QuestionHey Robert,
Thanx for your thoughts on the van.I spoke with the dealer again tonight to get the particulars on the vehicle and the deal. I'm told that the van in question is a late delivery 2005 with one hundred miles on the odo. It's a Grand Caravan 28j package (stripped) that was part of a fleet deal that fell through and that it's just been sitting in the back lot.
I booked it out as a used 2005 in excellent condition(that's what I'm assuming until I inspect it anyway) with 100 miles.
Edmunds calls trade in $12,985, Private party $14,615,dealer retail $15,985
Kelly B.B. calls Private party excellent$14,240 and dealer retail $17,020
NADA calls trade in $13,450 and retail $16,000
The dealer says the vehicle is covered by the full 7/70 plan that was offered on the '05s and is offering the vehicle to me for $14,760. He says this is his bottom line and that he can't cut any deeper.
I don't know if it makes a difference or not, but as a point of psychology, I negotiated a deal with the same dealer earlier this week and got him down to $16,800 o.t.d. on an '06 town and country and told him I would have to pass on that deal because we weren't comfortable with the monthly liability.
Also, more than one person's said that they would be leery of a vehicle that'd been sitting unused for so long, seals drying out, acid forming in the crankcase...
in your opinion are either of these concerns legitimate?
Thanx again, Steve
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The text above is a follow-up to ...
-----Question-----
Hey Mr. Loftin,
I'm looking to purchase a new van. The local Chrysler dealership has offered us the option of purchasing a "new" untitled 2005 grand caravan. I'm familiar with the strategies and tactics for buying a new car,but I have no idea where to start with a two year old "new" car. I'm wondering if you have any advice on how to negotiate the sale price of such a vehicle considering that it must have already suffered significant depreciation?
Thanx,Steve
-----Answer-----
Wow, most dealers have 1yr old cars, not 2 or 3 year old cars sitting around. Thats very odd, because they have to pay tax on the cars in their lot so they usually send them to auction after a while of not selling... This car could be an awesome chance, because it is older, but should have almost no miles, at the same time, its been sitting around for the past few years... this is a tough one... how many miles does it have? has it just been sitting on the lot? what was it used for? ask them... find out... they probably really want to get rid of it if they have had it for all this time, its just wasting money, and space, especially with 07 models out... you should be able to get some serious discounts... minivans arent in high demand, they need to get rid of it, and its 2 years old... sounds like you have all the power in this one. Blue book it, see what it says, and ask them what the sticker price was in 05... I don't know what they want for it now, and what model, but the base model with 800 miles (just a guess) blue books at 17,000 retail and 13,000 private party... blue book it yourself if you have more info on the van, but from this.. i'd be asking for 13,000 out the door, and work up from that, i'd treat it just like a used car that has already gone off the lot, let them know that even if it is "new" it has still been sitting around for a long time, and new parts age without being driven, so the car isn't new it was just never purchased. (sitting around isn't good for cars either, so find out what it was used for, and how it was cared for) - Let me know what they are asking for the car, i can better help you then, and make sure you opt for a warranty, if they are calling it new, then you say you want a new car warranty... you have the power in this one, blue book, research, and start low with the pricing, they need to get rid of that van, and they will be flexible because of it. Get back with me, sticker price, miles, etc... model... and i'll help you some more. thanks!
-Robert
AnswerA car that has just been sitting around for a year or so is always going to have risks, depending on how often is was driven, and where it was stored.. I would be leary as well, and because it was a fleet vehicle, the blue book values you stated are high, fleet vehicles are purchased by the dealer on a bulk scale, usually for much less than a standard one, you should be able to get them to go down much lower, close to 12,000 or so, only if they go really low would the risk be worth it, otherwise, i'd look for a car that wasn't on the lot so long...
