The dealers by me try to make money on trade, f&i, and future service more than a purchase. If you are disappointed keep looking and sell your car locally or look into maybe Carmax
Different approach by Dealer than 2008!
I recently have been looking hard at the Renegade Trailhawk and think I have one bought- haven't seen it yet, it came from another dealer, but assuming it is what it is suppose to be, well...
Not the point of this post. I last bought/dealt with car dealers when I bought my 2008 Compass in the spring of 2008. I have noticed the approach has changing. In 2008, there was just a little play in the MSRP, but dealers were willing to give me above Kelly Blue book for my trade- in other words, they were offering to lose money on the trade to make a new car sale.
In 2016, no so at the three dealership I have spoken with! Everyone one of the is low balling my trade and in fact, one dealership back out on a new car price when I told them I would just sell my trade vehicle myself. The sales rep told me he could no longer let me have the new car at just a few dollars over invoice if the trade was not in the mix. They wanted to give me 2,500 for a Compass that KBB says is worth 6500-7000. Anyone else notice this, or is this specific to my area/the dealership I visit (n=3, so no statistical power to my hypothesis!)
Not the point of this post. I last bought/dealt with car dealers when I bought my 2008 Compass in the spring of 2008. I have noticed the approach has changing. In 2008, there was just a little play in the MSRP, but dealers were willing to give me above Kelly Blue book for my trade- in other words, they were offering to lose money on the trade to make a new car sale.
In 2016, no so at the three dealership I have spoken with! Everyone one of the is low balling my trade and in fact, one dealership back out on a new car price when I told them I would just sell my trade vehicle myself. The sales rep told me he could no longer let me have the new car at just a few dollars over invoice if the trade was not in the mix. They wanted to give me 2,500 for a Compass that KBB says is worth 6500-7000. Anyone else notice this, or is this specific to my area/the dealership I visit (n=3, so no statistical power to my hypothesis!)
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I have no problem with them trying to make SOME money on a trade, but each of the three dealers were offering me about 33-40% of even the KBB trade value (5,500.00).
I believe dealers make more money on most trades than they do on the new car they sell you. The less they offer you for your trade is more money for their pocket. The difference between the trade value and what they ask for the trade when they sell it can be 25% or more.
It all comes down to how accurate your asessment of vehicle condition is vs. KBB, and how accurate KBB's guidelines are vs dealer auction prices. THe answer is the blue book values are not very close. IIRC it's NADA black book where they start.I have no problem with them trying to make SOME money on a trade, but each of the three dealers were offering me about 33-40% of even the KBB trade value (5,500.00).
Then there's the reality of retail. Which tends ot a 100% markup as simple math. $5,500/2 = ~$2750. $2500 is not unusual. If you walked into a car buying business, they'd probably quote you $2700. Or you could sell it yourself.
If they sell at invoice, they make 3% on the vehicle with jeep, and they don't see that until later because it is dealer holdback. There's lots of car buying going on, so they aren't inclined to screw themselves as someone else will walk in the door.
2008, they had to get inventory off the floor or go out of business. Right now, that isn't a problem as the banks have decided the next bubble shall be subprime auto lending and the money is flowing freely.
I was just VERY SUPRISED when a dealer in Iowa pulled an offer from me to sell a new Renegade Trailhawk after I told him I would take my trade out of the equation and just buy the Renegade for what he was offering to sell it...
I get it, but I see 2008 Compasses with higher miles than mine listed and selling for 7-8 thousand in my area! I guess you would be dumb to trade...
I get it, but I see 2008 Compasses with higher miles than mine listed and selling for 7-8 thousand in my area! I guess you would be dumb to trade...
It depends on what you have to trade. I was lucky to have an FJ Cruiser in great condition and low miles. For some reason it is a highly sot after vehicle. I knew with gas prices down and with the FJ's being discontinued, I would never get more for it then now. Like you, I could not get the Jeep dealers to discount the Trailhawk much at all. But I visited as many Jeep dealers as I could to get the best money for my FJ.
They wanted to give me 2,500 for a Compass that KBB says is worth 6500-7000. Anyone else notice this, or is this specific to my area/the dealership I visit (n=3, so no statistical power to my hypothesis!) And this is some of these dealers are crooks
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