Car Dealers

[Nightcap]

I brought my 2015 vehicle in to the dealer for a repair (under warranty). While I was waiting, a rather sweaty young man came up to me and introduced himself. He was a salesman, and he really needed my exact car. Would I be interested in selling it and getting the 2017 model at the same monthly cost?

He seemed new, so I let him down gently. (Sorry, you don’t have anything on the lot that I’d be willing to trade for.) But I have to wonder just how bad the car market is getting. New car sales have been pretty flat since 2015, and so far this year, used car sales are down about 5%. The only reason I have a car loan at all is that it’s at 0% - apparently the dealership gets a kickback for financing through the company, so even at 0% it’s more profitable to them than a cash deal.

But I have to wonder. Why would anyone want to sell a two-year-old low-mileage car just to start the clock on loan payments again? If I were that kind of person, I’d have leased. Does this “I need your car” story actually work on anyone?

[braumeister]

Quote:

Originally Posted by Nightcap Does this “I need your car” story actually work on anyone?

It must. We get that kind of offer in the mail all the time.

Haven't had a car loan in over 30 years, but they desperately need cars just like ours (whatever it might be) and are offering tremendously attractive deals.

Some people just love driving a newer car, I guess.

[ExFlyBoy5]

Quote:

While I was waiting, a rather sweaty young man came up to me and introduced himself. He was a salesman, and he really needed my exact car. Would I be interested in selling it and getting the 2017 model at the same monthly cost?

There's the rub. Sure, the monthly cost may be the same but instead of the remaining 13 payments on your 2015, you will have 60 payments for the shiny new 2017!

Not only to mention, there are A LOT of low mileage lease cars that are hitting the market right now...so I don't think there are many dealers looking for a "one of a kind" Camry.

My much loved Infiniti is closing in on 100K miles and I was debating selling it for something new(er). After running some numbers, I determined that buying new (or newer) is a terrible idea so I just spent a little money "freshening" up the current ride and will continue to drive it for the foreseeable future. I am guessing that since I put less than 5K miles on it a year and it sits in a climate controlled garage (garage is below grade so it stays about 68 degrees in the summer and 60 degrees in the winter) it could very well last me many more years. I do wonder though about airbags...supposedly they need to all be replaced at the 10 year point. I can only imagine how much that could cost!

I will go to the stealership on occasion to get a steeply discounted oil change and I have never seem a salesperson in the waiting area. I am not sure if this is policy or what...

[Walt34]

Quote:

Originally Posted by Nightcap Does this “I need your car” story actually work on anyone?

Yes, it works on the SIL that I refer to here as "Spendarina". Rather than spend $250 on a brake job for her "old" car (two or three years old at the time) she bought a new car because the payments were "only $15/month more." I didn't ask her how many more payments she would be making.

[JoeWras]

This brings back a story from when I was dating my DW. DW went to dealership for repairs. Turns out the engine had compression issues: very serious. This was not bogus, I suspected it based on my test drive and the noise it was making.

Salesguy cruises the waiting room just after DW got the news. He asks, and I quote: "What's the matter little lady, you look like you lost your best friend?" She absent mindedly told him that her car was dying.

She said you would not believe the look on his face, as if he won the lottery. Luckily, DW is a tough cookie and told him to take a hike after he started the full court press.

I didn't know that dealers still did this. Many don't allow it because they now make their real money through over-priced service, and they don't want to tick off the customers in this way.

[ExFlyBoy5]

Walt, I just noticed your sig line and I LOVE IT!

Quote:

I heard the call to do nothing. So I answered it.

My DW often have disagreements as what the difference is between being leisurely vs. being LAZY. I think it has something to do with her choice to continue to w*rk whereas I actually prefer to live your sig line.

[Car-Guy]

Quote:

Originally Posted by braumeister Haven't had a car loan in over 30 years, Some people just love driving a newer car, I guess.

