Dealers sticker price

The Mighty Red · 10-06-2008, 12:05 PM

I have found the car I want , its the right colour inside and out has all the options i want ,its in great condition 2004 very low km.....so how much profit has the dealer got on the sticker price??.

Its on the lot for $27999 .........i went to look at when they were closed last thursady and it really does look to be in as new cond........I rang them the following day told the salesman I had looked at it late yesterday (friday)and then offered him $24000 which he rejected with a laugh and said he couldnt even go to his boss with that price so I have come up to $25000 which I told him was my limit ......he said he would get back to me tomorrow (saturday) ....I havent heard from him yet, now the problem is ,I do want the car but I also want the best deal for me.....So is he playing the waiting game to see if I will call him first or is he selling that many cars that he's not bothered??...I am off work today with the weather and would love to go down to the dealership and do a deal but I fear if I do that he will think he;s got me and try to get me to sign top dollar.

Is $25000 a fair price on a $27999 sticker price with a 3 month stat warranty or am I trying to get to much off the price?

Fev · 10-06-2008, 12:12 PM

does it really matter if you go down there. You have already stated that 25k was your price firm. If he trieds 26,500 just say. 25k. he says 26k. say 25k. he will get annoyed and go listen here bub. this car is almost brand new with this that and this. say 25k. if he still refuses walk out. come back the next day and say that you have been able to put another $500 on. will he do it right then and there on the spot.

sounds like a plan!

GreenMachine · 10-06-2008, 12:13 PM

Sounds reasonable... My mother bought a BA II Futurawagon, low k's, immaculate etc from a Ford dealer last week, sticker was $23k, got it for 18 with 12mths rego and a couple of other bits and pieces... They build a fair bit of fat in to the prices. Go to www.redbook.com.au for an indication of what the dealership actually paid for it...

The Mighty Red · 10-06-2008, 12:16 PM

WOW $5k of the sticker price GM , If your mum can that much surely $3k on $28000 would seem fair.......

The Mighty Red · 10-06-2008, 12:25 PM

Quote:

Originally Posted by Fev

does it really matter if you go down there. You have already stated that 25k was your price firm. If he trieds 26,500 just say. 25k. he says 26k. say 25k. he will get annoyed and go listen here bub. this car is almost brand new with this that and this. say 25k. if he still refuses walk out. come back the next day and say that you have been able to put another $500 on. will he do it right then and there on the spot.

sounds like a plan!

Another $500 would be my absolute max ok but I fear if I go to him after he said he would call me I am sending out the wrong signals and he will try to stitch me right up.......

XR Martin · 10-06-2008, 12:31 PM

Be nice if you told us what the car was and its details so we can ascertain whether $25k is a good price.

The Mighty Red · 10-06-2008, 12:37 PM

It s a 2004 Ford Explorer 4x4 4.6L V8 5 speed Auto in immaculate cond with 49,000ks

fantasyxr6turbo · 10-06-2008, 12:37 PM

Quote:

Originally Posted by The Mighty Red

WOW $5k of the sticker price GM , If your mum can that much surely $3k on $28000 would seem fair.......

But $23k for a BA wagon is a bit steep to start with isn't it?

Fev · 10-06-2008, 12:38 PM

It doesnt matter what he does, ignore all of his salesman mumbo jumbo. He wants to sell the car, no matter what(within reason) and i dont think he would risk the commision to sell it for another couple of hundred a few months down the track because he has no way of guarenteeing it will sell any time soon. Your not risking anything, He is risking everything - remember that

ratter · 10-06-2008, 12:51 PM

most salesmans comissions are based on profit levels, he may not even be interested in selling it if it close to cost price

Abacus · 10-06-2008, 12:57 PM

Quote:

Originally Posted by fantasyxr6turbo

But $23k for a BA wagon is a bit steep to start with isn't it?

Yep. Total rip.

You can get a 2006 BF Futura wagon with less than 25,000kms and more than 12 months factory waranty for that price.

