local dealers offering to buy car for more than you paid?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

local dealers offering to buy car for more than you paid?

Post by bstewie »

Haphazardly I bought a used car I liked a few years ago. Unlike most other cars, it has appreciated. It is a modern car that had limited production (low tens of thousands of units I believe) and is now a discontinued model. I love the car, but have thought of changing to a more practical daily driver once I’ve had my fair share of fun with it (maybe in a couple years). I do not want to own and maintain two cars. Over the past month a few of the local dealers have been contacting me and offering 20% more than I originally paid for the car (I have put 20k miles on it while owning it).

Does this happen with any regularity? I’m half tempted to take this opportunity to transition to a nicer daily driver than I would typically buy, but I’m wondering if I’ll regret it if the car continues to appreciate.
Last edited by bstewie on Thu Apr 15, 2021 9:12 pm, edited 1 time in total.
User avatar
arcticpineapplecorp.
Posts: 15080
Joined: Tue Mar 06, 2012 8:22 pm

Re: local dealers offering to buy car for more than you paid?

Post by arcticpineapplecorp. »

not with regularity, but it can. I think used Prius were going for more than new ones in early production because there weren't enough prius' to meet demand. Not sure that's the case anymore.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
User avatar
StevieG72
Posts: 2214
Joined: Wed Feb 05, 2014 8:00 pm

Re: local dealers offering to buy car for more than you paid?

Post by StevieG72 »

What type of car?

More often than not the dealers have no interest in your car. They are interested in you trading that car and buying something new. I got multiple notifications that the dealer wanted my 2006 Ford Escape! It was popular and they needed it it for a customer!
Fools think their own way is right, but the wise listen to others.
HyperCat
Posts: 91
Joined: Fri Jan 29, 2021 9:44 am

Re: local dealers offering to buy car for more than you paid?

Post by HyperCat »

I'd question how much of it is due to your particular car versus the generally sky-high prices in the used car market these days. For example, my car (which is not rare at all), has appreciated by about $3k in the past year, which has probably never happened in that model's entire history and will probably never happen again.
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

StevieG72 wrote: Thu Apr 15, 2021 9:12 pm What type of car?

More often than not the dealers have no interest in your car. They are interested in you trading that car and buying something new. I got multiple notifications that the dealer wanted my 2006 Ford Escape! It was popular and they needed it it for a customer!
Funny enough it’s a Ford, but it wasn’t bought from any of the local dealers. I’m in their system from some service. It’s a GT350 (just a factory modified mustang)
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

HyperCat wrote: Thu Apr 15, 2021 9:13 pm I'd question how much of it is due to your particular car versus the generally sky-high prices in the used car market these days. For example, my car (which is not rare at all), has appreciated by about $3k in the past year, which has probably never happened in that model's entire history and will probably never happen again.
That’s a good point I haven’t considered
Afty
Posts: 2390
Joined: Sun Sep 07, 2014 5:31 pm

Re: local dealers offering to buy car for more than you paid?

Post by Afty »

bstewie wrote: Thu Apr 15, 2021 9:17 pm
StevieG72 wrote: Thu Apr 15, 2021 9:12 pm What type of car?

More often than not the dealers have no interest in your car. They are interested in you trading that car and buying something new. I got multiple notifications that the dealer wanted my 2006 Ford Escape! It was popular and they needed it it for a customer!
Funny enough it’s a Ford, but it wasn’t bought from any of the local dealers. I’m in their system from some service. It’s a GT350 (just a factory modified mustang)
The GT350 is not just any car. It’s out of production and likely to become a classic. I would hang onto it for dear life.
Patzer
Posts: 701
Joined: Wed Jun 10, 2015 10:56 am

Re: local dealers offering to buy car for more than you paid?

Post by Patzer »

If the dealer will give you a 20% markup, what is it going for in the private party market?

Also, used car prices are high right now, so before selling definitely consider how much it will cost you to replace it.
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

Afty wrote: Thu Apr 15, 2021 10:03 pm
bstewie wrote: Thu Apr 15, 2021 9:17 pm
StevieG72 wrote: Thu Apr 15, 2021 9:12 pm What type of car?