I love newer vehicles. (well some of them) My daily drivers are all less than 3 years old. Once the new car feel wears off, it's off to the used car lots (usually). Yes, new car dealers like me, a lot. A couple of them call me every few months asking if I'm ready to trade. They always seem to have a "special" deal just for me . I'm not sure they understand, it's not the deal, it's the particular car that interest me. Although I don't pass up on discounts and I will haggle for the fun of it.

I love a lot of older (pre ~1973) vehicles too. It's the ones in-between ~1973 and ~2015 that I don't care for to much. BTW, it's been 30+ years since I've had a car loan too.

[JoeWras]

Quote:

Originally Posted by Car-Guy I love newer vehicles.

You are Car-Guy, after all!

[Car-Guy]

Quote:

Originally Posted by JoeWras You are Car-Guy, after all!

Probably has something to do with it.

[Nightcap]

Quote:

Originally Posted by ExFlyBoy5 There's the rub. Sure, the monthly cost may be the same but instead of the remaining 13 payments on your 2015, you will have 60 payments for the shiny new 2017! Not only to mention, there are A LOT of low mileage lease cars that are hitting the market right now...so I don't think there are many dealers looking for a "one of a kind" Camry.

Yes, I've paid the steep depreciation of the first couple years, now I get to do it again!

And it's not like car models change that much in two years. The Nissan Rogue has added "Siri Talk" (not full CarPlay, which might pique my interest), and automatic braking (my model just alarms me that I'm closing too fast on something in front of me). These are options, of course. Otherwise, the 2017 is exactly the same as the 2015. It sounds like an expensive way to enjoy the off-gassing of volatile organic compounds (new car smell).

[Nightcap]

Quote:

Originally Posted by Car-Guy I love newer vehicles. (well some of them) My daily drivers are all less than 3 years old. Once the new car feel wears off, it's off to the used car lots (usually). Yes, new car dealers like me, a lot. A couple of them call me every few months asking if I'm ready to trade. They always seem to have a "special" deal just for me . I'm not sure they understand, it's not the deal, it's the particular car that interest me. Although I don't pass up on discounts and I will haggle for the fun of it. I love a lot of older (pre ~1973) vehicles too. It's the ones in-between ~1973 and ~2015 that I don't care for to much. BTW, it's been 30+ years since I've had a car loan too.

Personally, I find the negotiating process stressful. I like to do my research, find the right car, and then stick with it. I made only one terrible mistake: I bought a Honda Element. It's a fine city car, but very uncomfortable for long-distance driving. I like to tease the DW by saying it had a persistent annoying high-pitched whine on the right side, but in truth both of us came to loathe it. Even the cup holders were poorly placed. When I ended up with a lapful of coffee, I decided that it was heading for a trade-in even though it was only two years old. (Fortunately, the neoprene seat covers and rubber floor meant it was easy to clean for resale.)

[jollystomper]

Quote:

Originally Posted by Nightcap But I have to wonder. Why would anyone want to sell a two-year-old low-mileage car just to start the clock on loan payments again? If I were that kind of person, I’d have leased. Does this “I need your car” story actually work on anyone?

If it didn't work enough to generate noticeable profits, they would not try it.

The last time I brought DW's car into service, I was also approached by a salesperson. While DW's car is 6 years old it only has 40K miles on it (we did but it used 4 years ago and have only added about 327K miles). He tried to convince me that the car had great trade-in value and was willing to give some % over KBB value if I wanted to trade it in for a new car.

A lot of people I know look at the monthly payment as the cost of a car. So they would leap at at deal like this. In their mind, they are paying the same for a brand new car. Extending the years does not register.

It is very similar mindset to those who think as long as they can afford the minimum credit card monthly payment, they are doing fine.

[Teacher Terry]

Our 2 cars have low miles so dealers call and mail us stuff all the time. I told them by the time I am done with them they will be heading for the junk yard.

[Meadbh]

My car is coming up to 5 years old. Every year I get a letter from the dealership offering me a "special" deal on next year's model for the same or lower monthly payment. I haven't had any monthly payments for the past two years, but that doesn't stop them from trying.

