mgordon18

Is there any rule of thumb for how much a dealer will mark-up a car they brought in on trade?

For example, if a dealer is selling a traded-in car for $50K, can any prediction be made as to how much they paid for it?

jcnesq

I'm not sure there is a rule of thumb, but typically dealer asking prices on used cars are highly inflated. You never know for sure since any trade cost can be skewed by whatever new car was sold, but my guess is typically is a dealer is asking $50K they are probably not into the car for more than $40K, maybe less.

jes999

Also depends on what they put into it after trade. i.e. New tires? Brakes? paint work? Major service to get car up to date? CPOed?

mgordon18

Heh - looks like they didn't do anything extra for this car. The tires are fine-but-not-new. The paint is already in great shape and I believe that the major service that is DUE on the car has not been done.

When I went to look at it I put in a feeler offer in the mid-40s ("There's no way I could get this car unless it was solidly in the $40s") and they sent me packing. The actual asking price is $52,500. But if I can get them down to $48K it might be doable. It's a 2008 C2 in great shape (aesthetically anyway - haven't done any mechanical due diligence) with about 14,000 miles.

daddyscar

I think it's about 10%. Meaning if you wanted to simply sell your car to a Porsche dealer, than they would need to sell it for about 10% more within a few weeks.

mgordon18

Thanks. Looks like a $48,000 offer shouldn't be rebuffed with extreme prejudice - especially since it needs the 4-year major maintenance.

Edgy01

There really isn't a 'major maintenance' at 4 years. All you need to do can't cost more than $1000--if even that.

mgordon18

Hey Dan,

Thanks for the reply. I was under the impression that the recommended maintenance for the 997 was:
Year 1: Oil change
Year 2: Minor maintenance
Year 3: Oil change
Year 4: Major maintenance
Year 5: Oil
6: Minor
7: Oil
8: Major

Lather, rinse, repeat...

Is that not right? Should I be reworking my spreadsheets?

Hella-Buggin'

the four year isn't that major. Plugs, brake fluid, filters, ext..

Oil Change = 200
Brake Fluid = 200
Plugs = 350

mgordon18

Excellent. Good to know. I'd rather be budgeting for too much than too little. I've got my "majors" budgeted at $1700!

sbpsu354

I usually ask what the dealer has($$$) in the car, and often times they tell(show) me. They've also given me an idea of what they're looking to make on the car. This conversation is usually with the sales manager as opposed to the person who took me for the test drive. If the dealer feels you're a buyer, many will work with you in a rather open manner to work the deal. This has been my experience.

Farfelc2s

When I was trying to sell my car, the used car Jerk at Porsche told me unless he makes $5k net, he wont touch anything.

X51

I had a trade value of $25k assigned to mine at a dealer, and they would have listed it around $36k.

X51

Clarifying - not the 997!

KeninBlaine

I think dealers seldom pay more than KBB trade-in value, and then list at around KBB retail. I've succeeded in negotiating down closer to KBB private party price, or a little less. Sometimes they're willing to take a few thousand over what they paid if it is a slow time of year.