Topic: Used Car price in its branded dealership vs others

[m1xed0s]

Just browsing through the autotrader ads in local market. Found a rather interesting thing:

The similiar vichecal is selling about 5k more in brand dealership over other dealership. For example, a 2011 VW Golf trendline with about 15k km is marked for $22k+ in VW dealership, while 2012 golf trendline with about 26k km marked less than $17k in mazda dealership.

I personally do not think the 10k km will worth the $5k, especially when the car has only less than 30k km... I also do not think dealer re-certify will worth the $5k either when factory warranty is still valid... but I could be wrong.

comments?

[tooscoops]

1000 for kms.

1000 for availability of vw financing

1000 for increased profit (not gonna lie...)

1500 for Certified pre-owned designation/warranty...

500 available to discount where other lots may not move as much...

that should do it!

doesn't mean its a good deal or bad deal... just lettin gya know.

[m1xed0s]

1500 for Certified pre-owned designation/warranty...

Not sure about other dealerships, for VW, i would still have to buy the 2-year extra warranty even the car is certified. That is why I do not think it worths the extra...but i guess that is how they can be staying profitable 

[johngenx]

It's my experience that on-brand dealers ask a LOT for their used cars.  Our Subaru dealer asks at-market prices for their non-Subaru vehicles, but WAY higher for their Subarus.  A Forester that you'd see for $17-18K on a different lot will be $22-24K on the Subaru lot.

1. I guess they can get away with it.  People looking for a Subaru go to a Subaru dealer thinking the dealer will have the really cherry models.  Some truth to it, but I've found all my Subarus on other lots.

2. Want to show new car buyers that their car will hold it's value.  I've heard it used in the new car showroom a few times: "We have a three year old car and it's barely less than this new one!  Wow, you won't lose money buying a Subaru!"   

3. Our particular Subaru dealers are really, really greedy.  Their service rates are ridiculous, they 2x or 3x most parts prices, and their own service schedule would bankrupt a Saudi prince were it followed.  So, I'm not surprised that they price their used vehicles very high too.

In the OP case, I'd just buy the one on the Mazda lot.  Obviously the VW dealer is just looking to snag someone looking for a VW and not doing their homework.  I doubt the one on the VW lot has any extra warranty.  "Available for purchase."

[Cord]

2. Want to show new car buyers that their car will hold it's value.  I've heard it used in the new car showroom a few times: "We have a three year old car and it's barely less than this new one!  Wow, you won't lose money buying a Subaru!"   

I bet that works great right before they appraise the trade. 

[Northernridge]

I've noticed the same thing with Honda. Maybe consumers figure when the brands match up the vehicles will somehow be a little better. Or maybe the dealership is more confident selling it's own brand of cars.

[tooscoops]

1500 for Certified pre-owned designation/warranty...

Not sure about other dealerships, for VW, i would still have to buy the 2-year extra warranty even the car is certified. That is why I do not think it worths the extra...but i guess that is how they can be staying profitable 

yeah, i've found that 1500 is generally the cost if the CPO designation includes extended original factory warranty. if its just a sticker on the car because it gets a "160 point inspection" that is worth nothing really... just a bit of piece of mind.

our cpo's at volvo are actually decent... about the same price, and gets 6yr/160km full warranty (rather than the 4/80 original), 130 point inspection (ohhh!), and lower finance rates (down to 1.9%... as long as you don't mind paying a grand a month)... if its similar for vw, good.. if not.. meh

[johngenx]

I bet that works great right before they appraise the trade. 

They probably hone them so badly on adds and their special fees that they can offer a better trade allowance.  Last time I was in there the PDI/Freight was $500 more than the Subaru MSRP.

[m1xed0s]

I've noticed the same thing with Honda. Maybe consumers figure when the brands match up the vehicles will somehow be a little better. Or maybe the dealership is more confident selling it's own brand of cars.

Agreed, but I think most likely they are more comfortable fixing the car with little investment 

[2latecrew]

The Local Honda dealer is brutal for this. I see their prices some 40% higher than other dealers and its not like used Civics are rare. Its amazing how some people actually think there is that much value in buying it from a Honda dealer.

Subaru dealers here are very greedy also. Expensive service, new cars packed with expensive Admin/Wheel lock service packs. All the Subaru dealers within about 150 KM are owned byu the same group so they probably figure if you want a Subaru you can get hosed by dealer A or Dealer B but we'll end up with the $ in the end so why be competitive. Makes sense I guess

[m1xed0s]

The Local Honda dealer is brutal for this. I see their prices some 40% higher than other dealers and its not like used Civics are rare. Its amazing how some people actually think there is that much value in buying it from a Honda dealer.

