I assume its all over the board...or is it?

Do they typically pay around NADA low trade in value then Markup a little over Retail?

Its a bit difficult to haggle pricing without knowing the starting point. I dont imagine the pricing is firm on used vehicles.

I know its been discussed...but im on my phone and didnt want to dig up old posts.

Hard to say. I'd try getting the VIN and referencing some auction values and vehicle history.

I've seen list price anywhere from 25-40% on vehicles above 10k in Texas.

Just got rid of a 2002 jeep - which might not be a good example for normal trade in situation - but got offered $4500 to $5000 trade in by several dealers. Sold it for $9000, which was a real good price for me, probably really had a normal private party re-sale value of $7000 to $8000. So they could have made $3000 on the deal if they were going to sell it on the lot. Reality is they would probably just wholesale auction it due to age and miles (135K) - so maybe they would have only got $6000 at auction?
On a vehicle the dealer is going to wholesale - older model or high mileage - you have to understand that is going to have to go through at least 2 markups before it gets back to retail sale. Dealer has to make something on it at auction and who ever buys it at auction has to be able to make something on it when they sell it retail. So what you get trade in is going to be 2 markups below what you could sell it for yourself. With an newer model, high demand trade in that the dealer is going to keep and re-sell, I would think what you get trade in would be closer (1 markup) to what you could get selling your self.
Just my guess - would like to know if my assumption is accurate???

I price the majority of my vehicles $500-$1,000 over what I have them sold for on the wholesale market, with the exception of the segment of cars that I have which will be sold BHPH.

Markup is different on each vehicle, because it's based on what I paid for it. Some cars I have sold to other dealers for $500 over what I paid and others I have sold for $3,000 over. Just depends on if I got a good deal or not.

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That 25 to 40% over auction price seems to be where most dealerships list their used cars at. They will take less but that's the range they list them at.

When I traded in my Z, according to texags they were going for 7.5k to 8.5k at auction. The dealer gave me 8000 trade and it was out on their lot the next week asking 11,000 for it.

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You can't really base that off one transaction. If you trade in a vehicle for $60k at a dealership they're not going to turn a 25-40% profit. It's not going to be marked up $15k-$25k. It'll probably be marked up 8-10%, but that really depends on the market

[This message has been edited by Titanaggie09 (edited 5/26/2014 2:18p).]

the two topics (trade vs. list) are apples vs. oranges. what they pay for the car is irrelevant to what a dealer can sell it for. trade/purchase compares auction/wholesale value, retail reflects what's currently available to the public. cost plus is a thing of the past, the retail competition should be determining what cars are listed for.

the z is a great example. if a dealer can replace that car at auction for $8000, why should he overpay you for it? conversely, if he can list it for $11000 and reasonable expect to sell it there, why wouldn't he list it for that?

They would probably have to pay to ship the car to the auction and I'm sure the auction charges some fee or commission.

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I assume its all over the board...or is it?

Do they typically pay around NADA low trade in value then Markup a little over Retail?

Its a bit difficult to haggle pricing without knowing the starting point. I dont imagine the pricing is firm on used vehicles.

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This has been my experience.


The last used car I bought was when I graduated HS in 02. I bought a 98 Z71 with 64K on it. The only options it did not have were a sliding rear window, leather and auto 4x4 (it did have the push button though).

I bought from a dealer here in Houston. They had it listed for 21,900 and immediately came down to 20,900. After talking with the sales guy and telling him I knew he could do far better he dropped to 19,900. I again told him that it should be nowhere near that price. Dropped to 19,500. I said thanks for wasting my time and went to leave. He asks me to come back and apologizes. He informs me that they are "selling all day for this price and more" to which I reply that's great but this has been here for 92 days and I wont pay. He drops to 18,900. I loudly announce that he has wasted enough of my time and walk out. A sales manager chases me down and apologizes. Asks what a fair price for the vehicle would be. I tell him I know they shouldn't have paid more than $12,500 which was trade in and that it would be fair for them to make a small profit...

45 minutes later 18 year old me drives off in my new to me truck for $13,400 after taxes.