At the dealership right now Am I losing with this car deal?

[Family Man]

Were looking to purchase a pre-owned Honda Pilot.
2012 EX-L with everything except DVD player and Nav.
17000 Miles. Clean car fax, one owner etc.
Got the price down from $32000 to $29500.

We have a 2009 Honda Accord LX that the dealer trying to buy it for for $11000. We're getting a 1.9% interest rate on it for 60 months.

Monthly payment will be around $400 per month. Is this a good deal?

 

[sfgiants]

r u trading in that 09 accord?

i went on craigslist n saw a 2012 ex-L with 12k miles for 29,500$ asking price
http://www.dealer5.com/lexus-of-concord/showcase/used-2012-honda-pilot-ex-l-3rd-row-leather-123173

if u go to truecar.com the EX-L brand new starts under 30k. the highest end EX-L with nav n 4 wheel drive and shyt is listed at around 31k.
this is for a brand new 2013 EX-L, leather, nav etc. 31k. this dealer is asking you 32k for a used one with 17k miles

 

[Family Man]

r u trading in that 09 accord?

i went on craigslist n saw a 2012 ex-L with 12k miles for 29,500$ asking price
http://www.dealer5.com/lexus-of-concord/showcase/used-2012-honda-pilot-ex-l-3rd-row-leather-123173

if u go to truecar.com the EX-L brand new starts under 30k. the highest end EX-L with nav n 4 wheel drive and shyt is listed at around 31k.
this is for a brand new 2013 EX-L, leather, nav etc. 31k. this dealer is asking you 32k for a used one with 17k miles

No. We got the price down to $29000 plus 11k for the trade in. The 09 Accord has 65000 miles on it. We bought the Accord for $19000 in 2008.

 

[MikelArteta]

thats it breh?
i bought my 2008 accord for like 10k and that was through a friend who works at a auction

you getting ripped off

 

[tofuspeedstar]

If you have to make a thread about it to ask, you're probably losing breh.

 

[88m3]

loss

 

[unit321]

Were looking to purchase a pre-owned Honda Pilot.
2012 EX-L with everything except DVD player and Nav.
17000 Miles. Clean car fax, one owner etc.
Got the price down from $32000 to $29500.

We have a 2009 Honda Accord LX that the dealer trying to buy it for for $11000. We're getting a 1.9% interest rate on it for 60 months.

Monthly payment will be around $400 per month. Is this a good deal?

Prison rape.

Sell the Accord on your own through auto trader.
Go to a bank or credit union and try to get your own financing for $18,000.
Then, with cash plus your own financing, you can bargain down the price to the $28,000s if not $27,000s. Now you have clout to make that kind of offer. You can walk out the door and go to another dealership if you want.

 

[CJ]

Bringing his own financing will not be anything near 1.9% for 60 months that Honda is offering. He will have to do the math between that and the extra money he hopes to get selling the car privately. Also keeping it mind that trading it in he will get the tax savings. So he'd have to sell privately for more than a few grand just for that to balance out.

 

[unit321]

Bringing his own financing will not be anything near 1.9% for 60 months that Honda is offering. He will have to do the math between that and the extra money he hopes to get selling the car privately. Also keeping it mind that trading it in he will get the tax savings. So he'd have to sell privately for more than a few grand just for that to balance out.

Dealerships get their used cars on wholesale. They mark up the price to give themselves a buffer to bargain on the selling price. When someone brings in a trade-in, they can make a killing on it because they will always low-ball you on the trade-in or they will not go down on the price. Either way, they can hide the profit margin they make on trade-ins. Sometimes, it's like the buyer is basically giving their trade-in for free.
Example,
Wholesale cost of used car to dealer: $10,000.
Sticker price: $16,000

So, if a buyer brings in a used-car for trade-in, the dealer expects to make a certain minimum profit margin. For simplicity's sake, let's say that is $1,000. So, a buyer comes in and offers $11,000. If the sales manager wants to, he'll approve it. Boom. They made a deal and they made a profit.
Let's say a buyer comes in with a trade-in. It's a car that is worth $9,000 from NADA or Kelly Blue book. Wholesale, the car is worth $4500. They can take the trade-in for $6,000 plus $10,000 cash. If he takes it, the dealer has $4,500 car plus $10,000. That's $14,500 in equity. They profited $4,500.
Let's say the buyer wants more value for his trade-in, $8,000 and he wants the final price of the car to be $15,000, so he would owe $7,000 cash. That's $4500 for the trade-in plus $7000. That's $11,500 in equity where $1,500 is the profit.
They can make that same profit margin if the deal was $9,000 trade-in plus $7,000 cash.

It's all playing with the numbers.

 

[tofuspeedstar]

Also it's good to look out of state even for a deal. Here in Texas cars are cheap, Florida and California also give good deals. It might be related to the fact their state economies are terrible. But, I don't know.

 

[CJ]

Dealerships get their used cars on wholesale. They mark up the price to give themselves a buffer to bargain on the selling price. When someone brings in a trade-in, they can make a killing on it because they will always low-ball you on the trade-in or they will not go down on the price. Either way, they can hide the profit margin they make on trade-ins. Sometimes, it's like the buyer is basically giving their trade-in for free.
Example,
Wholesale cost of used car to dealer: $10,000.
Sticker price: $16,000

So, if a buyer brings in a used-car for trade-in, the dealer expects to make a certain minimum profit margin. For simplicity's sake, let's say that is $1,000. So, a buyer comes in and offers $11,000. If the sales manager wants to, he'll approve it. Boom. They made a deal and they made a profit.
Let's say a buyer comes in with a trade-in. It's a car that is worth $9,000 from NADA or Kelly Blue book. Wholesale, the car is worth $4500. They can take the trade-in for $6,000 plus $10,000 cash. If he takes it, the dealer has $4,500 car plus $10,000. That's $14,500 in equity. They profited $4,500.
Let's say the buyer wants more value for his trade-in, $8,000 and he wants the final price of the car to be $15,000, so he would owe $7,000 cash. That's $4500 for the trade-in plus $7000. That's $11,500 in equity where $1,500 is the profit.
They can make that same profit margin if the deal was $9,000 trade-in plus $7,000 cash.

It's all playing with the numbers.

Yes, I am aware of all that. They love to double dip on the "trade in used car to buy used car" scenario.

My main point was that, like you said, you have to play with the numbers.

 

[the artist known az]

So what you get the car for?

 

[analog]

29500 - 11000 (tradein) = 18500

60 month term, at 1.9% is about $325/month. Unless you live in a place where you paying 25% sales tax, dealer got you bending over like

 

[Quavo]

man you nikkas move like women when it come to cars

Smarten up nas

 

[CrimsonTider]

Why are you selling a car that only has 65,000 miles on it?