Used Cars

[bradford702]

How do dealerships make money off used cars? Is it just off the markup? Looking a purchasing a used car and was just curious how this works. i know if it is a new car they will sell it for a $100 over invoice (i know but not a discussion for today) so will they sell a used car for say $1000 over what they have it. It is a certified car so I know they have a little money in checking out the car and servicing it but what is a reasonable? I am looking at using their financing because they are offering a good rate.

 

[blacklab]

In reply to:

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[txlonghorn4x4]

That's it in a nutshell. We buy cars from auctions, other dealers, etc., and those we get as trade-ins we pay regional fair market value for, which seems low to most. Our certification process costs anywhere from $995 to $2000/per car, based on what level of mechanical, and cosmetic reconditioning is necessary. Just know, there is a good margin built into a pre-owned car, so hold your ground. Often times the pre-owned manager will bump the value of your trade, as well as knock some off his bottom line. Just curious, what kind of pre-owned car is it?

 

[bradford702]

2006 Lexus GS 300 w/nav 13k miles

I dont want the nav and the livinson sound system that comes with but the wife is holding her ground on wanting that.

I called a lexus dealarship and asked them how much it would cost to look at a used car before I purchased it from an individual just to see what it would cost. He said to put a car through the same inspection a lexus gets to call it certified is $500. Now that would not include any repairs that the car needed.

 

[txlonghorn4x4]

I work for Lexus as well. Are you in Houston?

 

[bradford702]

No but for the right deal I would drive to Houston!!

 

[Napoleon]

A friend that sold cars (new & used) in Austin back in 1995 told me back then that he made more money off of used cars than new cars.