What are some tips and strategies for buying a used car? Particularly one that isn't really in demand and one that you know has sat for a while at dealership/lot? I have read the margin on a used car is much more than a new car so that makes me wonder what can be done to help get the best deal. At what point is a dealer willing to take a little over breaking even to move a car that has sat for 6 months or a year?
The thing with a new car is you get the full warranty and you know the car has no history. A pre-owned car could be a one owner, great mechanically and all the good stuff, but after a while, could start costing you a bunch for repairs and the margins are more unknown. If you buy a new car, don't appear to be too excited about the car you land on and never accept the first two offers - be prepared to play coy but don't be too obvious. Make noises to your partner that you might go by the "other" dealership first and that will get some action. Make sure you know your credit score before you go buy - if your FICO number is high, you hold the whip. They will typically try to "4 square" you - you get an offer from the "tower" where the sales dude goes and it will have 4 areas on it with monthly note #, MSRP, trade# and one other. They will try to make you steer clear of the MSRP # by focusing on the monthly note, but don't fall for it. Get the MSRP down closer to the "invoice", then ask them to recalculate the note. That is where they will get you so do your math - if it makes sense, then you should be good. For a pre-owned, check the Kelly blue book numbers on it first. They will ALWAYS highball you on it first so you be aggressive and lowball them. Then you can work towards the middle. Not much more to it than that unless you can get a low interest rate from your bank and then you know where you stand.
Make sure everything is in the vehicle. I once bought a truck that not only didn't have a spare or jack...but there wasn't even an air filter in the engine which I didn't notice till after the fact. I'll never buy used from a transitional dealer again. The last vehicle I purchased was from Texas direct auto / vroom. They bought a truck from me didn't unseen for a fair amount...and I bought the car the same way...but I went to the dealership to see it...7 days money back guarantee no questions asked.
My assumption is you are targeting something 5+ years old. Buy used from an individual instead of a dealer. You can save a lot. Best ones to buy from are one-owner older folks. The two cars I've bought from older individuals were both grand slam home runs that required little maintenance. I trust dealerships as far as I can throw them. You have no idea how much they paid so don't worry about their break-even point. Go into negotiations with a predetermined walk-away price and don't flinch.
If you are looking for 1-2 years old, I highly recommend going with a certified used vehicle. I know you pay a little extra, but being certified means they extend your warranties (powertrain and non-powertrain). Make sure is certified through the car maker and not just dealer. I definitely thought it was worth the buy with my Honda.
I always buy cars that are barely used for this reason. They're much cheaper than new but still in new shape with a significant amount of warranty.
Hi Guys, I sent the original post from my phone. I know I should have included more details. Here goes. I want to buy a used/CPO Lexus LS 460. 2014 or 2015. Trying to find one around $40K. Saw one yesterday with a clean Carfax list for $38.5K. Missing one of the features I was hoping for. I want it to have under 45,000 miles so it has some warranty. I plan to buy an extended warranty through my credit union which I have done before. If it is CPO and carries a warranty for a couple years on its own that would be fine with me. I am only looking at cars that have no accident histories, no title issues, etc. My primary reason buying a Lexus is they are highly reliable cars. Very low maintenance, and have excellent build quality. I plan to use my credit union for financing since they offer us 1.95%. From what I read Lexus LS 460 are very slow moving cars. The model is changing in 2018 so the 2017’s are not moving and the general demand for them is low. Same body has been out since 2012. No significant changes happened between 2014 and now. It competes with the S Class and the 7 Series but it is a small step down from them and to be honest, it is very nice but not right up there with them. Despite it being a great car it has the older man stigma which may keep it sitting on dealer lots. There is car in Dallas which has the F Sport package which is nice (air suspension, nicer rims, etc) and what I originally wanted. It has sat there for almost half a year priced at 47K. It is at a dealership that doesn’t get very good reviews. Clean car fax, low miles (22K). There is a CPO one at a Lexus dealership Lubbock, yes, that is far. It seems to have every option on earth minus the sports package. It has been listed for 70 days and is currently listed at $47K. It wasn’t my first pick because I kind of had tunnel vision on the F Sport model but the color combination and options made me think I can do without a sport suspension. Clean Carfax, low miles 19K. I have never bought a CPO car. With new cars I learned it is is all about meeting quotas to get the quarterly bonus so dealerships worry less about margin and more about units sold. That worked very qell when we bought our minivan a few years ago. Is there room to negotiate with a CPO? Especially once that has sat and is in an area that may not have the demand for a large Japanese luxury sedan?
Similar to a single, unmarried woman over 35 you have to begin to ask yourself what is really wrong with the car that has sat on the lot for over 6 months.
I've offered this before and will offer it again. If you're buying a used car DM me the VIN and mileage on it and I'll give you a ball park to shoot for. I sold cars for a little bit after I graduated college. Hated the job, but I know how they price them.
Forgot about that one. Make it the very last day of the month as sometimes they may only be a few units away from dealer bonuses and will be more likely to say yes to a low ball offer.
Buying a used car for 40K seems like the middle class version of renting wheels. You are screwing yourself out of the best 2 years of ownership./
A 2014 for half the MSRP that was only driven 6k miles a year. I think you are dealing in a bit of self deception there Sherv.
Shop around for dealers extended warranties. You don't have to buy from the place you bought your car. I did that after I purchased my used car and the salesman was happy to cut me a deal since it was a free sale and he didn't have to work for it.
it is not all that hard to buy a car these days at a fair price, as long as you have good credit. people are always worried about the sticker price, when what they should be worried about is interest rate. most dealerships are aggressively marking their cars down to get you in the door, but then they lower the boom on you with the interest rate.
