Ever heard of this?

[Jebster]

So my wife and I were looking for a new truck,which we were going to order, priced it out on Truecar, got 2 offers, went to the dealer and settled on the price, no problem there. We went on a Sunday, and they gave me a real lowball offer on my trade. They asked me to come back during the week, when another manager was there, and they could get more eyes on it.No problem. We went back yesterday, the GM took a quick walk around, never looked inside, and offered even less than they had on Sunday, explaining they didn't know what my truck would be worth when the new truck came in. I have ordered vehicles before, and there is a statement in the fine print that the trade is subject to re evaluation at delivery. That is fine. Never had a dealer knock down the trade in value. Seems this guy was skipping a step, speculating what he thought my truck would be worth at delivery, because they admitted they lose money on Truecar deals, and wanted to make up some money at my expense. My truck is low miles, interior is good, no stains, tears, smells, exterior in great shape, etc, and their offer was nowhere near what KBB, NADA stated. Needless to say, we left.

[Fordlover]

NC Hauler wrote:

tplife wrote:
Most dealers won't accept TruCar relationships for that very reason, and any salesman who matches their pricing is going to be out of a job unless he makes the lost profit and costs back on the trade. The opinions given above who suggest otherwise don't know the industry. CarMax is also notorious for lowballing trade-in values and only beat dealers by a small amount statistically. (When between labs I stay busy with a seller's license, I'm GMC and Ford Certified.) If you need to buy a vehicle, get your advice from Consumer Reports. Getting it from where you are reading this right now is not the place.

I'd just as soon read about real life experience's on this forum, and glean from there than trust a rag like Consumers report:R IF I'd listened to them, I'd NEVER owned a Jeep!!Better yet, probably not a Dodge/Ram!! I've owned Jeeps since 1980, and NEVER had an issue. Jeep Wranglers, Jeep Grand Cherokees, Patriot's a Compass and several Cherokees...in my instances....they were DEAD WRONG....as they usually are...No probe with my trucks since 2010 either.

You think a couple hundred people (on RV.net) is a better snapshot of vehicle reliability than hundreds of thousands of experiences collected and aggregated in a scientific manner?

Consumer reports says wrote:


If you think so, then more power to ya. My 2 year old is convinced the earth is flat too, after all, his experience is that he has never walked upside down.

I wouldn't use consumer reports as the end all, be all. It's simply one bit of information. CR simply reports on trends for reliability, which doesn't mean if you buy a Yugo it will be a disaster or buy a Honda/Toyota it will never break. Why people vilify a company who at least makes the effort to be honest and protect the consumer is perplexing.

[Tvov]

2oldman wrote:
Nothing unusual here. Dealers do whatever they can to make as much profit as they can. I bet they hate the internet.

I think these days dealers are very well aware of what the prices are on the internet. Where do you think KBB and Edmunds and all those places get their pricing information from? Dealers! Those "internet prices" already include profit for the dealers. Many places put higher prices on their vehicles on the lot, and if a buyer doesn't look at internet prices, the dealership just makes that much more profit. If you bring up an internet price, the dealer will most likely quickly drop the price on the car on the lot to match - all the while bemoaning that he is not making money and will go out of business. Dealers complaining about the internet is just another selling tactic.

My local Ford dealership prices their vehicles to match what you will come up with on internet searches. Kinda makes the buying process easier, as there is actually less haggling... except for things like nitrogen filled tires! lol!

As to trade ins -- I have many times just traded in an old vehicle because of being lazy. They take it, with all its issues, knock a certain amount off the new vehicle, and I don't see it again.

I have never (yet, at least) had a dealership change their offer for my trade in after we've settled on prices. That would make me walk away from the deal. The only change to this would be if there was some additional damage or wear on the trade in while waiting for the new vehicle to come in. Last time I did a trade in, I was able to park my truck until the new one came in, so it was in the same condition it was when they estimated it.

[Fordlover]

TucsonJim wrote:
Dealerships make money two ways. The first is on the selling price of a vehicle. The higher they can take you, the more profit for them. The second is on the trade in. The lower they offer, the more profit.

I'd suggest that if you're going to purchase using a fixed price system like TrueCar, you sell your previous vehicle via a private party. Once you have the cash in hand, then you can proceed with the purchase.

Whenever you're dealing with a car dealer, you have to be willing to walk away from the deal. Another tactic is to pit two or more dealers against each other.

In general, new car sales doesn't make much profit at all, especially with the internet these days. The dealership makes profit in used cars, and they make money in add ons (aftermarket accessories) and warranties. The service department is also a source of income.

Realities are that if dealerships only sold new vehicles at 300 or 400 dollar profit per unit, they'd probably all go out of business.

[2012Coleman]

carringb wrote:
CarMax has a very honest, no pressure vehicle appraisal department, and you can walk out with a check that day if you take them on their offer. We did it on a Honda Civic, and they offered 2.5x what the Ford dealer did, and was close to what we could have expected for a private party sale.

