Trade in or private sell when getting new truck

[Idaboy]

The last [used] truck I bought, the young salesman accidentally had the computer screen tilted just enough for me to see the dealers details.

Truck was bought at auction for $15k. Lot sticker price was $32k. Vehicle was 3 or 4 years old with 36k miles on it.

Agreed, they indeed make money all the time everytime.

How do they get such a great deal at auction?

One thing I have noted is fair amount of full size trucks 1/2 ton that are Canadian commercial/fleet, then 2-3 yrs old end up t dealers here that I assume they get at auction (?) or maybe there are some sort of "dealer only" auctions?....such a game

 

[Ucsdryder]

How do they get such a great deal at auction?

They don’t…

 

[Weldor]

Carvana guy never answered, wholesale or ?

 

[cnelk]

Ive been following this thread for a couple days.

Yesterday I entered my truck into KBB to get a value
[2009 GMC Sierra - 195k mi]

I just received a call from a local dealership and they mentioned they saw I was on KBB about my truck....

 

[Weldor]

Ive been following this thread for a couple days.

Yesterday I entered my truck into KBB to get a value
[2009 GMC Sierra - 195k mi]

I just received a call from a local dealership and they mentioned they saw I was on KBB about my truck....

Interesting.

 

[06 SB]

Depends on your financial situation and the value of your time. My brother who is fairly well off just does the trade in. He would rather just not deal with the time and effort it takes to sell privately. Too many no shows or low ball offers these days. I tend to agree. I recently sold an old 1994 Tacoma with 120K miles. It was in great condition. I had it listed for $5K. I got offered $1000-1500 many times in the week it was for sale. I did sell it for $5000. Every vehicle I have sold privately goes this way.

 

[Weldor]

FB or any other type of classified seem to all have the same compliant's. No-show, low-ball or just plain weird folks. Internet has killed social skills for sure. My word still means something to me. If I say I will be there, then I will. I've sold a few on Craigslist before and your right you just have to weed through the BS.

 

[rbutcher1234]

Unless I personally know the buyer, too much of a hassle and PITA to sell privately. Get multiple quotes (carvana, carfax, KBB) and then either sell
To dealer or trade in.

 

[Ucsdryder]

Ive been following this thread for a couple days.

Yesterday I entered my truck into KBB to get a value
[2009 GMC Sierra - 195k mi]

I just received a call from a local dealership and they mentioned they saw I was on KBB about my truck....

A dealership called you because kbb doesn’t have physical dealers, to validate your kbb instant cash offer you have to take it to a dealer where they’ll inspect what you said checks out and they’ll cut you a check. You’ll probably get 1-2 more dealers reaching out.

 

[roadrunner]

How do they get such a great deal at auction?

One thing I have noted is fair amount of full size trucks 1/2 ton that are Canadian commercial/fleet, then 2-3 yrs old end up t dealers here that I assume they get at auction (?) or maybe there are some sort of "dealer only" auctions?....such a game

There are dealer only auctions. You and I don't get to go to them.

They get good used at a low "wholesale" price and then double the lot price full well knowing you want it for less and they act like they're bending over doing you a favor all the while still making a very high profit.

 

[Laelkhunter]

There are dealer only auctions. You and I don't get to go to them.

They get good used at a low "wholesale" price and then double the lot price full well knowing you want it for less and they act like they're bending over doing you a favor all the while still making a very high profit.

And at these auctions they are buying several at a time so they get better prices.

 

[Ucsdryder]

There are dealer only auctions. You and I don't get to go to them.

They get good used at a low "wholesale" price and then double the lot price full well knowing you want it for less and they act like they're bending over doing you a favor all the while still making a very high profit.

I wish this was true. It’s not. Most dealers operate in the red on auction cars. By the time you pay fees, transport, recon, etc and outbid everyone else, all profit is gone.

Think about it this way…. If there are 100 guys logged into an auction, pretty standard post Covid, and you are the highest bid, that means 99 other guys thought you paid too much. You think its car has 15-20k in profit based off your example, that one of those other 99 guys wouldn’t bid it?

 

[Ucsdryder]

And at these auctions they are buying several at a time so they get better prices.

It’s an auction, whether you buy 1 or 50, you are paying 100 or 250 more than anybody else. There’s no bulk discount. Maybe if you’re buying rental cars and you commit to a bull number then you can get a concession.

 

[Poser]

There are dealer only auctions. You and I don't get to go to them.

They get good used at a low "wholesale" price and then double the lot price full well knowing you want it for less and they act like they're bending over doing you a favor all the while still making a very high profit.

True. Used vehicles have significantly higher margins than new vehicles. You may have trouble negotiating a price n a new vehicle that is in demand, but you can almost always negotiate the price on a used vehicle at a dealership.

 

[cnelk]

A dealership called you because kbb doesn’t have physical dealers, to validate your kbb instant cash offer you have to take it to a dealer where they’ll inspect what you said checks out and they’ll cut you a check. You’ll probably get 1-2 more dealers reaching out.

Yep.
Just got another call

 

[Svivian]

Funny this thread popped up. Just last week I was helping my neighbor who just lost her husband. She wanted to sell his 2017 Toyota Tundra with 47K miles that was garage kept its entire life and mint condition. She didnt want to deal with private sale and took it to three different dealerships in town. Best offer she got was $20k.

I offered to sell it for her and got $32k in 3 days on the market.

Dealerships are not running on tight margins they are in it to make money. She could have certainly negotiated but a newly widowed woman walks in and they sure were nice with their offer.

 

[CorbLand]

Funny this thread popped up. Just last week I was helping my neighbor who just lost her husband. She wanted to sell his 2017 Toyota Tundra with 47K miles that was garage kept its entire life and mint condition. She didnt want to deal with private sale and took it to three different dealerships in town. Best offer she got was $20k.

I offered to sell it for her and got $32k in 3 days on the market.

Dealerships are not running on tight margins they are in it to make money. She could have certainly negotiated but a newly widowed woman walks in and they sure were nice with their offer.

I thought you were going to say she took 20 for it and I was going to be pissed because I would have given her 25.

 

[Svivian]

I thought you were going to say she took 20 for it and I was going to be pissed because I would have given her 25.

Oh trust me i would have cried if she took $20K. Shes an older woman and not dumb luckily. I told her no way we are getting less than $30k. She even had it detailed before she drove it to the dealership

 

[CorbLand]

Oh trust me i would have cried if she took $20K. Shes an older woman and not dumb luckily. I told her no way we arent getting less than $30k. She even had it detailed before she drove it to the dealership

As a kid that grew up with a single mom, it makes me very happy to know you helped her.

 

[roadrunner]

I wish this was true. It’s not. Most dealers operate in the red on auction cars. By the time you pay fees, transport, recon, etc and outbid everyone else, all profit is gone.

Think about it this way…. If there are 100 guys logged into an auction, pretty standard post Covid, and you are the highest bid, that means 99 other guys thought you paid too much. You think its car has 15-20k in profit based off your example, that one of those other 99 guys wouldn’t bid it?

If you say so...