how do dealerships price vehicles ? ? 05 Rubi - Off-Road Forums & Discussion Groups
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post #1 of (permalink) Old 12-10-2005, 04:30 PM Thread Starter
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how do dealerships price vehicles ? ? 05 Rubi

So i've recently become enamored with an 05 Unlimited Rubicom at the local stealership....6 speed, khaki colored, soft top and full steel doors. only 3750 miles. they are asking 24990....blue book is 23990

im going to sell my jeep (anyone interested?)

anyways....for those who work in the dealership industry....how does pricing work.... do they buy it for a cartain amount then mark it up a certain percentage for thier asking price? or is it artibrary?

Im trying to figure what would be a reasonable offer cuz i dont believe in payign what they are asking

i'd like to run away with it at 20k..but im not sure that will happen

any input is welcome
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post #2 of (permalink) Old 12-11-2005, 06:55 AM
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Re: how do dealerships price vehicles ? ? 05 Rubi

Unless things have changed in the last 30 years, (they haven't) it's more or less arbitrary. Actually, it's very simple. They get it as cheaply as they can, and sell it for as much as they can. In the end, there is not necessarily any relationship between the two prices, although the sales manager will dig in very hard to avoid taking less than some minimum profit.

Sometimes they make a mistake and put more into a used vehicle than they can sell it for. Sooner or later they'll sell it though, even if it means taking a real loss. Doesn't happen often.

Sometimes they hit a home run; buy a vehicle very cheap from someone who doesn't know its value, and wind up selling it for more than it should be worth to someone else who doesn't know its real value. That happens much more frequently.

And when I say "buy a vehicle", it doesn't matter whether it's a trade in, bought at auction, from another dealer, or from an individual who comes in off the street. When they put it in their inventory it has a dollar amount that is what they have in it.

The interesting thing about the used car business is that there is a huge amount of profit in it, compared to the new car business. Thirty years ago, when the fanciest, full-size Pontiac Grand Ville was a $5500 piece, we would take $100 gross profit on them all day long. But the target for any decent used car would be $1000 gross.

The reason is simple; A prospect could drive fifteen miles to the next dealership (or get on the net today) and price exactly the same new car. But any used car on the lot is a unique piece. There isn't another one in the world EXACTLY like it, and nobody outside of the store knows how much its on the books for. That gives a salesman two invaluable points to work with, and that pushes the profit margin up.

In the end, the only way to get a good deal on a used car is to shop all over, gather information on a bunch of similar vehicles, and don't let yourself get stuck on a particular one. You have to be prepared to walk away and let someone else buy it. The longer it sits on the lot, the less they'll take for it, but of course, the odds increase that someone else is going to buy it instead of you.
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post #3 of (permalink) Old 12-11-2005, 09:26 AM
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Re: how do dealerships price vehicles ? ? 05 Rubi


Dealerships have no set percentage across the board that they would charge. the vehicle your looking at if used, and was traded in, the price is solely dependent on the previous deal involving it. it was a trade???? If so the dealership will try to buy at rough book but will usually end up at fair or good,(book dependant on area) black book, green book, red book, blue book, black book has regional books and is most accurate.


www.edmunds.com is a great source, good luck and dont be scared to walk out.

they made more than one


8 yrs experiance in auto sales
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post #4 of (permalink) Old 12-11-2005, 12:14 PM
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Re: how do dealerships price vehicles ? ? 05 Rubi

My advise to you is to wait if you really want it. Now and the next few months are the slow season for dealerships. The longer it's on the lot the better deal you can get. Just don't wait too long as it gets closer to spring alot people are in the market. Hey, to go back on what I said before you may want to look into before year end because the dealership may want to get it off the books if "their" year end follows the regular calendar, it may not.

Go look at it and go through the motions and then low ball them. Deal from there and when you have a deal tell them you have a trade in and get a better deal. You got be a weasel just like them to get a good deal.
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post #5 of (permalink) Old 12-11-2005, 12:52 PM
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Re: how do dealerships price vehicles ? ? 05 Rubi

If you know what you are willing to pay for it - make an offer.
You'll never know how much they paid, or what their bottom line is untill you make a serious offer -- with money.

If they know you are serious, they'll listen to you.
Tire kickers or game players will get the runaround.

It never hurts to low-ball an offer below what they are wanting - sometimes you get great deals that way.
Not just cars, real estate - most everything.

Remember, you can always go up, but it's difficult to go down.

Recently:
ie - house - agent said 135K - bought it for 82k
property - agent said 22k - bought it for 8k

Both times I dealt directly with the owners - both times the agents told me it was illegal for me to talk to the owners -- bull!
motorhome - asking 2800, paid 1200

You never know till you aske
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post #6 of (permalink) Old 12-11-2005, 01:19 PM
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Re: how do dealerships price vehicles ? ? 05 Rubi

That's more than I payed for the same thing new.
You are the boss of the deal, Greg.
Tell them what you'll pay.
But I caution you to consider loan APR's, which are usually better on new vehicles.
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post #7 of (permalink) Old 12-11-2005, 01:36 PM Thread Starter
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Re: how do dealerships price vehicles ? ? 05 Rubi

yea, with all incentives and low interest i need to see if it might not be the same to buy a new one!

they are asking a good price compared to others online. esp for that low miles....its a fantastic price, but i'll still haggle as best as i can....i got screwed whe i bought the 97 cuz i didnt know better.....but when i bought to toyota i did really good

I posted my jeep for sale on here and working on a few other places....add that to end of year bonus and tax return and you might see me roll'n in a new jeep come time for the Bash!
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post #8 of (permalink) Old 12-11-2005, 02:45 PM
 
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Re: how do dealerships price vehicles ? ? 05 Rubi

whatever you do make them set a price when you agree. they will try to trick into finaning options extended warrantees so on and so on. set the price first then deal with all the rest seperatly and individually. Don't move on to the next deal until you are satisfied. And best bet to get a loan outside of the dealership. If the dealer is a weasel then get him close and walk away. Comeback in a few weeks and try another sales fool, if you can. Look for any way to get info on it. send a buddy with questions send a few, and you can find out almost everything you need to know. take your time and use the Force
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post #9 of (permalink) Old 12-11-2005, 07:57 PM
 
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Re: how do dealerships price vehicles ? ? 05 Rubi

since its a rubicon unlimited, they know what they got. you pretty much going have to pay their price.
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post #10 of (permalink) Old 12-11-2005, 08:44 PM
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Re: how do dealerships price vehicles ? ? 05 Rubi

I'm surprised that you can get a Rubicon Unlimited - new or used, at that low a price at all.

With such low miles, it must have bee a repo - thrashed? Check it close.

My regular '03 new cost me a tad over 30k out the door. Before almost 10k worth of mods.

Prices must be dropping.
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