How much do you "move" on price in selling a car?

VaSteve · 07-14-2005, 04:46 PM

Just curious, I have a Honda on cars.com that has been there for 2 weeks. It's an 05 with 7K miles. Probably not the best time to sell a car over the summer as the dealer is giving a sweet deal on 05's with 0 miles. As it's a Honda there are no other options to add. It would be virtually identical to mine (with 0 miles).

The price on cars.com is about 1.5K less than the dealer, and more than I owe (but not a lot).

A guy finally looked at it this evening and said he would make me an offer tommorow (pending financing, I guess), but he didn't want to insult me. Whatever, it's a Honda I have no love for it.

I know my bottom number (carmax appraised), but would rather acheive more. He kindly "noticed" to me that it had been on cars.com for a "while".

Noone wants to feel taken and I'm not dying to sell it for a sacrifice or anything but I do want it gone to get out of the payment and buy something else. I'm not much of a negotiator on selling (do better on buying) and won't do well on a trade (been to carmax).

Just curious to see your strategies.

techweenie · techweenie's Garage

I usually figure 5%. if both parties yeild a bit, both have a 'win.'

You also have to consider the 'carrying cost' of insurance, etc.

It's a good thing you have a standing offer from CarMax, 'cause it sounds like this guy is going to lowball you.

VaSteve · 07-14-2005, 05:21 PM

Quote:

Originally posted by SoCal911SC

By defination, stuff priced at market price sells quickly and easily.

LOL. That's why they call it market price! It's a weird market. The 05 Hybrids have no KBB values yet. Odd. There is an identical 05 with 7K miles selling for $3K more at a dealer. This is with the auto trans, I'm sure.

M.D. Holloway · 07-14-2005, 05:22 PM

Stand firm - don't flex. The car will sell...eventually.

VaSteve · 07-14-2005, 06:00 PM

The guy moves quick. Just emailed me his "only offer" - a lowball of $1400 off what I was asking. Which will pay off the note, but leave me with little else. (Still more than carmax offered - which won't pay off the note).

While I will likely reject the offer on principal (I don't like how he approaches "negotiation") I sent him an email back to figure out how he arrived at the price since there's nothing wrong with the car.

Interesting.

Rob Channell · 07-14-2005, 06:28 PM

Not to push you, but one thing to think about is what will happen to the 05 prices when the new 06 cars are being sold new for the same money? That will be happening in just a couple more months. I probably wouldn't buy a used car to save only 1.5k if it were me. Of course I'm not in the market for a Honda at the moment either. I'll be selling one here shortly, but mine was 10 years old when I bought it and is worth less than $1000 today.

If it were me I'd probably try to negotiate a little with the current potential buyer. Maybe he's got something interesting to offer as a partial trade. A good used TIG welder would make up that difference in a heartbeat. Wishful thinking, no doubt, but it never hurts to ask.

M.D. Holloway · 07-14-2005, 06:35 PM

Don't bend! Are you on a time frame? If not, you don't have to respond to Mr Lowball. Don't ask him for an explanation, why waste your time with his logic.

Jay H · 07-14-2005, 07:17 PM

Quote:

Originally posted by SoCal911SC
I tend to price a car I'm selling fairly aggressively, because I don't like to waste time and have a bunch of people coming over in order to squeeze the last few dollars out of it.

I'll also generally price it at a point where there is a natural "middle ground." For example, if I want $7500, I'd price it at $7,900, which gives the buyer the ability to counter at $7000 and both parties settle at $7500.

I think the key is determining what the car's real, true private party market value is. You can do this by looking at other ads, calling on ones that have actually sold to find out the sale price, etc. Then price yours accordingly.

By defination, stuff priced at market price sells quickly and easily.

I agree 100% with SoCal.

Counter offer back to the guy that low balled you by $1400. If you will not take his offer, say something to the effect of "Thank you for your offer. I'd be happy to sell the car at $X,XXX if you are interested". (make $X,XXX your bottom dollar) Throw the ball back in his court. If he accepts, you sold a car. If not, move on and wait for the next guy that offers you a fair price.

Steve Carlton · 07-14-2005, 08:04 PM

I would think with no KBB value, your only frame of reference would be the real bottom prices people are getting on '05s, and if there's a low APR to suppliment a new one's attractiveness? Plus other comparable used ones, which I would expect to be scarce and often overpriced. Shop a new one at carsdirect.com and see if there's an APR on the new ones, then price lower to make yours worth it. 2 weeks isn't a long time on the market. I always price above my bottom line to allow the buyer to get a concession. If they don't get one, they seem to walk away often.

