+rep thank you
if you don't want to know dealer pricing, then GTFO of this thread
I want to buy you a car!
- Thread starter leadsupplier
- Start date
+rep thank you
if you don't want to know dealer pricing, then GTFO of this thread
Anyone know what the average CarMax mark-up is percentage wise?
I am going to have a car appraised tonight, so just trying to gauge.
-=Chipmunk=-
I am going to have a car appraised tonight, so just trying to gauge.
-=Chipmunk=-
The only time I ever tried Carmax I was selling an 8-year old Honda Civic. Book value on a dealer trade was shy of $3500 and near $6500 retail; they offered $2400. I got a better offer from an actual dealer, but wound up selling it to the third buyer responding to a Craigslist ad for $5000.
CarMax is like the Target of car shopping.
one way to use this wholesale info to your advantage would be to straight up ask the dealer what they have done to the vehicle. If you ask nicely you may even get to see the repair invoices (which are inflated so cut them in half for a more realistic #) and you can kind of get a picture of what they really have into it and most figure in a few hundred for transportation.
If you are using the Manhiem auction reports, you have to be very, very careful with the data that you are looking at. I am sure you understand and have an idea of what you are trying to do, but those numbers can be so far off it is not even funny. I spent 5 years as the business manager for a used and then a new Honda dealership before this and you can't make an informed decision on the number unless you are there.
The problem with Manhiem software, at least in my day, was that you can't tell what was going through in that period of time. You can have a bunch of shitty cars run through the auction with damage and you won't know that. Or you could have perfect cars coming through, which in turn messes with the average. Also, the rarer the car, the more this holds true. Also, seeing a car at an auction and then at a dealership is miles different. Hearing, feeling and seeing an auction car is essential to making an informed decision.
All in all though, you can use that as a base point for your thoughts and expectations. Transports runs about $100, inspection can be from $100 to $1500 on the norm, detailing is about $150. Those are your big expenses.
Being a one man show is tough. Most states have laws about this, as there are very strict processes in which any car lot must go through. When PA enacted a new law, I had to complete about 25 pages of different things about the lots, such as signage, ADA compliance, and so on. So doing his on the side is actually harder then most think then just going and buying cars and flipping them.
I do, however, think you have a good thought process on what you want to do with the data. There is just so much more that goes into the sales process and final price then just the initial cost. I am sure it is something you could put together and possibly use for future negations. Or just buy your car the last day of the month at night. Go to the best salesperson and he will be itching and begging his manager to make a deal so he can hit more bonuses.
The problem with Manhiem software, at least in my day, was that you can't tell what was going through in that period of time. You can have a bunch of shitty cars run through the auction with damage and you won't know that. Or you could have perfect cars coming through, which in turn messes with the average. Also, the rarer the car, the more this holds true. Also, seeing a car at an auction and then at a dealership is miles different. Hearing, feeling and seeing an auction car is essential to making an informed decision.
All in all though, you can use that as a base point for your thoughts and expectations. Transports runs about $100, inspection can be from $100 to $1500 on the norm, detailing is about $150. Those are your big expenses.
Being a one man show is tough. Most states have laws about this, as there are very strict processes in which any car lot must go through. When PA enacted a new law, I had to complete about 25 pages of different things about the lots, such as signage, ADA compliance, and so on. So doing his on the side is actually harder then most think then just going and buying cars and flipping them.
I do, however, think you have a good thought process on what you want to do with the data. There is just so much more that goes into the sales process and final price then just the initial cost. I am sure it is something you could put together and possibly use for future negations. Or just buy your car the last day of the month at night. Go to the best salesperson and he will be itching and begging his manager to make a deal so he can hit more bonuses.
Well the system is better now. They take averages from all of their auctions and compare it to similar vehicles based on milage and condition.
I'd say it's a fairly accurate representation.
I'd say it's a fairly accurate representation.
Hard to find, best i could find was a 94 RHD it's going at a whole sale auction for 16,800 ... auction numbers are usually like 2Gs under that tho
Wow, thread full of fail. As someone who's in the car business, most of you are way off.
Car business is relatively simple, it's got nothing to do with the product, the customer, the mark up, it's all about buying the car right. All cars sell themselves, if priced right they sell, if they're not, the dealers' competitors car sells. The majority of credit worthy consumers are conscious enough to shop around, and thus on the average buy from the best option. If a dealer's buying cars correctly, they'll make money, if they're not, it's a super brutal business.
In terms of how much they make, it all depends on the dealer. The average used car dealer, that sells to normal credit worthy consumers, make money on the front end (mark up on the car), and the back end (gap, points on the loan, warranties/service contracts, etc). The average they net per car, depends on the dealer and niche. There's auto stores selling 200 cars a month making $500 a car, and there's stores selling 20 cars a month making $5000 a car.