More often than not the dealers have no interest in your car. They are interested in you trading that car and buying something new. I got multiple notifications that the dealer wanted my 2006 Ford Escape! It was popular and they needed it it for a customer!
Funny enough it’s a Ford, but it wasn’t bought from any of the local dealers. I’m in their system from some service. It’s a GT350 (just a factory modified mustang)
The GT350 is not just any car. It’s out of production and likely to become a classic. I would hang onto it for dear life.
I agree, I’m just not trying to over exaggerate (it’s still a mustang). I hadn’t really considered any of this when purchasing it and now I’m a little torn. It’s my daily driver and a little impractical for certain things. I had considered selling it in a few years for a compact suv but now I’m uncertain.
Last edited by bstewie on Thu Apr 15, 2021 10:11 pm, edited 2 times in total.
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

Patzer wrote: Thu Apr 15, 2021 10:05 pm If the dealer will give you a 20% markup, what is it going for in the private party market?

Also, used car prices are high right now, so before selling definitely consider how much it will cost you to replace it.
I haven’t checked private party. I’m definitely not actively sitting on the fence about making a decision. I’m just looking for other’s experiences over the years (maybe it’s a short lived event, maybe I should plan to hold on to it, etc)
Carson
Posts: 854
Joined: Fri May 09, 2014 3:26 pm

Re: local dealers offering to buy car for more than you paid?

Post by Carson »

Is there any chance that renting a car as needed may be a way to get what you need done and hold on to the car you like?
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

Carson wrote: Thu Apr 15, 2021 10:11 pm Is there any chance that renting a car as needed may be a way to get what you need done and hold on to the car you like?
Yes, ive actually done this a small number of times over the past few years.
hi_there
Posts: 1182
Joined: Sat Aug 29, 2020 7:00 pm

Re: local dealers offering to buy car for more than you paid?

Post by hi_there »

What is the typical dealer listing price for comparable cars?
User avatar
vanbogle59
Posts: 1314
Joined: Wed Mar 10, 2021 7:30 pm

Re: local dealers offering to buy car for more than you paid?

Post by vanbogle59 »

I bought a cute little 3 yr old VW GTI with 22K mi.
2.5 years (and one pandemic spent in a garage) later, it still only had 37K mi.
I took it in for an oil change.
When I picked it up, they left an offer on the windshield to buy it for more than I paid for it.
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

hi_there wrote: Thu Apr 15, 2021 10:13 pm What is the typical dealer listing price for comparable cars?
I would estimate 25% more than I paid but I’m not actively keeping track
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

vanbogle59 wrote: Thu Apr 15, 2021 10:16 pm I bought a cute little 3 yr old VW GTI with 22K mi.
2.5 years (and one pandemic spent in a garage) later, it still only had 37K mi.
I took it in for an oil change.
When I picked it up, they left an offer on the windshield to buy it for more than I paid for it.
Perhaps it’s a ripple effect of the pandemic and not such a unique situation, maybe that’s what I’m curious in determining (and why I posted I suppose :happy )
User avatar
vanbogle59
Posts: 1314
Joined: Wed Mar 10, 2021 7:30 pm

Re: local dealers offering to buy car for more than you paid?

Post by vanbogle59 »

They just told me they had multiple customers asking for low mileage GTIs.
So, they kept their eyes open in the service bay for ones they thought they could sell at a profit.
Swivelguy
Posts: 509
Joined: Sun Jan 18, 2009 10:37 pm

Re: local dealers offering to buy car for more than you paid?

Post by Swivelguy »

Dealers will tell you that they really want your car, as a way of getting you in the door and starting to think about a different car. They are hoping by the time they disappoint you with their trade-in offer, you've already started to visualize yourself in something new. I'm not saying it doesn't happen that your car could have actually appreciated, but it's always been a thing to have fake claims of that.
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

Swivelguy wrote: Thu Apr 15, 2021 10:22 pm Dealers will tell you that they really want your car, as a way of getting you in the door and starting to think about a different car. They are hoping by the time they disappoint you with their trade-in offer, you've already started to visualize yourself in something new. I'm not saying it doesn't happen that your car could have actually appreciated, but it's always been a thing to have fake claims of that.
Fair point, completely possible it’s the first time I’ve been marketed to in this fashion
hi_there
Posts: 1182
Joined: Sat Aug 29, 2020 7:00 pm

Re: local dealers offering to buy car for more than you paid?