Subaru dealers here are very greedy also. Expensive service, new cars packed with expensive Admin/Wheel lock service packs. All the Subaru dealers within about 150 KM are owned byu the same group so they probably figure if you want a Subaru you can get hosed by dealer A or Dealer B but we'll end up with the $ in the end so why be competitive. Makes sense I guess

I got the ridgeline from the that honda dealership and I thought it was reasonable price. That might just because I bought it on new year's eve...or maybe just I thought. But I did spent hours and hours negotiating with them...

Any reputable used-car dealership around the region you can recommend?

[2latecrew]

The Local Honda dealer is brutal for this. I see their prices some 40% higher than other dealers and its not like used Civics are rare. Its amazing how some people actually think there is that much value in buying it from a Honda dealer.

Subaru dealers here are very greedy also. Expensive service, new cars packed with expensive Admin/Wheel lock service packs. All the Subaru dealers within about 150 KM are owned byu the same group so they probably figure if you want a Subaru you can get hosed by dealer A or Dealer B but we'll end up with the $ in the end so why be competitive. Makes sense I guess

I got the ridgeline from the that honda dealership and I thought it was reasonable price. That might just because I bought it on new year's eve...or maybe just I thought. But I did spent hours and hours negotiating with them...

Any reputable used-car dealership around the region you can recommend?

I wouldn't call the Honda dealer in Halifax Dartmouth disreputable just overpriced. I tend to look at private first becuase dealer sale prices tend to be 15% plus higher. I don't need their financing on used so unles they had something I really wanted private is a much better market for me.

Dealers want to make a profit and they should. Private you more often find a seller who is actually willing or has to take a loss due to circumstance (lost job, moving can't afford etc).

[neil]

The OP comparison, well if the cheaper car has a $12000 DNR on the carproof, that would explain a lot of it.  I've found many euro cars on used lots that are not franchised from the parent are cars that cannot be CPO'd due to DNR's.  VW and BMW in particular are territorial in controlling the used market for their product, attempting to keep resale values high.

[m1xed0s]

The OP comparison, well if the cheaper car has a $12000 DNR on the carproof, that would explain a lot of it.  I've found many euro cars on used lots that are not franchised from the parent are cars that cannot be CPO'd due to DNR's.  VW and BMW in particular are territorial in controlling the used market for their product, attempting to keep resale values high.

DNR == Do Not Return? Or what does it mean?

[Cord]

The OP comparison, well if the cheaper car has a $12000 DNR on the carproof, that would explain a lot of it.  I've found many euro cars on used lots that are not franchised from the parent are cars that cannot be CPO'd due to DNR's.  VW and BMW in particular are territorial in controlling the used market for their product, attempting to keep resale values high.

DNR == Do Not Return? Or what does it mean?

Do Not Resuscitate - For the worst cases.

Otherwise, Damaged 'n' Repaired.

[johngenx]

I've bought both private and dealer.  I prefer private sales, but it seems more and more people either hand-back at the end of the lease (as was prevalent up to a couple years ago) or prefer to trade.

The plus for private sales is that you generally pay a little lower price.  But, for me, I like that I can get a good sense of the treatment of the car.  Dealers rarely have service records.  They rarely have good stuff like the extra wheels with snow tires, etc.

On the hunt for the Miata, I stopped considering dealers very quickly into the process.  They generally wanted an outrageous amount for the car, had no records, and no information concerning the ownership history.  Most of the private sellers were the complete opposite.

Back in 2004 on the hunt for the Forester, it was the opposite.  Dealers had the nice examples, the private sellers had junk.  So, we bought from a dealer.  NOT a Subaru dealer though.

[m1xed0s]

Do Not Resuscitate - For the worst cases.

Otherwise, Damaged 'n' Repaired.

Interestingly, we were surfing in one of the used car dealer lot couple of weeks ago. My wife saw a white mini cooper(S). It was shinny but there was no price info. So we went into office to just ask for the price. The guy told us that it had $10,000 accident right after we asked...I guess we were lucky that the dealer did not even try to lie

I prefer to ask for the CarProof for the car if I decide to buy from dealer even I am not 100% sure how trustful the carproof is

[m1xed0s]

...
On the hunt for the Miata, I stopped considering dealers very quickly into the process.  They generally wanted an outrageous amount for the car, had no records, and no information concerning the ownership history.  Most of the private sellers were the complete opposite.
...

Maybe it is just me, I do not keep the receipts or reports dealer gave after servicing my vehicle...Or at least I do not keep them for 4 or 5 years...

[johngenx]

Maybe it is just me, I do not keep the receipts or reports dealer gave after servicing my vehicle...Or at least I do not keep them for 4 or 5 years...

Some people do, some don't.  Many people do take their car to the same place all the time, and they will often print off all the past receipts for the owner.  FOIP means they can't for someone else.

I used to carefully save all the service records, but now I'd just go to the shop and have them print the history for me if I were selling.  They have no problem with this.

[carcrazed]

It seems most used car dealers make you pay for carproof report these days.. do they usually provide it for free when you actually go in and show genuine interest?