Car business is relatively simple, it's got nothing to do with the product, the customer, the mark up, it's all about buying the car right. All cars sell themselves, if priced right they sell, if they're not, the dealers' competitors car sells. The majority of credit worthy consumers are conscious enough to shop around, and thus on the average buy from the best option. If a dealer's buying cars correctly, they'll make money, if they're not, it's a super brutal business.
In terms of how much they make, it all depends on the dealer. The average used car dealer, that sells to normal credit worthy consumers, make money on the front end (mark up on the car), and the back end (gap, points on the loan, warranties/service contracts, etc). The average they net per car, depends on the dealer and niche. There's auto stores selling 200 cars a month making $500 a car, and there's stores selling 20 cars a month making $5000 a car.
I've seen some commercials for 100% Haggle-Free New Car Price Quotes from Local Dealers - TrueCar . It seems like a good site to use for this sort of thing as well.
ok, so you detail cars so you must be an expert ... amirite?
since ur the expert, can u tell me where these dealers buy the majority of their cars? any dealer that's going to be doing volume is going to buy from an auction like Mannheim, or else Mannheim wouldn't be such a monster of a business like it is today.
i see absolutely no value in what you've just layed out in this post. to me, your basically saying that if a car dealer buys a car too close to retail he's not going to make much money - HOLYSHITWTFNOWAYS!
All the prices i've listed here are estimates from Mannheim which come straighgt from Auction Sales data, which is 1000's of 1000's of cars every week. All those prices are below market, and a dealer can still mark them up.
So again, unless you can point out a better example of how this thread is full of fail, then you fucking fail
I wasn't necessarily referring to you. A couple posters claimed car dealers mark up cars $10,000 - no one who actually sells cars does that. And where dealers buy cars? Dude, it all depends, there's so many different types of dealers, and there's no average "dealer", franchise, used, buy here pay here, rent to own, etc. A normal used car lot generates (from my experience at least) 20-30% trade ins - the way I run my businesses, we're so behind book on trade ins, we would never dream of running them at the auction, I'd rather pick up the retail mark up, especially considering most people take better care of their trade ins than the average car at auction is. There's quiet a few dealers (selling say 40-60 cars a month) that don't touch auctions at all. Auctions are not end all be all, and if you think manheim market reports are the basis of everything you're mistaken. Don't get me wrong, I like manheim (besides their ridiculous fees), but every auction is different, from market to market, and from auction to auction.
BTW, I love how you call me a car detailer, yet your gloating because you have access to a Manheim account, relax. And wait, you're selling link building packages? ...forget about it.
And to anyone buying or attempting to buy high end cars at an auction site unseen - be very very cautious. Manheim's condition reports often times miss a lot of stuff. If you're buying a car $40k+ in value, you really need to be buying it in person, with a post sale inspection etc..
leadsupplier - I will be buying something used soon and will hit you up at that time. Thanks for the share.
For the record. Manheim is strictly dealer to dealer. It is not a public car auction. If you have one in your area, go there on auction day and out front you can buy a day pass from a dealer that is leaving for $5-$20. You then use that ID to gain entrance. Once inside, there are also sheets and printouts for pricing from previous auctions in the area - at least there used to be years ago. While there, find a dealer that will buy a car for you for a slight mark-up, say 5% or a set fee. Or, just go to a small dealer, the little 1 car at a time guys, and they will do the same for you. They will buy a car for a slight markup. The key is sneaking in to approve the purchase - not allowing them to buy just any car with you on the hook. They will tell you that non dealers are not allowed into the auction - now you know how to get in.
Each area also has a highline auction at one of the Manheim sites periodically, I think in Riverside, CA its once a month, I forget, but it is a special day. That is the day you see all of the Mercedes, BMW, Ferrari, etc auctioned. Regular auction days is all regular cars - very few high line.
For the record. Manheim is strictly dealer to dealer. It is not a public car auction. If you have one in your area, go there on auction day and out front you can buy a day pass from a dealer that is leaving for $5-$20. You then use that ID to gain entrance. Once inside, there are also sheets and printouts for pricing from previous auctions in the area - at least there used to be years ago. While there, find a dealer that will buy a car for you for a slight mark-up, say 5% or a set fee. Or, just go to a small dealer, the little 1 car at a time guys, and they will do the same for you. They will buy a car for a slight markup. The key is sneaking in to approve the purchase - not allowing them to buy just any car with you on the hook. They will tell you that non dealers are not allowed into the auction - now you know how to get in.
Each area also has a highline auction at one of the Manheim sites periodically, I think in Riverside, CA its once a month, I forget, but it is a special day. That is the day you see all of the Mercedes, BMW, Ferrari, etc auctioned. Regular auction days is all regular cars - very few high line.