While having purchased quite a few new vehicles, I have never bought a used one from a dealer, having always acquired from private owners.

Am now trying to make a move on a late model dealer truck. They took it in on trade in mid-June and originally listed it at $32,000 (a very good to great price per several value guides) and have cut their price once by $500 on an unknown date. So, it has been on their lot for 60 plus days. Them taking it to auction is unlikely due to their location. The dealer is in a smaller city in a somewhat lightly populated area. They sold it new and it took them 2 full years to do so!

Today, they came down another $500 and I countered $1000 (including doc fee) below that. Any thoughts on how much room they might have or any other suggestions?

 

It would help to know what the miles and year is. What make as well.

Sounds to me me as though they priced it too high. So that is why it is not selling.

 

There's almost no way to know with a used car. You don't know what the dealer's costs were. You have the KBB price, and you know it's been sitting. If they don't come down, your next best tool is time; if it doesn't sell, just keep coming back--"I see you still have that car."

 

It's a 2016 F-150 Lariat 5.0 with 18,000 miles. It sold new in 5/18 so is still under factory warranty.

 

My guess (and it is nothing more than that) is that they have 28 or so in it, given their initial price.

 

Well said. However, an easy comparison of what the KBB sale price is would help determine if this car is over priced or not b

 

Even apart from price, with all of the storms and bad weather across the country, make sure that anything you look at doesn't have any signs of flood damage. Flood-damaged vehicles are, unfortunately, a major scam from both private individuals and dealerships. Hail, tree branches, and other effects from storms can also damage vehicles, especially with the thin sheet metal in use today.

 

With the way the dealers structure there pricing now with internet prices being a few thousand below "sticker". My experiences they wont bargain much more than a few hundred dollars off. Ive bought a few cars over the years and its been straight forward. They would just let me walk right out on a bunch of different cars / trucks from alll different brands, Chevy, Lexus, Toyota, VW, and a few more. At least this is how the used car market has been around NY / NJ

 

I've bought a lot of used cars from dealerships. While I'm sure it varies greatly, my experience has always been if you catch a car around the 60 or 90 day mark of sitting on the lot, they're ready to get rid of it for one reason or another. My most recent purchase I was able to get $3k off of their already very reasonable asking price because the car was 10 days away from going to auction. I made a low ball offer, they countered, and I countered again and they accepted. I figure my offer was maybe $1k or more above what they would get doing wholesale or auction so they felt like they were winning and I did as well.

I think your initial strategy of going $1,000 below their most recent price drop is very fair and not insulting. I'm assuming they didn't take it since you're posting here, but what exactly was their reaction/response to your offer? I personally believe that used cars offer the dealers a substantial margin - there is really no way of knowing or guessing what they have "in the truck" - their offers for trades can vary wildly and can be based on a dozen different factors. When combining the trade deal with the new car margin, they may be in a $5k to $7k positive position on the used car at the current price, so there may be more room than you think. If you're in an area where pickups move quickly and this one is sitting, eventually they'll catch on to your fair offer.

 

Well, jrmckinley, there hasn't been any response to my counter of yesterday (this is long distance over the internet). And THAT is about par for the course. I have never dealt with such a slow salesman - it's been like pulling teeth. I did get a customer service satisfaction email this morning from the sales manager and told him what a miserable experience it's been.

 

I'd pick up the phone and call the sales manager and let him/her know who you're working with, the slow response, and then throw your offer at the manager for the truck. The salesman is likely having to get manager approval anyway, so I'd cut out the middleman. Just for fun, I'd subtract $500-$1,000 from your offer you made to the salesman and see what the manager does with that offer.

 

I am not sure why you say it is pulling teeth with the salesman. You offered them a price, they seem to be not interested. So they don't call you back.

$32K for this truck seems to be on the low end of the price scale. Looks like a good deal already.

 

Your status is best answered by whats the bottom on that vehicle.

1) Bottom is MMR pricing + whatever its cost for refurb.

Find a person who has access to it and there you go.

Without that, you will never know anything.

KBB Edmunds etc are basically setup by dealers for the benefit of dealerships

 

Thanks to all for your comments.

Well, it got away from me and was sold yesterday. It had the right options, mileage, price, and ownership history. It was foolish of me to quibble over a thousand bucks.

 

Keep your eyes open, another one will come along.

I've always loved to negotiate; my wife hates it, she thinks she might "offend" the seller. I can remember many decades ago when I lived in East Africa for a year that if you went to the open-air market and wanted to buy some tourist item, the seller would assume you an ignorant fool if you agreed to the initial price.

Going after something stale on the lot, going a couple of thousand of dollars below asking, then going to the sales manager after a little more time has elapsed are all great. And be totally willing to walk if you're in a face-to-face meeting. If you love the car they can sense that.

One more thing, I've always assumed there would be some time of the month when the company REALLY could use an extra sale. So I'd go in and say "it's a cash deal, we can finish this in just a few minutes." Could be wrong, but I think that often the speed and certainty of a transaction are especially attractive to them.