New Mood for Used Car Buyers Too
We've been saying for a long time but it's a great time to buy a car. Apparently people are listening. And they're using our advice to press for smokin' hot deals.
Last week I had to sell our long-term Scion xB and nobody even wanted to come look at it before making an offer. Everyone wanted to negotiate over the phone.
I thought things would change now that I'm selling a more upscale car, our long-term 2008 Mercedes-Benz C300. Boy, was I wrong.
I put it on Craigslist and Autotrader.com for $29,000 voting for quick sale. Before doing that I had taken it to Carmax for a quote. They offered $26,000.
Last night, during dinner, my phone rang and when I picked it up it was a woman interested in buying our Mercedes. She didn't make any preliminary comments or ask if I was flexible on the price or even try to make small talk. Here's what she said:
"I'll tell you what I'm willing to pay and you can take my number and call me if you're interested," She sounded nervous but very determined.
"So, you're just going to cut to the chase," I said.
"Right."
She said she'd been working with the car broker and knew exactly what she wanted, and what she wanted to pay. She offered $27,000. That would be a $1000 improvement over our offer from Carmax.
Until recently, we sold our long term vehicles to Carmax when we were done testing them. This year however, like many Americans, we are looking for ways to maximize our money. Coming back into the used car market, I find it's changed. What's interesting, is it seems that for a near-new cars, buyers are willing to buy sight unseen. No questions about condition level, no coming to your house and kicking the tires, just a phone call and offer. Take it or leave it.
Now, to bring a little closure to my previous blog, I have to report that I finally did so the Scion xB for $12,300. That was only $800 over the Carmax's quote. With that car, buyers might have been put off by the funky color (hypnotic teal green).
Where does all of this leave car buyers? Well, it sure is a buyer's market. Like the woman who wants to buy our Mercedes, you can just name your price and then hang on tight and hope you don't get outbid.
Still, conventional wisdom applies. Make sure you check TMV pricing and use the search functions on autotrader.com to see what other people are asking for their car. Still, you can be aggressive with your offer. That is to say, think about at what price you want to wind up and make a lowball offer knowing there will be a counter offer.
Of course, as a used-car shopper, you need to let intuition guide you to some extent. Pay attention to the signals, such as their eagerness to sell and their flexibility about price.
But above all else, make sure you choose the right car in the first place. Despite what many car shoppers think, it's not all about price. And you're going to have to live with the decision you make for many years to come.
- Posted by
- Philip Reed February 23, 2009, 2:17 AM
- Permalink
- Categories:
- Car Buying, Car Negotiating, Used Cars
- Technorati Tags:
- auto trader.com, craigslist, negotiating, new car buying, used car buying, used car market
Did you sell it to her?
cold called a $2000 lower than asking and you didn't hang up on her?
maybe you're just a softy car seller... the only ones I take seriously are the buyers that want to get to my door asap.
When I sold my car, I asked a reasonable price and I got exactly what I asked for. They asked me what was wrong with it (because of the price). I told them nothing, but I'm not willing to haggle. They came, saw it, bought it.
These games that everyone else seems to want to play, make them as bad as dealers.
Phil, this woman was a joke!
brn-
Thats exactly what I run into on a daily basis as a salesman. The phrase 'buyers are liars' didn't come from thin air.
The people that are buying these days can be worse than dealers can be. "Um yes, I'd like to pay less than TMV for yours but I want more than TMV trade in for mine please, thank youtakeitorleaveitgoodbye."
Why was the woman a joke? She called and made an offer, and it was more than Carmax, so it seems like a decent offer to me. If no one shows up offering more she'll have done well, and Edmunds gets $1000 more than they otherwise would have. If someone beats it so be it, sell to them.
@fadetoblackii
About TMV, if I recall correctly, it is based on average transaction prices. While it is probably decent, you should always aim to beat it. About 50% of the transactions it's based on did. Paying the average price isn't a deal.
Well, she's a joke for several reasons:
1. She didn't even try to contact the seller for a test-drive, visual inspection or VIN/Carfax. I wouldn't make an offer on a car unless I've driven and inspected it.
2. While I appreciate her honesty, I still think it's better be flexible in price. I feel it's always better to negotiate in person than on the phone. And I don't know about y'all, but I wouldn't even an offer until I've inspected the car.
3. And if she was using a car broker, why did she directly contact the seller at all?
blackadder5639, here's why I would respectfully disagree with your assessment:
1. I'm guessing the car was listed with year and mileage, showing that it was still under warranty. Also, when she would actually see the title, she could see if it was salvaged.
2. Why be flexible in price and waste your time and the sellers time. Some people enjoy haggling, but my free time is too valuable to me to spend hours having a back and forth. She gave her best price, and as someone pointed out above, it's the best offer received so far. If you think the best offer you've received is a joke, you might have an unrealistic expectation of the value of you car.
3. You're right on this one. I can't figure it out unless, the car broker only worked the lots and dealerships.
Thanks for the comments.
The reason I write about car selling is to let you know what's happening in the market. And the market seems to always be changing. In the past, I wouldn't take anyone seriously who didn't come see the car. But these last two cars I've sold no one wants to inspect it first. Also, I'm not getting any good offers. You know what? The economy is bad! So in this case, I got a quote from a broker ($24,500) a quote from Carmax ($26,000) and now this woman steps in with a grand over that ($27,000). Which would you take?
I can see not inspecting a newish car when making an offer. You can make reasonable assumptions on the condition of the car. If the car doesn't meet the ad description the buyer would probably back out, even if a deal had been reached.
I think a lot more transactions occur over large distances now too with resources like autotrader, craigslist, and ebay available. So there is another reason visual inspection is becoming less important.
Thanks for the article, Phil.
Compliance and Cowbell, I guess things have changed so much since I bought my car just 2-and-a-half years ago! I've become old fashioned...LOL!
Well, Cowbell, I was referring to the lady's whole approach as a joke, and not her offer. Obviously, her offer is actually good (and now that it appears I'm the old fashioned one, maybe her approach wasn't too much of a joke).
I still think she made a mistake by stating her offer upfront, unless she really wanted to save time. For example, if she had offered $26,500, she still would have made the best offer and could have potentially saved an extra $500!
Phil, I would take the $27,000 if I were tired of waiting. If I could afford to wait, I'd wait for a better offer. Anyway, given the current economic climate, it appears $27,000 is a very reasonable offer; only an ignorant person or one in love with the car would offer more.