Post by hi_there »

bstewie wrote: Thu Apr 15, 2021 10:17 pm
hi_there wrote: Thu Apr 15, 2021 10:13 pm What is the typical dealer listing price for comparable cars?
I would estimate 25% more than I paid but I’m not actively keeping track
If they are indeed taking only a 5% spread, minus prep costs, on this transaction, then it is not unreasonable to sell it if you prefer a different car. Somehow, I don't think dealers would be actively soliciting the car if they can only make 5% though.
Tingting1013
Posts: 1594
Joined: Mon Aug 24, 2020 5:44 pm

Re: local dealers offering to buy car for more than you paid?

Post by Tingting1013 »

Swivelguy wrote: Thu Apr 15, 2021 10:22 pm Dealers will tell you that they really want your car, as a way of getting you in the door and starting to think about a different car. They are hoping by the time they disappoint you with their trade-in offer, you've already started to visualize yourself in something new. I'm not saying it doesn't happen that your car could have actually appreciated, but it's always been a thing to have fake claims of that.
Except OP is getting offered more than he paid for it.
Swivelguy
Posts: 509
Joined: Sun Jan 18, 2009 10:37 pm

Re: local dealers offering to buy car for more than you paid?

Post by Swivelguy »

Tingting1013 wrote: Thu Apr 15, 2021 10:25 pm
Swivelguy wrote: Thu Apr 15, 2021 10:22 pm Dealers will tell you that they really want your car, as a way of getting you in the door and starting to think about a different car. They are hoping by the time they disappoint you with their trade-in offer, you've already started to visualize yourself in something new. I'm not saying it doesn't happen that your car could have actually appreciated, but it's always been a thing to have fake claims of that.
Except OP is getting offered more than he paid for it.
Yeah, it's a bait and switch. They give you unofficial offers that are high, then when you bring it in for real, they go "oh, our VIN records must have been incorrect, the one that's in high demand is a different trim/color/whatever, but here's a lower offer that we can honor."

OP sounds like he or she might actually have a somewhat collectible car, and used car prices are up in general, so, *shrug*, maybe it's legit.
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

Swivelguy wrote: Thu Apr 15, 2021 10:28 pm
Tingting1013 wrote: Thu Apr 15, 2021 10:25 pm
Swivelguy wrote: Thu Apr 15, 2021 10:22 pm Dealers will tell you that they really want your car, as a way of getting you in the door and starting to think about a different car. They are hoping by the time they disappoint you with their trade-in offer, you've already started to visualize yourself in something new. I'm not saying it doesn't happen that your car could have actually appreciated, but it's always been a thing to have fake claims of that.
Except OP is getting offered more than he paid for it.
Yeah, it's a bait and switch. They give you unofficial offers that are high, then when you bring it in for real, they go "oh, our VIN records must have been incorrect, the one that's in high demand is a different trim/color/whatever, but here's a lower offer that we can honor."

OP sounds like he or she might actually have a somewhat collectible car, and used car prices are up in general, so, *shrug*, maybe it's legit.
Definitely haven’t pursued this to the point of going into the dealer. Could be legit, could be a bait and switch. Bogleheads is a diverse community so I figured I would ask out of curiosity
Tingting1013
Posts: 1594
Joined: Mon Aug 24, 2020 5:44 pm

Re: local dealers offering to buy car for more than you paid?

Post by Tingting1013 »

Swivelguy wrote: Thu Apr 15, 2021 10:28 pm
Tingting1013 wrote: Thu Apr 15, 2021 10:25 pm
Swivelguy wrote: Thu Apr 15, 2021 10:22 pm Dealers will tell you that they really want your car, as a way of getting you in the door and starting to think about a different car. They are hoping by the time they disappoint you with their trade-in offer, you've already started to visualize yourself in something new. I'm not saying it doesn't happen that your car could have actually appreciated, but it's always been a thing to have fake claims of that.
Except OP is getting offered more than he paid for it.
Yeah, it's a bait and switch. They give you unofficial offers that are high, then when you bring it in for real, they go "oh, our VIN records must have been incorrect, the one that's in high demand is a different trim/color/whatever, but here's a lower offer that we can honor."

OP sounds like he or she might actually have a somewhat collectible car, and used car prices are up in general, so, *shrug*, maybe it's legit.
This still happens, but nowadays with Carvana, Vroom, and Shift, you can get firm offers without ever setting foot in a dealership. And so the dealers have to be more reasonable if they want any used inventory at all.
clip651
Posts: 1584
Joined: Thu Oct 02, 2014 11:02 am

Re: local dealers offering to buy car for more than you paid?