Like this one:

BF Futura Wagon

July 06 build. 23,500kms. Asking $23,990. No doubt $22000-$23,000 would see you drive it away.

The Mighty Red · 10-06-2008, 01:01 PM

the sticker price is in line with other Explorers I have seen on the net, If it was a Limited with full leather etc i would expect it to have a sticker price in the low 30,s.....

i guess what I am trying to find out is what his sell price is without walking into the dealership....I should of asked him what WILL he sell it to me for when i was on the phone to him but I wasnt sharp enough in the conversation

There are two other Explorers I'm looking at , one $28999 which is a Limited and another XLT for $25000 but both have more k's on them ......I dont buy cars everyday so i am just trying to get a bit of insight to how the salesman might be thinking , I have only ever bought 4 cars from dealers and payed the sticker price twice both times because the salesman new I was hooked and was going to buy the car even if he put the price up.

GreenMachine · 10-06-2008, 01:02 PM

I put the $5k down to my awesome negotiation skills...

Quote:

Originally Posted by Abacus

Yep. Total rip.

.

Correct, the price was obviously hugely optimistic... I think even $18k is a touch steep - Car only has 40,000k's on the clock though, and a few options. I just felt it was better for her to buy from a dealer, the Ford warranty saved my bum with the FBT (gearbox blowup a week after I picked it up)...

Abacus · 10-06-2008, 01:10 PM

Sorry. I thought The Might Red as talking about a BA wagon.

Didn't notice it was an Explorer.

In which case I have no idea as to pricing.

Sam_Boss260 · 10-06-2008, 02:15 PM

Mighty Red, I recently got about 3 and a half grand off the sticker price on my car. But I had to go up 1,500 also to strike the deal. So without knowing wholesale and reatil values of Ford Explorers, I think that your offer is fair.

Also, the saleman is probably playing games with you, making you wait then jump in proce just to want the car. Remember that. From what I've been told ( a mate used to work in used cars) profits on each car vary between 2,500 to 5,000 in some cars. It all deoends on what they paid for them.

Stick to you guns, in the end the guy has to make a call as to risk the sale or not.

Also, where in the Sunny Coast are you looking? A Ford dealer?

XR Martin · 10-06-2008, 02:15 PM

Explorers dont exactly fly off the lot, you should be able to negotiate a heap off it. Theres still the odd demo one in some dealer lots.

XR Martin · 10-06-2008, 02:25 PM

Send a fax to them with your initial offer on the vehicle saying 'take it or leave it'.

Theres a few on carsales around that price (with a little more Kms) so I would stick to your budget.

The Mighty Red · 10-06-2008, 02:26 PM

Quote:

Originally Posted by Sam_Boss260

Stick to you guns, in the end the guy has to make a call as to risk the sale or not.

Also, where in the Sunny Coast are you looking? A Ford dealer?

thanks for the advice , A brisbane dealer, ..yeah I'll wait a bit longer , the other Explorer which is at a different Ford dealership is $23k drive away maybe I should look at that one a bit harder

DBourne · 10-06-2008, 02:29 PM

Quote:

Originally Posted by XR6 Martin

Send a fax to them with your initial offer on the vehicle saying 'take it or leave it'.

there's no need to be a pr*ck about it. There are ways to haggle the price without being arrogant about it.

Remember that whilst you're right in saying that they do get profit etc, it's not as if you sending a fax saying Take it or leave it is going to make him want to come to the table with you.

If i was a salesman and i got that kind of fax i wouldnt be keen to help you out

The Mighty Red · 10-06-2008, 02:30 PM

Quote:

Originally Posted by XR6 Martin

Explorers dont exactly fly off the lot, you should be able to negotiate a heap off it. Theres still the odd demo one in some dealer lots.

Well the salesman hasnt rang me back so there;s nothing to negotiate atm...but yeah they are a fairly unloved vehicle .....

