TennLexus

I am contemplating buying a 2003 LS430 from a dealer(not Lexus)...........he has been around for around 9 years and has sold over 8,000 cars in that time. He is well known and has a good reputation. I want a 2003 LS 430 white, w/Nav and less than 35k miles. I have a price in mind (around $35-36k). He thinks that his full-time buyer can find one like the one I want. He will be going to Manheim Auctions to find the car.

My question is how much do dealers actually buy these cars for? I know they have to make a profit but I am curious as to what "auction" prices are. I realize a more popular car will command a higher price but other than that what profit are we talking about? $2k, 3k.......................

dj430

somtimes the wholesaler buys in bulk when i say bulk i mean 4-6 cars at a time and somtimes he gets a better deal like that, sometimes not but he still makes a litte money off you i would say 2-4k it all depends they dont have that much room to make money because your buying a luxury car.The thing is they take care of you and you would refer somone else to them, so they make there money in volume,plus there name is good out there.

lnguyenh

Actually, auction cars are dirt cheap (but hard to get in because you have to have license - I am talking about private auction here not the open public one). If he sells you the car for $35K, he probably could get it for less than $20K. They will all deny it but they can get a car for as low as 20-25% values of what the car's worth. It all comes down to connections!

GRAND_LS 4

iTrader: (2)

25% would be 28K, not below 20. Its not really true that you can profit over 15K from a 35K car, no matter how good of a negotiator you are. Because if you think about it, no car will sell for 18K that could be sold to the public for 35. Dealers would just fight over it till it gets to at least 32K. Not to mention, no one would sell let a car go at an auction for that much when they can get an extra 15K.

I’m going to say, if they sold it to you for 35, they paid 28-33K.

lnguyenh

if 25% of 35K is not below 20K then what is? Auction cars usually cars that are repo'ed. They don't care what the sell, the owners still owe them the rest.

carguyay

This one just went wholesale at Menheim with 47,792 miles for $32,000

GRAND_LS 4

iTrader: (2)

35*.25=8.75

35 - 8.75= 26.25 = $26,250. Are you saying that they make 25% profit? or they buy the car for 25% of the price they sell it?

Btw, I’m an auction gooer, and have access to all the car sold in the United States through Manheim auctions online. I will tell you from experiance that you cannot buy a car for under 20K, and sell it for 35K.

Please share the experiances you've had.

ali1983

dealer would pay more at a re-po auction...since the public is willing to pay more and they have to bid against the public...alot of dealers dont waste their time at repo auctions...

but the auction his dealer is going to is different...it's a wholesale auction

most cars are not repo-ed at these auctions.....most are trade-ins

how long will it take a Hummer dealer to sell a LS430?

they dont want the car to sit on the lot to long....since they want to have a high turnover rate on their cars....dealers will take a trade-in with the pure intention of sending it right to auction..just putting it on the lot until the monthly auction....the auction prices reflect the low trade-in amounts dealers offer.....

most dealers will send cars to auction to flip them quickly...and get their money unlocked, so they can invest it elsewhere........

the multi-car bundling is extremely common..and that's something common with dealers with connection.....

the dealer will buy the car for whatever price....mark up a 1000-1500 in expenses to overhead,showroom prep, transportation.....and then calculate the profit from their.....

i've looked heavily into getting cars from auctions......and have friends that go to auctions, that sell at auctions, and that do wholesale auto-sales....

i've talked to them about ls430 that should sell for 35k to me...they said hey could get the car for 30ish..........

if a dealer has a car they are looking for (someone already wants to buy)...they are willing to pay a little more....

my pricing may be wrong...since i'm in virginia sourcing friends who've dealt with pennslyvania and new york auctions..........

there are HUGE dealer auctions....where the dealer might even find a few LS's that meet yoru demands........allowing him to get it for less and mark it up even more......

GL man

let us know what happens

ragabnh

Ali1983 post is very accurate, I went to Manheim auctions quite a bit, you save $2000 to $3000 for a $35000 car. Finding a CPO car in auctions is very rare.

ali1983

true

mostly a lexus dealership will pick up LS430s from auction....with intentions to sell them on their own lot and then do the inspections necessary to certify it a CPO


IMO:
i honestly think a LS430 is one of the safest purchases....still a relatively new vehicle meaning you most likely will be the 2nd owner...the car is extremely reliable...i wouldnt expect to spend more than 2-3000 in repairs during the duration of the warranty(rough cost of warranties)

but if you want the peice of mind and less risk....you can use the money saved to buy a 3rd party warranty...

ToyLexmods

I wanted to add a little different perspective.

Do you want an auction car from NY? or PA?

Salt, big city scrapes and bangs, repaints, ect...

You can buy a CPO from Lexus for 35ish...02 or 03. Why is this not a option? Buy the car from your own neck of the woods and personally inspect the car. 35k is a big chunk of change.

Stealx

I'm selling an 03 that I bought at the auction from Lexus 38k miles, no navi though