Jims5543 · 07-15-2005, 04:00 AM

It sounds like you are almost upside down in the car. I would have grabbed the offer quickly. This would have had him thinking he offered too much, then you win at the head games and sold a very close to upside down car.

Rob makes a good point, the '06's are right around the corner. If you can get out of the car without damage, do it.

VaSteve · 07-15-2005, 04:36 AM

Quote:

Originally posted by Jims5543
It sounds like you are almost upside down in the car. .

Almost. But this offer would get me out of the car, which is fine. I am negotiable on the price, but his "my-only-offer-take-it-or-leave-it" attitude is what bugs me about it. Maybe he is negotiable, this is his tactic, I just don't care for it.

Jim, I think you're right. It is just a head game.

wludavid · wludavid's Garage

Personally, I like the "my only offer" method. Too often sellers are really delusional about what their car is worth. Private sellers can't sell a car for as much as dealers can, because of the security that comes with buying from a dealership. I think sellers look at the asking price of cars like them at dealerships near their house and knock off a few percent and go with that. What they don't realize is that the dealer will likely come down 15-20% from their asking price, so a private seller needs to be down in the 25%-under range.

I'm sure people I've tried to buy a car from complained about me lowballing - but I just determined for myself what I thought the car was worth and offered that price. Haggling over a price isn't really negotiating anyway - that implies that the services and products offered are going to change as the prices move around. Car "negotiation" is really just price splitting. So I don't do it.

Then again, he could just be a jerk trying to lowball you. Who knows?

turbo6bar · 07-15-2005, 05:04 AM

Quote:

Originally posted by Jay H
Counter offer back to the guy that low balled you by $1400. If you will not take his offer, say something to the effect of "Thank you for your offer. I'd be happy to sell the car at $X,XXX if you are interested". (make $X,XXX your bottom dollar) Throw the ball back in his court. If he accepts, you sold a car. If not, move on and wait for the next guy that offers you a fair price.

Yup, yup. This isn't a Maserati with logbook from the Lemans 24 hr. It is just a commodity. The lowballer doesn't care if you like his style. He only cares about getting the car at his price. Counter, and if he balks, you walk.

Jims5543 · 07-15-2005, 05:36 AM

Quote:

Originally posted by VaSteve
Almost. But this offer would get me out of the car, which is fine. I am negotiable on the price, but his "my-only-offer-take-it-or-leave-it" attitude is what bugs me about it. Maybe he is negotiable, this is his tactic, I just don't care for it.

Jim, I think you're right. It is just a head game.

Take his offer. You sold the car. As far as the head games..... Rub your balls on the stick shift and smile as he drives away. Then move on with your life and never buy a brand new car unless you plan on keeping it a long time. For short term ownership buy 2 year old cars.

Hetmann · 07-15-2005, 07:24 AM

Exactly. This is a commodity car and unfortunately you are trying to get rid of it during its steepest depreciation. I have no argument with you or you logic, but that's just a fact in the marketplace. At this point the longer you wait the more value it loses. I'd be looking at a new one unless the price differential was significant. Why take a chance on an unknown? If your primary consideration is financial, keep the car and get your use out of it.

304065 · 07-15-2005, 07:38 AM

I always replace the shift knob on every car I buy for this very reason.

VaSteve · 07-15-2005, 07:53 AM

Quote:

Originally posted by john_cramer
I always replace the shift knob on every car I buy for this very reason.

Thank you all for the advice.

kycarguy 935 · 07-15-2005, 11:05 PM

Quote:

Originally posted by john_cramer
I always replace the shift knob on every car I buy for this very reason.

Thats too funny...lol

azasadny · azasadny's Garage

I always have a "no lower than" number in my head when I set a price for something I'm selling and it's usually 10% lower than the asking price. Sometimes the asking price is firm and I will not dicker on it...

Big Ed · 07-18-2005, 04:12 AM

I hate selling my cars, just do it when it makes sense versus dealer trade ins. I try to be very cognizant of what my time is worth in administering the transaction -- I generally don't have long negotiations as the endless emails and phone calls of stupid and not-so-stupid questions are a distraction.

As such, I try to price the car at market value and accept the first reasonable offer. I would actually appreciate the buyer that aggravated you -- he's offered more than Carmax did, and more than you owe. That'd be enough for me to take the money and run.

The question to ask yourself is, I think, is it worth a few hundred dollars extra to potentially hold the car for a few weeks or months and deal with other buyers?