Nego when buying a used car, 09 JGC

[masraum]

We are probably buying a Jeep Grand Cherokee for my mother tomorrow. It's a 2009 Jeep Grand Cherokee Laredo. I don't think it's got any options other than the standard for the Grand Cherokee. It's got 27000 miles. They are asking 21995, and it's a "Certified Pre-Owned".

Kelly Blue Book says it's worth something like $21385. My mother doesn't want to spend more than about $20k, and would like something with a trailer hitch.

I'd like to see if I could get them down to $20k and have them throw in a trailer hitch.

She will be paying cash (writing a check actually).

Does anyone have any tips to help me get the deal done?

[Gogar]

If they are collecting sales tax, ask for $21,385 out the door. That's something like 19,xxx.

[Red88Carrera]

I always tell them what I need to make the deal happen. Cash is a good thing.
I traded in a 2005 F250 gas supercab truck toward a 2005 F350 crewcab King Ranch dually diesel. The asking price was $28900. They offered me $10000 for my truck. I told them that my truck was worth $13500(a little more than the payoff). I told them I would buy the truck if they paid mine off, and lowered the F350 to $24000. No deal. 3 days later they called and offered to pay off my truck, and lowered the F350 to $24700. Done deal! Make sure they know where you want to be, and stick with it. Don't let them manipulate payments.

[kaisen]

Is it a four-wheel-drive, or two-wheel-drive? In Texas, my guess is 2WD.

Most used 2009's and 2010's are rental returns (not a bad thing) and are equipped similarly.
A 2009 2WD with under 30K does $17Ks at auction, but there aren't many out there
A similar 2010 does $18Ks at auction, and there are TONS of them.

Right now the 'old' Grand Cherokee is enjoying tremendous downward pressure in the market because of the new-from-the-ground-up 2011 model.

As always, I can get easily you one in Houston, but it's rare for a Pelican to take me up on my offer to help.

However, since they are very easy to replicate, the dealer should easily justify making less profit. If a 2010 is $18K at auction, they should own one for less than $19K on their lot, inspected, and reconditioned. So it should be easy to be under $20K for a 2010, even easier as a 2009.

Hitches are easy on those. Hidden Hitch, Curt, and Draw Tite all sell Class III receivers (2" square) for $100-150, parts only. They do not require drilling, the frames already have the holes. It takes less than an hour to install one, and a Jeep tech that knows what he's doing can do it in less than 30 mins. It is a easy DIY thing. SO..... do NOT negotiate it into the deal thinking that the dealer is 'eating' what they'll tell you is a $500 value. I'd forget negotiating the hitch and do it yourself, IMHO.

[kaisen]

BTW, I have sold roughly ten vehicles to clients in Houston. For whatever reason, I do well there. Last one shipped was a 2007 Mercedes Benz S550 with 7K miles to a lawyer suprising her lawyer hubby for his birthday.

[stomachmonkey]

Cash is not always a good thing. Some dealers will give you a "better" deal because they make it up on the finance spiff.

Kaisen, will be in the market for a 2010 or 09 Acadia.

I'm up in DFW an have no issue taking you up on your offer.

[masraum]

Kaisen, thanks for the offer. I'm actually in Pensacola Florida at my mother's right now or I'd take you up on that. If we do this, then I need to do it tomorrow. I'm helping my mother buy the car and then she's going to give me her Ford Explorer which I'll drive back to Texas Friday. That's good to know about auction prices. Also, this is at the dealer that originally sold the car, so I'm guessing, that it was a trade-in, but I don't know that for sure.

I've read that dealers try to make up the bottom line in financing, or if you negotiate the payment/financing, then they make their money on the bottom line. My plan is to negotiate the bottom line without telling them that we are just going to pay outright. Also, if we don't do the deal tomorrow, then it's not going to get done at all.

[strupgolf]

Unless you're financing it through the dealer, they want to see cash. If you can write a check for it, then you can dictate the price you want to pay. Money talks. Start low, maybe 18,000, then work up from there. Let them know who the boss is because if they dont know, there are lots and lots more Jeeps just around the corner.

[kaisen]

There is a 2010 Grand Cherokee Laredo 2WD in Pensacola right now. It actually runs at auction tomorrow at 11:30AM EST, Lane 5, Run 22. It's owned/sold by Enterprise. It is a Grade 4.5 of 5.0 so it's very nice (let me know if you want to see the condition report). Has 32,936 miles. Auction estimate is $16,950 plus buyer's fees. One with 28K miles did $16,600 at Pensicola on Dec 9th, but it might not have been as clean.

