I'd say if they offered you less than $19K, you are probably getting a raw deal. What did they offer you as a trade?
What dealer is selling GLI's for invoice? They offered $22k. To tell someone their car dropped $5k or 20% in 2 months is rape. They will list it for $26k, who are you kidding at $24k? Cars less than 1 year old sometimes cost the same if not more than invoice on a new one because you get a longer warranty, and in some cases, better interest rates....
So we obviously have different opinions, but losing $5k in 2 months on a car that is super desirable and still relatively hard to come by, in my opinion, is rape.
Now you, as the customer, want to get a good deal on the used car and knock off $500-1000 off the price of the car, so with that in mind, they should list it at $27,000, so they can reach their profit goal in the end.
So now Joe Shmoe of the street sees a used GLI for $27,000 next to a brand spankin new one with a sticker price of $26,835. Which one do you think he chooses?
By the way, I work in sales at a VW dealership, and they offered me (an employee) a round figure of about $20K on my 2011 Golf TDI with 5000 miles which had the same sticker price as your GLI. Still think you got "raped"?
I think you are asking a fair price at $24,000. I just think you are being a little naive in your thoughts of the dealership. Do you get a tax credit on trade-ins? Here in PA, you would get sales tax savings at 6%, so your trade-in of $22K would really equal $23,320 after tax savings. Keep that in mind depending on your state laws.
I do get sales tax credit, but no longer interested in a vw product now that I see they have the worst residual values of any brand I've ever bought. And that $22k is probably $20k at a non vw dealer.
Further, I do believe that my 3 month old gli is worth significantly more than $2k above your year + old golf.
And lastly, to further prove my point, these greed bags made a few grand off the gli, want to make $3k off my trade and another few grand off the replacement I purchase? All at the expense of my hard earned money....
Not sure why you have such a hard-on for stealerships....especially If they are low balling you too.
Last edited by illirep; 01-04-2012 at 07:21 PM.
-You are at the worst part of your depreciation curve. Can you imagine the hit you'd be taking on a higher end car at this point? I still think you are getting an aggressive trade-in amount. What do you think is fair? That is the most important question that I have...
-While I agree that your GLI may be worth more than my 6 month old car, I wouldn't call it significant, maybe $500.
-I don't have a hard-on for dealerships. I just laugh when I see "stealership." They are a business that turns a profit, deal with it. I bet you don't care about the profit margins on Monster cables at Best Buy ($50 for a $2 cord) or the shirt you get at the mall ($30 for a $3 cost) Sure you can get parts and service cheaper elsewhere, but people still go for the specialized service and the convenience. You are welcome to go elsewhere for the same services, just don't whine about it.
I didn't trade mine in at the offered price because it didn't make sense to do it yet. I have to wait until I get ahead of the depreciation curve.
-Did you pay sticker price on your car? If so, they made $1000 (VWs don't have a lot of mark-up). If you paid more than sticker, you didn't do your homework. And yes, they want to make profit off of your trade, they don't just keep cars on their lot and pay interest on them just for the heck of it.
As someone in the business, I thought you would be aware of something called 'hold back'. The gap between invoice and msrp is not even the better half of the profit a dealer makes on a new car sale. Further bonuses and incentives also exist, not to mention the margin on the financing.
I have no problem with dealers making a profit. My point is that this dealer will be clearing $10k on one customer in a three month span, if I let them. That is pure greed and poor customer loyalty. Not going to convince me or anyone else otherwise.
Hmm... apperantly he didnt like what KC had to say... It blows me away what people think Dealers make on the sale of cars.
I am posetive that this guys salesman did not even make enough to compansate himself for having to deal with such a thumbsucker....
~ Dub Town ~