Post by clip651 »

You could go online to CarMax and see what kind of quote they give you. That might give you an idea if the price is currently high for our model. At least it would give you a second data point if you're curious.
IfIOnlyKnew
Posts: 48
Joined: Thu Sep 24, 2020 11:05 pm

Re: local dealers offering to buy car for more than you paid?

Post by IfIOnlyKnew »

bstewie wrote: Thu Apr 15, 2021 9:17 pm
StevieG72 wrote: Thu Apr 15, 2021 9:12 pm What type of car?

More often than not the dealers have no interest in your car. They are interested in you trading that car and buying something new. I got multiple notifications that the dealer wanted my 2006 Ford Escape! It was popular and they needed it it for a customer!
Funny enough it’s a Ford, but it wasn’t bought from any of the local dealers. I’m in their system from some service. It’s a GT350 (just a factory modified mustang)
Darn! I was thinking Ford GT. :happy :greedy 8-)
Topic Author
bstewie
Posts: 215
Joined: Wed Oct 04, 2017 8:16 pm

Re: local dealers offering to buy car for more than you paid?

Post by bstewie »

IfIOnlyKnew wrote: Thu Apr 15, 2021 10:59 pm
bstewie wrote: Thu Apr 15, 2021 9:17 pm
StevieG72 wrote: Thu Apr 15, 2021 9:12 pm What type of car?

More often than not the dealers have no interest in your car. They are interested in you trading that car and buying something new. I got multiple notifications that the dealer wanted my 2006 Ford Escape! It was popular and they needed it it for a customer!
Funny enough it’s a Ford, but it wasn’t bought from any of the local dealers. I’m in their system from some service. It’s a GT350 (just a factory modified mustang)
Darn! I was thinking Ford GT. :happy :greedy 8-)
I wish :sharebeer
mr_brightside
Posts: 897
Joined: Sat Oct 17, 2020 3:23 pm

Re: local dealers offering to buy car for more than you paid?

Post by mr_brightside »

bstewie wrote: Thu Apr 15, 2021 10:23 pm
Swivelguy wrote: Thu Apr 15, 2021 10:22 pm Dealers will tell you that they really want your car, as a way of getting you in the door and starting to think about a different car. They are hoping by the time they disappoint you with their trade-in offer, you've already started to visualize yourself in something new. I'm not saying it doesn't happen that your car could have actually appreciated, but it's always been a thing to have fake claims of that.
Fair point, completely possible it’s the first time I’ve been marketed to in this fashion
what Swivel said. they'll lowball you when you go in. oh the mileage is high. oh it doesn't have the tech package. oh its a 2017 - we thought is was a 2018 or whatever. or it's contingent on buying a new vehicle.

think about it -- the dealership isn't going to lose money.

which is not to say that there isn't high demand for quality cars. ime the best way to get an estimate is physically take it to Carmax and get a written offer. takes about an hour if they're not slammed. that is a firm price they are willing to cut you a check for on the spot no strings attached. its a solid data point.

-------------------------------------------------------------
Chip
Posts: 3994
Joined: Wed Feb 21, 2007 3:57 am

Re: local dealers offering to buy car for more than you paid?

Post by Chip »

There is definitely a shortage of some used cars. I know some car salesmen socially and all of them have been talking about rapidly rising prices at the auctions they attend.

One of them told me of making 7.5k profit on a Honda sale recently -- it was just a little profit on the new Accord, but the trade-in was an Odyssey. There is a lot of demand for used Odysseys, prices are up and they low-balled the trade-in.
Jack FFR1846
Posts: 18499
Joined: Tue Dec 31, 2013 6:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: local dealers offering to buy car for more than you paid?

Post by Jack FFR1846 »

Dealers are doing this kind of thing. I got a letter offering just under $24k for my 7 year old Wrangler Unlimited sport. I paid $28k for it brand new (ordered). But I read the entire letter and it states that this offer is for the vehicle in excellent condition. Excellent condition means that there is absolutely nothing wrong with it, no chips in the paint, no scratches, interior in perfect condition and all maintenance records done at the dealer. In short, zero cars meet this standard. I'm sure my offer would be dropped to $20k, if I brought it to them. The letter and your offer are a way to get you into the dealership to buy a new car off the lot. This isn't new. I've had offers on all of my cars over the years. I still get offers for cars I sold years ago.
Bogle: Smart Beta is stupid
User avatar
Watty
Posts: 28859
Joined: Wed Oct 10, 2007 3:55 pm

Re: local dealers offering to buy car for more than you paid?