XR Martin · 10-06-2008, 02:37 PM

Ive known of quite a few people where the fax method has worked. Basically saying I have this much to spend, I want this particular vehicle, what can you do for me etc etc.

When they know what you want and are serious, especially on a vehicle that has probably been sitting on the lot for months and with the petrol price how it is, they should be keen to get rid of it.

Tobey · 10-06-2008, 02:41 PM

Just ring him and ask him what is going on. Don't sound keen, just say something along the lines of, "Im looking at another one and need to know if you accept my offer or not." If he says no, then just say OK, thanks, you may get a call later that day if he is keen, otherwise just look for another one. Don't pay more than you think its worth, otherwise you will regret it.

Abacus · 10-06-2008, 02:43 PM

Quote:

Originally Posted by Sam_Boss260

Also, the saleman is probably playing games with you, making you wait then jump in proce just to want the car. Remember that. From what I've been told ( a mate used to work in used cars) profits on each car vary between 2,500 to 5,000 in some cars. It all deoends on what they paid for them.

That's asking prices. Not what they get.

The industry average gross margin on used vehicles is about 7%. Any less than that and they pretty much can't keep their doors open.

But yes, it varies from car to car. Some mug might pay $4,000 above the right price for a car. The next car might have to be wholesaled at a loss. It's swings and roundabouts, and affected by the fact that any two identical cars they buy will likely be purchased at different prices.

The Mighty Red · 10-06-2008, 05:56 PM

HERE'S A TIP TO ANYONE IN THE MARKET FOR A USED FORD , WHEN YOU ARE CONSIDERING BUYING FROM A FORD DEALER LIKE i AM...
DO NOT BLURT ALL THE DETAILS OVER A PUBLIC FORD FORUM, ESPECIALLY WHEN IT IS A RARE VEHICLE..

I rang the salesman back late this afternoon and I can catergorically state right here and now that he has read this thread!

he told me fairly abruptly after crapping on whether the $25k I offered was drive away or not that the price was $27999 and if I wanted to buy it thats what I would have to pay...........
I am f*cking fuming with this guy.....he gone from getting back to me with an offer of $25k five days ago to being almost rude in his brush off and telling me I will have to pay sticker price.........

The good news is I wouldnt buy the f*cking car from him now if he gave me the price I wanted and a free 5 yr warranty , lesson learnt .

Abacus · 10-06-2008, 06:13 PM

That strange. There's nothing in this thread that should have offended him. It's not as though anybody dumped on him.

**fordomatic** · 10-06-2008, 06:15 PM

definately read the thread then, what a w@nk.

lowriding · 10-06-2008, 06:23 PM

must have got him on a bad day or he sees a weakness and is playing you . $25k would be very doable i would think , that car in Todays sales environment will die on the lot if they wont discount,most likely got it as a trade around the 22 mark or would owe them something around that. expect big further depreciation too on an explorer.

The Mighty Red · 10-06-2008, 06:23 PM

well i spoke to him on three different occasions and every time I was amicable, never rude or pushy and he has treated me in the end like a piece of

The Mighty Red · 10-06-2008, 06:43 PM

Quote:

Originally Posted by lowriding

must have got him on a bad day or he sees a weakness and is playing you . $25k would be very doable i would think , that car in Todays sales environment will die on the lot if they wont discount,most likely got it as a trade around the 22 mark or would owe them something around that. expect big further depreciation too on an explorer.

I'm prepared to take the hit on depreciation, I am plannning to have the car for the long haul....the bad news is I am ready to buy Right Now, I found the right car only to get dicked around .........the good news , Explorers might be rare compared to Territory's but I Will find the right one at the right price..

the good news...... Ross has got Zero chance of getting my money!!...........

Sam_Boss260 · 10-06-2008, 07:06 PM

Well you haven't named and shamed them, you've just asked for advice on here. If they won't budge on the sticker price, then they don't deserve your business. Plain and simple. If the saleman has time to read this during the day, then he musn't be busy selling cars.....