What are car dealers thinking?

[orangensaft]

I'm kinda bored at work so I decided to check out S197s for sale in the area, and the prices these dealers are advertising are outrageous. If I had waited 6 months to buy mine they would have been asking 23-24K. They don't go below 18K unless it has over 60K miles regardless of year. I even saw a few that I looked at in January and the asking prices went up 2-3K.
Theres a grabber orange GT similarly optioned as mine with twice as many miles for 25K. I'm glad I bought when I did or I would have been very dicouraged at the amount of negotiation I would've had to do.
How do they expect to sell these cars?

 

[Daniel Day]

I just saw a news report last week that said research shows that used car price are at a record high, up 15-20% from last year. They said it is due to people holding onto their cars longer and not buying new cars because of this crap economy. Makes sense I guess.

 

[Fullboogie]

I saw an 08 with 28k miles on it for $25,000 last weekend. What a joke.

 

[muztangman93]

In my area thats the going rate.

 

[Steedman07]

Are you seriously asking why a rear wheel drive sports car went up in price from january to summer? Are you stupid? Of course dealers ask more in summer.. What a fucking novelty.

And just cuz dealers"ask" a certain amount for their cars, doesnt mean they will get it. It supply in demand and yes, all used car pricing has gone wayyy up. Go try and buy a used ford focus for anywhere close to nada trade value, or a used honda or toyota for that matter. Some used cars are selling for more than what they were new due to a huge shortage in inventory levels on most brands.. Do some research before you guys make yourself look like morons..

 

[tjm73]

They know that Mustangs are hot right now. Especially since it's summer. They guy or gal that wants a Mustang will pay a premium for the right car. Used supplies are scarce right now. New is a lot more or at least enough more to push people out of that market. So the dealers are doing the thing business does when they have an advantage. They are willing to sit on them at higher prices. Buyers will eventually pay them or the dealer will get sick of having it and drop the price. It's a game as old as life.

Someone will come along willing to pay a price when that happens if the price is enough for the dealer, the deal will be made and the car will be sold. I call it the "Buy-Sell Slope". The red dot moves along the black and green lines. Where they intersect is the selling point.

 

[NUTCASE]

kind of.....

you are not accounting for the idoits that are just like "OMG I GOTTA HAVE THE CAR FROM TRANSFORMERS ILL PAY ANYTHING" or something like that and will pay any intrest rate and won't even look at the price. sometimes these ones get repoed...wonder why LOL

then you have the dealer setting the price low. then when you get to signing they have attached so much useless bullshit (like charging you to take off the pinstriping that they already charged you to put on, ect.) to the price you are paying like 2k or more over what you agreed on or intended to pay.

but its ok becouse you are going by what your payment is gonna be right.....right??? LOL (read another way dealers charge the shit out of you without you noticing)

 

[Seer]

I remember being able to buy a 4.6L 4v Cobra for $24,500 new.

 

[HitandRunDriver]

When i was looking for a mustang my closest dealer tried to sell me an 09' Base gt with cloth seats and 30,000 miles for 25k....utter bs

 

[tjm73]

kind of.....

you are not accounting for the idoits that are just like "OMG I GOTTA HAVE THE CAR FROM TRANSFORMERS ILL PAY ANYTHING" or something like that and will pay any intrest rate and won't even look at the price. sometimes these ones get repoed...wonder why LOL

then you have the dealer setting the price low. then when you get to signing they have attached so much useless bullshit (like charging you to take off the pinstriping that they already charged you to put on, ect.) to the price you are paying like 2k or more over what you agreed on or intended to pay.

but its ok becouse you are going by what your payment is gonna be right.....right??? LOL (read another way dealers charge the shit out of you without you noticing)

No "kind of". I am sure my graph is spot on. "Buyer Interest" comes form any factor that drivers a buyers interest. If they are interested enough (or dumb enough) they will ignore or not care about financing rates, purchase price, etc... (which is a major part of why the economy is in the shitter IMO)

 

[AbdullaGT500]

You need to factor in that 90% of people in America don't care how much the total cost is, as long as they can afford the monthly payments and insurance.

 

[NastyStang113]

You need to factor in that 90% of people in America don't care how much the total cost is, as long as they can afford the monthly payments and insurance.

I disagree...

 

[NUTCASE]

admittadly I bit the hook on that one at least twice.

then not to long ago I read a consumer reports on cars and they had like a 4 page article on what to expect to pay extra for, what the appropriate amounts to pay extra for are, and how dealers screw you.

after reading that and remebering some of my car buying experiences I had and pulling up the old contracts I really felt had and now I highly doubt I will ever enter into an auto loan again. cash only next time around. I calcuate the cars value, account for tags and taxes, account for the dealership needing to make money to even be there for me to buy the car, and thats how much I bring wth me to the dealership. I don't care how much they tack on there, make that contract look however they want, if the go over what I brought to the table, I walk.

negotiating by payment amount is one of the biggest way they get people to pay more than they initially intended.

but back on topic, yeah you have to also account for the time of year. early winter is about the best time to buy a sports car.

and also some dealers will let a car sit on the lot for over a year with a rediculouse price tag on it. I dunno why, yeah you wanna make money but at the same time moving cars will always make more money then letting 1 car sit there waiting for the perfect idiot to show up so you can screw him over.

 

[Fullboogie]

Are you seriously asking why a rear wheel drive sports car went up in price from january to summer? Are you stupid? Of course dealers ask more in summer.. What a fucking novelty.

And just cuz dealers"ask" a certain amount for their cars, doesnt mean they will get it. It supply in demand and yes, all used car pricing has gone wayyy up. Go try and buy a used ford focus for anywhere close to nada trade value, or a used honda or toyota for that matter. Some used cars are selling for more than what they were new due to a huge shortage in inventory levels on most brands.. Do some research before you guys make yourself look like morons..

Is this something personal for you?

 

[tjm73]

and also some dealers will let a car sit on the lot for over a year with a rediculouse price tag on it. I dunno why, yeah you wanna make money but at the same time moving cars will always make more money then letting 1 car sit there waiting for the perfect idiot to show up so you can screw him over.

That would be a traffic driver. Bring them in and sell them something else.

But if it doesn't drive traffic into the dealership, it's costing them a ton in dealer to mfg fees. When my Father wasn't retired every new car cost him a percentage of sticker just to be one the lot every month. The longer it sat the more it cost. Made moving that new car over the used car important. He still made lots more on the used cars. They don't make much on new cars. Used cars are the money makes.

 

[stang72]

Man somebody looking for a mustang needs to go on a forum like this.Guys on her are selling twice the car at half the price.Why is it a dealer can get 18-20k for 06-07 and you can't get 15k for your 06-07 if you try to sell it.

 

[tjm73]

One... Private sellers carry no liability to warranty the car like dealers do.
Two... Private sellers have no overhead, insurance,wages, etc... to cover.

So some buyers will accept paying more at dealerships. The really smart ones find and buy at places like the board here.

 

[notastockdohc]

I paid 12k for my 05 gt mineral grey black leather shaker 500 bullet rims, 42k miles when I bought it. I got mine from a dealer back in feb. I couldn't pass it up. Carfax is clean too.

 

[stkjock]

Is this something personal for you?

LOL

you could say that...... he's a GM at a Ford store...........

 

[Fullboogie]

I thought something was up. Steedman's usually a cool cat, and this topic was way too silly to set him off.

Steedman - have a beer, man!