X2. Take it to Car Max if you don't want to sell it yourself.

Edit: Services like TrueCar and consumer Reports are a joke. The dealer invoice as presented to you is bogus.

Do some research at Fightingchance.com which is run by guys who used to be car salesman. They show you how to pit dealers against each other using nothing but email. For 40 bucks, it's the way I'd buy a new vehicle.

[Lantley]

In my post above I wrote Carfax Should have written Carmax:S

[old_guy]

I have never looked at true car but when I buy a new truck or car I have never given given over $500 over invoice and many times given under invoice. depends on how hungry they are.

[coolmom42]

rhagfo wrote:

TucsonJim wrote:
Dealerships make money two ways. The first is on the selling price of a vehicle. The higher they can take you, the more profit for them. The second is on the trade in. The lower they offer, the more profit.

I'd suggest that if you're going to purchase using a fixed price system like TrueCar, you sell your previous vehicle via a private party. Once you have the cash in hand, then you can proceed with the purchase.

Whenever you're dealing with a car dealer, you have to be willing to walk away from the deal. Another tactic is to pit two or more dealers against each other.

X2 to being able to walk away!!!

X3

[pennysmom09]

CarFax and CarMax....one buys and sells and one provides info....correct?

[NC_Hauler]

Lantley wrote:

tplife wrote:
Most dealers won't accept TruCar relationships for that very reason, and any salesman who matches their pricing is going to be out of a job unless he makes the lost profit and costs back on the trade. The opinions given above who suggest otherwise don't know the industry. CarMax is also notorious for lowballing trade-in values and only beat dealers by a small amount statistically. (When between labs I stay busy with a seller's license, I'm GMC and Ford Certified.) If you need to buy a vehicle, get your advice from Consumer Reports. Getting it from where you are reading this right now is not the place.

Car Fax is paying wholesale value.
They are generally paying what the car is worth with fewer gimmicks than a traditional dealer.
There are only 3 options: sell yourself, trade it in or Carfax
Carafe is a good option to have

I recently saw a commercial for this Car Fax service..I trust you, if you say it's a good option, I'd give it a shot.

[Lantley]

tplife wrote:
Most dealers won't accept TruCar relationships for that very reason, and any salesman who matches their pricing is going to be out of a job unless he makes the lost profit and costs back on the trade. The opinions given above who suggest otherwise don't know the industry. CarMax is also notorious for lowballing trade-in values and only beat dealers by a small amount statistically. (When between labs I stay busy with a seller's license, I'm GMC and Ford Certified.) If you need to buy a vehicle, get your advice from Consumer Reports. Getting it from where you are reading this right now is not the place.

Car Fax is paying wholesale value.
They are generally paying what the car is worth with fewer gimmicks than a traditional dealer.
There are only 3 options: sell yourself, trade it in or Carfax
Carfax is a good option to have

[NC_Hauler]

tplife wrote:
Most dealers won't accept TruCar relationships for that very reason, and any salesman who matches their pricing is going to be out of a job unless he makes the lost profit and costs back on the trade. The opinions given above who suggest otherwise don't know the industry. CarMax is also notorious for lowballing trade-in values and only beat dealers by a small amount statistically. (When between labs I stay busy with a seller's license, I'm GMC and Ford Certified.) If you need to buy a vehicle, get your advice from Consumer Reports. Getting it from where you are reading this right now is not the place.

I'd just as soon read about real life experience's on this forum, and glean from there than trust a rag like Consumers report:R IF I'd listened to them, I'd NEVER owned a Jeep!!Better yet, probably not a Dodge/Ram!! I've owned Jeeps since 1980, and NEVER had an issue. Jeep Wranglers, Jeep Grand Cherokees, Patriot's a Compass and several Cherokees...in my instances....they were DEAD WRONG....as they usually are...No probe with my trucks since 2010 either.

I've purchased almost every car that I've owned since 1994 from the same dealership...Ordered several...was given a trade in price, in writing, which wouldn't lower, unless truck was wrecked...NEVER paid anything down to make the order...Trade in was more than fair, (at almost 66 years of age and having purchased quiet a few cars/trucks sine 1970...I've learned quite a bit over the years and done the research..As stated..if you don't like the deal....walk-away....

[time2roll]

+1 for CarMax

[tplife]

Most dealers won't accept TruCar relationships for that very reason, and any salesman who matches their pricing is going to be out of a job unless he makes the lost profit and costs back on the trade. The opinions given above who suggest otherwise don't know the industry. CarMax is also notorious for lowballing trade-in values and only beat dealers by a small amount statistically. (When between labs I stay busy with a seller's license, I'm GMC and Ford Certified.) If you need to buy a vehicle, get your advice from Consumer Reports. Getting it from where you are reading this right now is not the place.

[Jebster]

It's no problem. We don't need a new truck, more of a want than a need. I just go by the adage that a vehicle will never be worth more than it is today. I doubt they will be calling me. The GM seemed a little torqued off when I pulled out my trade in numbers.