Post by Watty »

Just for some perspective I have a Corolla that I bought new about three years ago. It is a nice car but it is about as uncollectible a car as you could think of.

After hearing how crazy the used car market are out of curiosity I got a quote from Carvana to see what they would pay for it and they offered me about $500 less than I paid for the Corolla when it was new(before tax and licence). From what I have read Carvana is really pretty good about honoring their prices and just sending someone to your house to pick up the car. They are of course paying less than you could sell the car for yourself.

Some new cars are in short supply because of the chip shortage but from what I can tell many new cars that are not in short supply are still selling for reasonable prices.

I am actually considering trading in the Corolla for new Subaru Forester because I could use a larger car for road trips and it has better safety features. In my state if I trade a car in that reduces the sales tax so that can make more sense than selling the car privately.

If that works out that would mean that got to use the Corolla for three years for a trivial cost other than the normal operating costs.
bstewie wrote: Thu Apr 15, 2021 9:02 pm Over the past month a few of the local dealers have been contacting me and offering 20% more than I originally paid for the car (I have put 20k miles on it while owning it).
Don't forget that you would owe capital gains taxes if you sell the car. I don't know how the taxes would work if you traded the car in on a new car and had a low trade-in price and a low purchase price so you have a net price on the new car that was OK.
bstewie wrote: Thu Apr 15, 2021 9:02 pm I’m half tempted to take this opportunity to transition to a nicer daily driver than I would typically buy, but I’m wondering if I’ll regret it if the car continues to appreciate.
The problem is that if you are using it as a daily driver then in 20 years your car would have 200k+ miles on it and likely have been in a few fender benders. Many of the expensive collectable cars are expensive because they have been garaged and have unusually low miles or they have been through an expensive restoration.

Unless you are going to get a different car and rarely drive this car then you need to be realistic about what this particular car might be worth if you keep using it as a daily driver.
Shallowpockets
Posts: 2533
Joined: Fri Nov 20, 2015 9:26 am

Re: local dealers offering to buy car for more than you paid?

Post by Shallowpockets »

How do people get offers from dealers like stated here? How do they know about the car? Are you saying that out of the blue a dealer calls you to discuss you selling them your car?
Colorado14
Posts: 1792
Joined: Thu Apr 07, 2011 4:58 pm
Location: Colorado

Re: local dealers offering to buy car for more than you paid?

Post by Colorado14 »

I've received offer letters similar to this in the past. I posted about it previously but can't find the post. The letter was from a dealer where I had some recall work completed, if my memory is correct. Since I wasn't interested in selling, I didn't follow up on the letter.
Mike Scott
Posts: 3579
Joined: Fri Jul 19, 2013 2:45 pm

Re: local dealers offering to buy car for more than you paid?

Post by Mike Scott »

We have been getting these lately and drop them in the trash. You may get a good price on your car, but you have to be interested in selling and also be able to get a good price on the replacement. The cars I have been looking at recently have had a spike in price this spring. I will drive the old one until inventory catches up and prices return to normal.
acepedro45
Posts: 19
Joined: Thu Dec 12, 2019 4:03 pm

Re: local dealers offering to buy car for more than you paid?

Post by acepedro45 »

This reminds me of taking the SATs in high school and then getting deluged with college mailings from schools that were "after me" at least according to my 17-year-old interpretation of events.

Yeah no. Obviously with hindsight they were just mining the SAT database for prospective recruits.

I'd guess this is a salesmanship technique to get you in the door of the car dealership. You might even end up with an inflated trade price on your current car as long as you don't bargain too hard on the price of the new one.
BruDude
Posts: 4211
Joined: Wed Dec 29, 2010 11:28 pm
Location: Las Vegas

Re: local dealers offering to buy car for more than you paid?

Post by BruDude »

Carvana just offered me $35.2k on a wrangler that I paid $34k for brand new 2.5 years and 25k miles ago. Market is nuts.
Post Reply