QuestionI recently purchased a 2004 Honda Odyssey with 45k miles. It looks and drive great. The dealer was a Honda dealer and had all the service records and it has been well maintained 1 owner Van they got on a trade-in. I researched on autotrader and went to other car lots checked out Edmunds. The question is what price should I start out at when negotiating? I started out at NADA trade in value ($15,375)and went up during the negotiation 125 dollars plus they added on $399 DH charge (extra profit) They were originally asking 18,800 and had dropped it to 16,800 before I looked at the Van. I stuck hard to my price and bought the van with no inspection by my mechanic but I put in writing I could return the vehicle for any reason for 3 days. My mechanic found three minor issues with the van so I took it back to the dealer and they took care of the three issues (about $300) at no cost to me.
I always feel like I left money on the table.
My question is how do you determine the starting price of offers. Is NADA guide a good resource to know where to start? When I started too low with another dealer they would not even counter offer me. I left and they let me. When researching the prices others are starting out at for a similar van in similar condition the prices ranged from 19,999 to 14,999. Thanks for any insight.
AnswerFirst let me say your very clever having done homework prior to shopping and followed some steps other consumers could benefit from, for starters you bought from a Franchise Dealership that sells that make, here is a copy /paste from my website as to why
# 1... All parts needed for re-condition of vehicle will be original parts not after market
# 2... The Mechanics knowledge of vehicle is 100% compared to off makes
# 3... Dealer wants you back buying a brand new same make, and that means deliver the used car with 100% satisfaction the first time
# 4... Should you return with problems you are more likely getting total satisfaction from a dealer selling same brand of vehicle.
# 5... Vehicle will 100% be checked for recalls or service work needed before being sold
# 6... Should you wish an extended warranty it will most likely be from the same Mfg as vehicle you purchased , third party after market warranty's, the risk factor is to high getting satisfaction with your claim, and many are not worth the paper they are written on.
# 7... Its highly unlikely the dealer will sell you a vehicle were " example " the brakes or tires barely passed inspection their goal is to have you back buying the same product and gain you as a service customer
Without going into detail you again did something other consumers could learn from, you walked and the dealer let you, means you hit them where it hurts and from that you learned you would have to up the ante a bit till they bite, you did not take to mechanic but you put in writing should there be issues, excellent thinking.
It's not very often I get positive mail, I could ramble on, but to your question.
If you're shopping in a price range from $15,000 to $ 25,000 being fresh inventory its most likely marked up $3000. to $5000. and a fair profit margin for dealer is $ 1500. to $ 2000. range
Old inventory is considered 90 days old and in many situations dealer will sticker vehicle at or close to cost which means there is very little room for negotiations and the $3000. to $5000. dont apply as you could be looking at a vehicle at cost or below.
I realize as a shopper this leaves you confused , if you ask the salesperson how long vehicle has been in inventory you most likely will get a vague answer as most consumers will not like a true answer to wonder why this vehicle has not been sold in 3 - 6 - or 9 months.
SUMMARY... you can obtain a print out as to how long vehicle in question has been in inventory and you will then know your bargaining power. dont rely on website's telling you true value, consider it a guideline only, its an area where you got to find out on your own , there are many factors, check out my website http://www.usedcartips.org/ if you have further questions feel free to contact me throug the site
Ray
