Sure one will almost certainly pay more, but not much more. I mean this is up to the buyer how much he pays. If the dealer asks too much and won't budge then one can always walk.

What I was getting at was in this case there's an intermediary so the transaction is not directly an employee buying his boss's car.

The boss makes his best deal with the dealer. Then OP's friend shows up and buys the car. Or not if the dealer is greedy.

What the OP does is what happens anyway, though not often.

In speaking with several Porsche techs at the various dealers I visit I've been told they managed to get trade in cars at good prices. They do not get an employee discount but what happens is a car/vehicle comes as a trade in candidate. It just happens it is a model the car tech is interested in, has been looking for.

The tech -- or maybe his co-worker -- checks the car out for the trade in -- though you can be sure the interested tech will do his own checking -- and car's trade in condition is determined.

The deal is made. The car is accepted as a trade in at whatever the sales department works out with the customer trading in the car.

Then the tech approaches the GM and makes a deal for the trade in car. The dealer say heck yeah and flips the car right now, sometimes in a day. The dealer spends puts out no money bringing the car up to condition to resale the car.

If the car is going to a wholesaler, the dealer doesn't have to have to pay the expense of having the car trucked to an auction site and pay the auction yard's fee.

The dealer gets its money back in no time at all and this goes back into the dealer's operational account to fund more trade ins or buy up auction cars for resale, etc.

There's no reason why a customer, the OP's friend in this case, couldn't do something similar if he's positive the car is worth owning and is aware of what the dealer has in the car and gets there before the dealer has put any more money into the car.

Another way would be for the boss to go to the dealer and see what the best deal he could cut for the new car with his car as a trade in.

The boss can dicker, cry, threaten, plead, throw a fit, whatever he wants in order to improve the trade in number.

IOWs the boss by whatever means he wants to used gets a hard number for his car's trade in value.

Then he calls a halt to the process, asking for a chance to sleep on the deal.

The boss calls up the employee and offers the employee the car for this trade in value.

I wonder though what's to keep the boss from bumping the number up especially if the dealer's trade in offer was less than the boss expected, which it almost certainly will be.

Anyhow the employee now has the chance to buy the car.

But the employee had better be ready to hand over the money pronto -- and have his fingers crossed the trade in allowance was as he expected/estimated beforehand -- or he has to tell the boss 'no' and then the boss has to go back and possibly go through the whole negotiation thing again. And this time the trade in allowance might not be as generous. Or the car the boss had an eye on is gone.

Sincerely,

Macster

 

Just looked up the car on Manheim. Sales indicate an avg of $35-37K for that mileage so I would be shocked if the dealer offered more than low 30's unless this guy buys a lot of cars from them. If he wants to buy this car, make an offer of say $2.5K over dealer trade in value up to $38K. If the dealer offers more, let them over pay and walk away. If they offer $30K, he could steal the car at $32.5K and the owner gets more than he would have on straight trade. It goes without saying that sale should be conditional on a thorough PPI. Not sure why buying from a boss has anything to do with this transaction since if anything breaks after he buys, he just has to deal with it. Never go crying back to the prior owner if you've done your due dilligence.

 

NADA puts trade-in at $36.2. I've found they are very close to excellence and use auction averages so are really close to what a dealer will offer on trade.

Add in the sales tax credit the seller will get on a trade, bump it by $1000 to make it worth the hassle, and make an offer.

Probably around $40K which would be a pretty good deal.

 

This guy's on it.

I have the answer, I'll buy the car and add 3k-5k to the price and sell it to you or your friend. Now, no direct link to boss, perfect!

 

Thanks for the Manheim numbers. They make the KBB numbers kind of optimistic, by a mile.

When the owner walks onto the car lot and makes a serious attempt at making a trade in deal to buy a new car I suspect the numbers you posted will be much closer to what the car's actual trade in value is.

My concern about buying from the buying the car from a boss is not that the buyer will go running back to the boss if anything happens, but the boss might develop a case of seller's remorse and this could affect one's working relationship with this said boss.

Sincerely,

Macster.

 

Macster:

Interesting point I'd never thought of with respect to a sale. I guess I'm too myopic in thinking once a car is gone, it's gone. That's the way it is for me but obviously not all

 

I bought my 01 tt with 24k miles 3 months ago from a co worker who was going to trade it in. The dealer was only going to give him 30k for it. He sold it to me for 32k. His thinking was why give the dealer the chance to mark it up at least 10-15k and sell it to whomever, when he can sell it to an enthusiast who will take care of it and drive it the way it was meant to. I see him on a weekly basis, and its all good. I figure whatever problems come up from purchase date I take care of. I dont see why you would have problems with the boss if you bought his ride, he is the one selling it. Its not like you are having "relations" with them.

 

You got a hell of a deal. I paid 10k more 3 months before you!

 

Yes I did. I was looking for 6 months and wasnt planning on buying till at least january. This deal was too good to pass up. All maintenence was done and new Michelin Pilots were put on 1 month before i bought it . Previous owner gave me all of the records on the car since day 1. Its stock xcept for pss9 that I put on. I think the best deals are from private parties. I got extremely lucky and was in the right place at the right time.

 

I believe to some extent one makes his own luck. You helped yourself by looking for a while and getting a good feel for the quality of the offerings, the prices, and were ready to act when you found a good car at a good price.

Good job!

Sincerely,

Macster.

 

If you think your boss has kept the car in great condition and it passes inspection, I would go with your boss to the dealer and just offer $500 more than the dealer. I've done that with friends. The discount you get will be huge since dealers pay very little for trade ins. You, however, must accept that you bought whatever problems (current or future) and cannot go back to your boss if you want to keep that relationship. I personally would not sell to family or friends...old cars break...that's what they do and people will typically blame the seller for not disclosing.

 

mine had some nice options but not 10k worth on the used market!
for "free" my car came with PSS9's, Passport 9500ci, 997 short shift kit, Fabspeed gen3 exhaust & cats, unknown flash, 7" touchscreen kenwood / garmin / BT / Ipod / etc
I like all the stuff but would not have paid for it myself after the fact.

 

Be careful with the manheim cars, there is usually a reason why they are at auction and the dealerships cant sell them. I had a good friend who was a dealer looking at manheim for me, but it seemed the cars there were beat up cosmetically, even with low miles, and had no service history.

 

I agree with mjk. If a car like ours ends up at Mannheim there is usually a story.

 

Yep, had a P car dealer looking at/in Mannheim. In 6months, not a single car passed through that my dealer felt was up to my standards (or his). Most of the 996tt's at the time seemed to be headed out of the country...

Caveat emptor.

jb