[aja8888]

One of my friends is about to sell his 2013 Camry LE (top of the line) with 32,000 miles on it because he wants one with collision avoidance.

He is divorced, 68 years old, non-smoker, the car had oil changes every 5 K miles,he just put new Michelin's on the car, and it never had more than two people in it. The list on the car new was just over $30 K, and the dealer is offering him $12.5 K for it. The new one is $35 K.

I'd love to pick up the 2013 for that price and maybe I'll offer him $13 K for it. Granddaughter in college could use a much newer ride than her 2005 Ford with 165 K on it.

And yes, I get those "we need your car" letters frequently too!

[Car-Guy]

Quote:

Originally Posted by Nightcap Personally, I find the negotiating process stressful. I like to do my research, find the right car, and then stick with it. I made only one terrible mistake:

Well I don't really look forward to it, but I've bought and sold so many cars (often several a year) I just look as it as part of the process (or hobby in my case). In many ways buying a older car (collectable) is harder to come up with a good price. Condition of any restoration work, mileage, mods, engine and transmission combo's, wheels, and even color can have significant impacts on the price. Often the seller (and restorer) has put far to much time and money in the vehicle building it the way "he" wants it and not the way the buyer (e.g. myself) might want it. I've been on both sides of the trades so it can become a little emotional.

New cars are a lot easier to me. Lot's of good info on pricing, comparisons, etc on the net. Not a lot of customization for the most part. Even if you order one built to your specs. It's all standardized. Pricing is pretty easy to get within a few percentage points of what the market is really paying, before you visit the dealer.

[mn54]

Quote:

Originally Posted by aja8888 One of my friends is about to sell his 2013 Camry LE (top of the line) with 32,000 miles on it because he wants one with collision avoidance. He is divorced, 68 years old, non-smoker, the car had oil changes every 5 K miles,he just put new Michelin's on the car, and it never had more than two people in it. The list on the car new was just over $30 K, and the dealer is offering him $12.5 K for it. The new one is $35 K. I'd love to pick up the 2013 for that price and maybe I'll offer him $13 K for it. Granddaughter in college could use a much newer ride than her 2005 Ford with 165 K on it. And yes, I get those "we need your car" letters frequently too!

I assume you meant XLE. the LE is the entry level model. Nice car that should last many more years. Worth a lot more than 13k.

[Texas Proud]

Quote:

Originally Posted by aja8888 One of my friends is about to sell his 2013 Camry LE (top of the line) with 32,000 miles on it because he wants one with collision avoidance. He is divorced, 68 years old, non-smoker, the car had oil changes every 5 K miles,he just put new Michelin's on the car, and it never had more than two people in it. The list on the car new was just over $30 K, and the dealer is offering him $12.5 K for it. The new one is $35 K. I'd love to pick up the 2013 for that price and maybe I'll offer him $13 K for it. Granddaughter in college could use a much newer ride than her 2005 Ford with 165 K on it. And yes, I get those "we need your car" letters frequently too!

Interesting.... I put this in KBB and added leather... not sure what else it might have... but in good condition it says it is worth $12,300....

Since you know the guy I would say it would be worth more than that...


Remember that if he trades it in to the dealer he gets his taxes back... something like 6.5% or so.... if that is correct he is getting $13,300+ off the price of the new car... you should offer at least more than that...

[Koolau]

Quote:

Originally Posted by braumeister It must. We get that kind of offer in the mail all the time. Haven't had a car loan in over 30 years, but they desperately need cars just like ours (whatever it might be) and are offering tremendously attractive deals. Some people just love driving a newer car, I guess.

Aha! Reason 23 for driving an 18 year old car. Nobody tries to get me to upgrade to a 16 year old car! YMMV

[aja8888]

Quote:

Originally Posted by mn54 I assume you meant XLE. the LE is the entry level model. Nice car that should last many more years. Worth a lot more than 13k.

Yeah, it's probably XLE not LE. It;s the highly optioned model. Thanks.