drivemycar

Local dealership is offering for $10,800 a "clean" 2006 RX 330 AWD with 143K miles, CarFax shows 2 prior owners, no accidents...has leather, moonroof.....we expressed interest to perhaps test drive it this weekend, and now salesman says it's being put on Manheim auction but of course may not sell. Dealership wants to get this car off the lot, it's been more than 60 days since they bought the car. I advised salesman that IF we liked the car AND the PPI checked out, I'd pay the proverbial $100 over Manheim auction price, the so-called "sweet spot" for most offers (see KBB info below). Can someone educate me what the Manheim auction "sweet spot" offers would be for this car...the seller is pretty desperate, and since I bought a new car from them 10 yrs ago, maybe making $500 on the car is better than selling it at a loss or breakeven at auction...KBB Online Info: :

Further facts: Online KBB (Blue Book, not Black Book) shows trade in value is $7630....private party sale about $9000, and dealer sale price is $10,800 on a "clean" car. But Manheim auctions may not follow these online numbers....right?

Also, Can someone please explain what is the Manheim vig on the transaction?

THANKS for prompt response...might test drive this car tomorrow if it gets above 10 degrees out there!

roadbike56

It's been a long time since I did the auction thing, but auctions cost money. There's a price just for running the car over the auction block, then there's a fee if it sells, usually a % of the selling price. IMHO offering $100 is not much. The dealers I used to be in contact with years ago wanted $300 just to use their dealers licence to buy a car and I had to pay all fees at the auction, and that was a long time ago. The dealer may bring the car back if the offers are well below book value, but if they are close to book wholesale, you won't see it. On the other hand, as you can see the dealer was unrealistic about their starting price if the just "reduced" it to full retail book value. I expected the starting price to be under $10K with that kind of mileage.

pablo87

I am the original owner of a 2005 RX330 with 155,000 miles that has been near flawless but now needs work*. A word of advice, try to buy one with less mileage.




* After 10+ years and 155K, the suspension and steering need a major overhaul. Exhaust as well. Valves are in need of adjustment.

drivemycar

Thanks. What I can't understand is , the dealer is trying to sell the car at auction...and from what I now understand, wholesale price is well below the "trade in value" number the public sees on Edmunds....and let's say, dealer is hesitant to dump it at wholesale and will first reduce retail price a bit...what I dont' understand is why if dealer would gladly accept a bid at auction for this car at the Edmunds private party sell price---well above wholesale, well above even trade in value---why that dealer won't accept that private seller price amount from me at retail? My salesman told me that in the dealer business, there's a big difference between selling at deep discount at auction, and selling at deep discount at retail...not exactly sure why that is, I can only guess....and that's the reason the dealer won't drop the price dramatically for me...he'd rather take a bigger loss at Manheim. Is that something you can commment about?

drivemycar

Thank you for this advice! I think on the basis of our reply, I am going to pass on the car. Believe it or not, the Edmunds price for this car, even with 143K miles, is retail $10,800. Based on what you know or have heard, since the 2006 Lexus RX 300 and the 2006 Highlander were basically the same car under the hood, both built on a Camry chassis, etc.---Lexus of course incorporates more luxury in the cabin---do you suppose the same issues you mention would afflict a 2005 Highlander with some 125,000 miles on it?...In other words, figure that 150,000 miles, give or take, is about the limit before some major repairs begin kicking in....and just curious, I have located a Toyota dealer who is selling a 2006 RX 300 with some 80,000 miles on it, that car retails at $16K (!)....would you say that between 80K and $150K, it should be just minimal maintenance...many thanks...