stasek

Haha.... I've got no horse in this race, just being realistic. I'm semi-serious about picking up a new 2020 Sorento. At the end of last month, couple dealers had some very aggressive prices posted online. Within couple days, all the "deals" were gone and now the prices have gone up by couple thousand $$$ (while the manufacturer rebates remained the same). Was there any trunk money available last month? Who knows! Maybe they were trying to hit their monthly numbers? Bottom line is you need to figure out the local market (hence the lowest priced CPO question) and be ready to pull the trigger.

SW17LS

I just got a marketing email from one of the MB dealers I was talking to. They literally said "We're making EVERY deal, even the ones that don't make sense!" I'm going to offer them $14 lol

Gekko

On the 2017 the market will come to my price. It's not a question of if, it's a question of when.

Toys4RJill

That is how it works...sometimes you just have to pull the trigger. If not, it is possible to lose out on a deal

patgilm

You could say that about anything. It will come to your price but I don’t think this car you are looking at will in your timeframe. If you wait around long enough almost every car will come down in price due to depreciation. There typically isn’t a huge margin in used car prices so they will only come down so far and why would they sell to you below auction prices if they can just sell it at the auction for more?

geko29

This is always true. By 2024 the market should come to a price of $18k (what you are effectively demanding) for this 2017 IS. Maybe you can buy it then.

SW17LS

Yep, he's a few years away if those are his numbers.

Gotta think about percentages, what % does a car fall in value every year? The value needs to come down another 25-30%. Thats more than 1 year of depreciation if we're not talking about the first year.

Because thats what he wants lol. Seriously thats the logic, I deal with it all the time. There is no logic, its just ego.

Gekko

Well we have some dynamics in my favor -

1. The 2021 Model inventory will hit dealers soon.
2. It will be the new year soon.
3. The trend is clearly down.

SW17LS

The trend for all vehicles is down, if you wait long enough it will definitely come to your price. You're not actively in the market to buy a car at this time though, you're waiting for the type of car you want to depreciate to what you want to pay, however long that takes. Which is fine, but the advice you've been given was directed at someone who is an active buyer for a car today.

Gekko

Had I followed your advice I would have overpaid long ago.

$30,000
$29,500
$29,000
$28,500
$28,000
$27,500
$27,000

stasek

On that note....


/thread


😂

stasek

Not necessarily...
If you bought it at $30K, that would have meant you felt the price was fair and you were comfortable/happy to pay it. All subsequent price drops would have been moot, since the car wouldn’t have been available.

SW17LS

You'd have a car. By your logic you will ALWAYS be overpaying because with the passage of time the car will ALWAYS get cheaper. Whenever you buy, waiting would always have yielded the same car for less. At some point if you want to buy you have to actually buy and understand that you could have paid less had you waited.

And depending on the market and what else is out there I may or may not have told you to pay any of those prices. The bottom line is all you can do is analyze the market, and make a determination using market data whether something is a good deal. My issue with your approach is your numbers are totally arbitrary, you just made them up and they aren't based in any data...and you've just ignored the actual data people have offered you.

The way they have priced that car is what Lexus + dealers do. They price it real high and chip it down until somebody hits. The flaw in your logic is that you assume that chipping down will just continue and continue until it falls another $6,000 to get it to what you arbitrarily have decided you want to pay. Thats not the case, as was demonstrated to you its in the price range where they can sell it at auction. They're not going to sell it to you for $6k less than they can sell it at auction for. They likely paid more than that for the car as the spread between wholesale and retail is hardly ever that much money. Your logic assumes you are the only buyer for that particular car and thats just not the case.

And guess what? If you got to where you bought it for $22k? That would impact the market and someone else will pay $21,500. And then $21,000. Get it?

Look at the market around you, how does that car now at under $27k compare to other IS's that are listed for sale? Is it high? Low? Similar? If its similar or low and its a car that you like...buy it. Thats how this works.

We have all assumed you're actually looking to buy a car at the current time and that doesn't actually seem to be the case...so wait for the price to depreciate to what you want it to be...it will happen...the % apart you still are from the current market value just suggests thats likely still a year, maybe 2 away so we're not even to the point where its worth discussing.

gengar

It is also inevitable that at some point, someone will pay you to take that car. I guess you should just wait until then?

coolsaber

Yup, same here, always ascertain the market to the best of your abilities and make a decision.