So even if you want to buy THEIRS, tell them you plan to bid on this one if you can't make a deal with them. Leverage....

[masraum]

Originally Posted by kaisen

There is a 2010 Grand Cherokee Laredo 2WD in Pensacola right now. It actually runs at auction tomorrow at 11:30AM EST, Lane 5, Run 22. It's owned/sold by Enterprise. It is a Grade 4.5 of 5.0 so it's very nice (let me know if you want to see the condition report). Has 32,936 miles. Auction estimate is $16,950 plus buyer's fees. One with 28K miles did $16,600 at Pensicola on Dec 9th, but it might not have been as clean.

So even if you want to buy THEIRS, tell them you plan to bid on this one if you can't make a deal with them. Leverage....

Cool, thanks tons!

The next time I need something in Houston, I'll let you know.

[stomachmonkey]

Originally Posted by strupgolf

Unless you're financing it through the dealer, they want to see cash. If you can write a check for it, then you can dictate the price you want to pay. Money talks. Start low, maybe 18,000, then work up from there. Let them know who the boss is because if they dont know, there are lots and lots more Jeeps just around the corner.

Coworker went to pick up an Infinty FX. He negotiated price. Told dealer he had a check. Dealer upped price because he was not using dealers financing. Dealer would not sell him the car for the negotiated price. Another coworker had dropped him off at the dealer. He had to call a cab to get home.

I picked up a Mazda 3 for a commuter car. Had a difficult time negotiating even tho you can find that car everywhere. First offer back from the dealer manager was the list, I was like WTF, not even an attempt to come down. Got my price but it was only after I walked.

Later on I realized what had happened. Made the mistake of giving the guy some info like my home address. He zillowed my house.

[kaisen]

One thing to watch for with Florida dealers is the documentation fee, or whatever they may call it. Florida is one of few states that do not regulate the additional fees, so some dealers gouge several hundred dollars. So make sure you don't negotiate what you think is a great price only to see a big add-on when it's time to sign papers. Ask what it is up front, so you know how to proceed.

[kaisen]

Originally Posted by kaisen

One with 28K miles did $16,600 at Pensicola on Dec 9th, but it might not have been as clean.

Ha!! Hill-Kelly Jeep in Pensacola was the one that bought that Jeep on the 9th!!
They have it listed in their inventory for $19,982.
2010 Jeep Grand Cherokee New and Used Jeep Cars, Pensacola, Fl Hill Kelly Dodge Chrysler Jeep 1J4PS4GK2AC156333

Use that as leverage as well

[strupgolf]

I'm sorry, what is a zillow, and what does a dealer do with your house? If I was at that dealer wanting to spend 20-40,000, I'd walk. It's MY money and there's lots of cars out there in car-la-land.

[Embraer]

it's a real estate "valuation" site. enter your address, and it supposedly says what your house is worth, along with lots of info like property taxes, date of sale, etc. even google earth pictures

[stomachmonkey]

Originally Posted by strupgolf

I'm sorry, what is a zillow, and what does a dealer do with your house? If I was at that dealer wanting to spend 20-40,000, I'd walk. It's MY money and there's lots of cars out there in car-la-land.

A fairly inaccurate home valuation site. Not sure if he used that one exactly but after he took my info I watched him go to another computer and he entered almost nothing but wrote down stuff that came up. Then he went to the sales manager.

I assume they try to get a baseline on your income.

[BeyGon]

If the dealer wants to sell it to you cheaper when you finance it, make sure there isn't an early payment problem and pay it off the next week. I have done that.
Plus, I was talking to a guy about a Z3 Coup in Houston yesterday and there were at least $500 in extra fees, he said all Texas fees.

[71T Targa]

Originally Posted by kaisen

As always, I can get easily you one in Houston, but it's rare for a Pelican to take me up on my offer to help.

Kaisen, what part of the business are you in? I'm a Minnesota guy as well.

[speeder]

Why on earth people here would rather pay full retail at a dealer when you have a reputable, proven wholesaler on this board is beyond me. My parents had a guy like Kaisen for years who was a broker who got them all of their new cars.

Much cheaper, no jerk-off finance guy or sales manager backing out of agreed deals or adding fees at last minute, etc. He would have bought that same car for you where the dealer bought it and sold it to you for less. Thousands less.

It would be one thing if he just popped-out of the woodwork here with 10 posts but several people here know him in the gravity world and can vouch for him. Including me.

[masraum]

If I had known ahead of time, that may have worked out, but this was very unexpected and last minute with very little time to set up any other sort of deal.