06-19-2006, 09:52 PM
Well...I'm just not sure. I've been fortunate enough with past car purchases (employee/supplier pricing), but also learned that offered "avg trade-in" is no-where near published "avg trade-in" pricing. I assumed this going in and sold the vehicle outright making about double what a dealer offered.

Let's just say that if a dealer is getting a trade-in at 60-70% of published trade-in value, does the avg. retail still hold for that particular vehicle?

It just makes me leary that if one # (avg trade-in) isn't valid, the other may not be either.

Dealers don't use the NADA guide you can as a consumer use online. They use the Black book, much different numbers than what you see online. It takes into account auction pricing and all kinds of other stuff. Use Blue BOok only as a guideline.

BrianM
06-19-2006, 10:41 PM
Used car pricing and dealer profit on used cars can vary widely. Jeff is right about the black book. The other thing is you can only guesstimate what the dealer paid for the car. Use KBB and Edmunds to find out about what you should be paying for a car from a dealer. Just research a lot and try not to get totally hosed. When I was selling cars a few years back we (the dealership) rarely made less than $2,500 profit and frequently made $4-6k on used cars.

6ballsisall
06-19-2006, 10:48 PM
Well...I'm just not sure. I've been fortunate enough with past car purchases (employee/supplier pricing), but also learned that offered "avg trade-in" is no-where near published "avg trade-in" pricing. I assumed this going in and sold the vehicle outright making about double what a dealer offered.

Let's just say that if a dealer is getting a trade-in at 60-70% of published trade-in value, does the avg. retail still hold for that particular vehicle?

It just makes me leary that if one # (avg trade-in) isn't valid, the other may not be either.

One thing to keep in mind is if the car you got a trade in value was a fairly late model vehicle that wasn't abnormal make and model (not a Lambo, Maybach, etc...) the used car market is a mess right now. With huge rebates on new, used cars are really suffering too because in many instances, people can buy new for almost the same money as a used car where the prior buyer didn't get all the cool rebates 2 years ago but now wants to unload and is competing against the new buyer that has those options.
Huge rebates are a double edged sword for the buyer, great if you want to buy new, great if you want to buy used, not so great if you want to sell or trade in used.

P-hat_in_Cincy
06-19-2006, 11:19 PM
We're looking at diesel Ford Excursions. They are HUGE and with gas prices are probably not hugely sought after in today's market. I know of one that was traded in b/c the owner 'significantly' downsized. Maybe that was an indicator to me that someone wanted out of the operating cost of that vehicle pretty bad. I'm just struggling with published value vs. current market value...at this particular time.
Thanks for the replies so far.

6ballsisall
06-19-2006, 11:20 PM
We're looking at diesel Ford Excursions. They are HUGE and with gas prices are probably not hugely sought after in today's market. I know of one that was traded in b/c the owner 'significantly' downsized. Maybe that was an indicator to me that someone wanted out of the operating cost of that vehicle pretty bad. I'm just struggling with published value vs. current market value...at this particular time.
Thanks for the replies so far.

Is it a 6liter or the old 7.3 liter PSD?

P-hat_in_Cincy
06-19-2006, 11:40 PM
Is it a 6liter or the old 7.3 liter PSD?

6.0L.

This message is too short, but not anymore.

Datdude
06-20-2006, 11:32 AM
6.0L.

This message is too short, but not anymore.

What year 6.0L??

Leroy
06-20-2006, 11:42 AM
I agree with Brian, lots of research and there are sites where people post what they paid for vehicles and you can see what the market is doing.

Only other input is keep em until the wheels fall off. Everytime you trade you will give up $2500 to $6000 at least per Brian below. Dealers profit means more money you spent over time.

Used car pricing and dealer profit on used cars can vary widely. Jeff is right about the black book. The other thing is you can only guesstimate what the dealer paid for the car. Use KBB and Edmunds to find out about what you should be paying for a car from a dealer. Just research a lot and try not to get totally hosed. When I was selling cars a few years back we (the dealership) rarely made less than $2,500 profit and frequently made $4-6k on used cars.

P-hat_in_Cincy
06-20-2006, 12:42 PM
What year 6.0L??

The specific vehicle is an '04, but jrandol has opened my eyes to some potential 'issues' with the 6.0l. Some people have no complaints and would do it again while others say no way. More confused now than ever.

These things (in color and configuration we want) are pretty hard to find w/o driving too far, so we may have to go in a different direction.

We won't trade in. When we had asked in the past it was just for information. That information is what has me questioning what dealers give for the vehicle and what they ask (retail). If you go by published trade in to retail, it generally is a few thousand. BUT if you "offered" trade-in (wholesale) to retail it could be significantly more!

Workin' 4 Toys
06-20-2006, 01:11 PM
One of my buddies has a, '03 6.0 with several issues, bellowing smoke and wouldn't get out of its own way a few times. Its been to the dealer a few times, and seems to be holding tight so far since the last visit.
Another buddy has several 7.3's and 6.0's, not many issues at all.

IMO, If I was looking used (Diesel truck) I'd look (Ford '00-'02) (Dodge '98-'02) or new (Chevy/GMC '07)