Dealers lowballing!
08-11-21, 06:49 AM
#16
Lexus Fanatic
iTrader: (20)
08-11-21, 07:14 AM
#17
Pole Position
Thread Starter
Avg in auction for 2018 GX Prem is ~$40K, low is $37K, so that's in line with that Vroom offer. Consider yours needs about $2K or so of reconditioning work. You could try to push your local Lexus dealers for $37/38?
As you're finding, lease buyout can be tricky with the 3rd party sites (carvana/vroom/etc) and non-Lexus dealers right now. Takes a while to get title in many states now with all the limited hours of DMV operations, sales tax implications, etc.
Givemethevin.com and Autonation are other good online appraisal sites.
As you're finding, lease buyout can be tricky with the 3rd party sites (carvana/vroom/etc) and non-Lexus dealers right now. Takes a while to get title in many states now with all the limited hours of DMV operations, sales tax implications, etc.
Givemethevin.com and Autonation are other good online appraisal sites.
08-11-21, 07:17 AM
#18
Pole Position
Thread Starter
Well at least I will have some positive equity to offset the craziness when it comes time to get the 2022 GX.
08-11-21, 07:24 AM
#19
Carvana gave me a quote for $39k and will take my car even though its a lease. Vroom was not willing. Carmax I will have to go to their store and the nearest store is 2hrs away. So I think I will deal with Carvana and they will deal with LFS directly. I mean getting 4 to 5k on a car thats essentially not mine is more than I can hope for.
08-11-21, 07:43 AM
#20
Pole Position
Thread Starter
Hope it goes well, I thought I heard that from August 1, LFS wouldn't work with 3rd parties like Carvana anymore, hope that's not the case!! It's such a hassle. I know that it's just all the banks keeping their respective dealers happy, but it does so at the expense of customer satisfaction.
08-11-21, 08:41 AM
#21
Lexus Champion
When I sold my 2017 UL ES a month or so ago, the offers that I got from local dealers, from CarMax, and from KBB were all very close to each other. Vroom offered a couple of thousand more, and Carvana offered me about $5000 more than the local dealers, CarMax, and KBB. Carvana's offer was also abut $5000 higher than what they had offered me a couple of months earlier. Carvana ended up selling my car within about 10 days for about $2500 more than what they paid me for it. Considering their overhead, I think that was a fair markup over what they paid me for the car.
I suspect that Carvana can offer more for the cars they buy than others because their operational model seems to be very efficient with minimal human labor expense, and a significant portion of their potential profit can come from financing, selling extended warranties, etc.
I suspect that Carvana can offer more for the cars they buy than others because their operational model seems to be very efficient with minimal human labor expense, and a significant portion of their potential profit can come from financing, selling extended warranties, etc.
08-11-21, 09:04 AM
#22
For our recent instance, which I'll have to write up something about, Carvana, Vroom, Carmax and others were all lower than what I eventually got one of my local Chrysler dealers to pony up for our Pacifica. Took some more legwork, but in the end the Chrysler dealer made it pretty quick also. Handed me a check and I gave them the title.
08-11-21, 09:41 AM
#23
Lexus Fanatic
08-11-21, 09:51 AM
#24
This sucks when a trade-in is involved. The 20-25% markup on the trade in price makes you feel bad for taking the hit when you could have done better in a private sale.
The dealer has to bear the burden of additional expenses to get it ready for sale or as a minimum, pass state inspection.
A private sale means you're doing all the promotion and may have to get the car ready for sale. It's frustrating that you're not able to match a dealer price for almost exact or better vehicle. Caving in to the dealer means you're ready to get done with the car on their price terms immediately (avoid waiting on a private sale that could happen in 1 or 3 months or longer). I have had trade ins where the dealer was unable to sell the vehicle for 3 months (went off to wholesale).
Dealers love love well taken care of private cars. It often means the car only needs a super deluxe detail job and it's flipped for sale back on the market. Do this type of deal 5 times a week is a nice pure 4-5k profit (20k-25k weekly, or 1+ million per year in revenue). The general sales manager loves the smell of $$
The dealer has to bear the burden of additional expenses to get it ready for sale or as a minimum, pass state inspection.
A private sale means you're doing all the promotion and may have to get the car ready for sale. It's frustrating that you're not able to match a dealer price for almost exact or better vehicle. Caving in to the dealer means you're ready to get done with the car on their price terms immediately (avoid waiting on a private sale that could happen in 1 or 3 months or longer). I have had trade ins where the dealer was unable to sell the vehicle for 3 months (went off to wholesale).
Dealers love love well taken care of private cars. It often means the car only needs a super deluxe detail job and it's flipped for sale back on the market. Do this type of deal 5 times a week is a nice pure 4-5k profit (20k-25k weekly, or 1+ million per year in revenue). The general sales manager loves the smell of $$
08-11-21, 06:51 PM
#25
Pole Position
Thread Starter
Yea but they are too arrogant to accept less now. So people are turning to other avenues. If dealers have no new and old inventories to sell, u wonder what their plan is. I cant imagine there are enough customers with more money than sense and keep paying inflated prices.
08-11-21, 07:11 PM
#26
Lead Lap
One of the things I like about the Carvana process is the payment on the spot. I've read some reviews about slow or delayed payments from Vroom, but who knows what any of the details are when you read the individual reviews. Right now Carvana's offer on my 2019 X3 is about $1,800, or about 5%, lower than Vroom. I'll wait a while to see if that gap close any over the next week or two.
08-13-21, 04:53 PM
#27
Pole Position
Sell it privately. You'll get more $ and it will simplify your new car purchase/lease.
08-15-21, 10:57 AM
#29
Lexus Fanatic
iTrader: (20)
08-15-21, 12:42 PM
#30
Lexus Fanatic