Buying a "certified" used car

[pvn]

Dear OOT Geniuses:

I want to buy a used Honda Odyssey. I have been watching the dealers around here for a while, and one nearby has one I like (2004 EX-L, 55K miles, loaded with everything except sunroof and DVD player (both of which I do NOT want anyway)).

I have financing already arranged through my credit union. When I negotiate the price, I tell them and they fedex a check.

My questions are mostly about the negotiation process.

The dealer is asking $20,900 for the van, which is below the "blue book" value of around $22-$24k but above the actual selling prices I'm observing on ebay (comprably equipped vans with significantly fewer miles are going for around $20k). My credit union, which is very helpful, told me that the "loan value" of the van with the options and milage is $16,900 - this is supposedly the amount the dealer would pay if he bought it at wholesale auction, and this is where the credit union suggested I open negotiations.

After that, though, it gets fuzzy. Of course they're going to laugh at the first offer, which is fine, but then they're going to come back with something like $20k, say. What's my next move? The credit union's buying guide literally suggested upping my offer by twenty five dollars. In their example, the dealer's asking price was $22,000, the opening offer was $17,000, the dealer's counter offer was $21,000, and the buyer's next offer was "how about $17,025? Well, $17,030?" The idea being to show that you're a "tough negotiator" I suppose. Does this work? I don't mind walking out on this van if they won't come down on the price, as another one will show up in a week or two, but I don't want to be so unreasonable that they won't deal with me in the future.

What price can I reasonably expect to get out of them, and what is the most effective way to do it?

[Patrick del Poker Grande]

There's nothing wrong with them making some profit. You need to give them a reasonable profit. If they did in fact get the van for $16,900, then I'd go for something like $18k. If they have no problem moving these vans, then they're going to hold at $20k. I suspect that they don't have any problem moving these things - these are pretty popular vans - so you might be stuck with $20k.

[4_2_it]

[ QUOTE ]
these are pretty popular vans - so you might be stuck with $20k.

[/ QUOTE ]

That's the issue. If the dealer knows this van will move at sticker within days you don't have much leverage, but do not let that stop you from trying to negotiate.

I have a 2003 Honda Odyssey and it is the best car purchase I have made yet. You will be very happy with this vehicle. Good luck.

[guids]

Start at that 16.9 figure, if they arent willing to negotiate off that 20k price, you can still buy it, its not like they will tell you no!

[pvn]

The vans are popular, but since the 2005 model year redesign, they aren't as hot as they used to be. This one has been sitting on the lot for a week and a half already, and the sales d00d I talked to on monday wasn't in a big hurry, and didn't make any "this one will go fast" type of threats to push me into acting faster.

[pvn]

BTW, if the vans were really going fast for $21K, wouldn't the wholesale auction prices be much higher than $16,900??

[guids]

[ QUOTE ]
BTW, if the vans were really going fast for $21K, wouldn't the wholesale auction prices be much higher than $16,900??

[/ QUOTE ]

Nope. The dealers auctions usually sell for about 4-5 k less than what the dealer will mark them up at. So that figure is about right.

[BUD]

you'll pay more for a certified honda. It cost the dealer somewhere in the neighborhood of an extra thousand dollars to certify that van. But you are getting extra warranty and an assurance that the vehicle is up to snuff. Around 19000 would be a fair price. if all of the info u have is correct. Where do you live? The market you are in can have a big affect on the price of a vehicle. If u pm me back i'd be glad to verify the auction price of the van. My work has auction reports. Just send me the yr make model miles and equipment and the area u r from.
bud

[pvn]

Thanks Bud, PM sent.

[Jimbo]

[ QUOTE ]
My credit union, which is very helpful, told me that the "loan value" of the van with the options and milage is $16,900 - this is supposedly the amount the dealer would pay if he bought it at wholesale auction, and this is where the credit union suggested I open negotiations.



[/ QUOTE ]

Auto dealers don't loan money and Credit Unions don't sell cars, there is a reason for this. Go back to your credit union and tell them the car salesman says they only pay 3% interest on the money they loan you at 6% so you think you should only pay 3.01% interest and see what they tell you.

Jimbo