How Much Can You Negotiate on a Certified Used Car
- McGuillicuddy [OP]
- Sr. Member
- Oct 29, 2009
- 633 posts
- 311 upvotes
Aug 3rd, 2016 5:01 pm
How much haggle room when negotiating a used/CPO car
I think we're all pretty familiar with how much you can negotiate down the price on various cars when buying new. Everybody shoots for invoice plus X%, where X varies depending on the vehicle. I have a good amount of experience with this, but I'm not sure what to expect when negotiating for a used/CPO vehicle. Presumably there is some room to haggle there, but what is the typical amount? -5%? -10%? More? Less? When I see a vehicle listed for, say, $25K, can I generally assume that I will be able to get them down to $23K without too much hassle? Not sure how much margin dealerships typically build into their used/CPO list prices.
- #2
- vkizzle
- Deal Expert
- Aug 22, 2011
- 36403 posts
- 22563 upvotes
- Center of Universe
Aug 3rd, 2016 7:03 pm
What's the mileage?
How much are similar trims going for on trader?
- #3
- macnut
- Deal Fanatic
- Oct 26, 2008
- 6502 posts
- 2190 upvotes
- BC
Aug 4th, 2016 1:10 am
As you suspect - the rules change with used/CPO cars compared to buying new. We are now talking apples and oranges and not apples to apples as in new cars.
If you can haggle a CPO vehicle down significantly it might mean they haven't put much effort into the CPO process.
If they won't budge much or at all it might mean that they know the car sailed through an intensive CPO process and is worth every penny.
Or it might be they had to spend quite a bit to bring it up to CPO standard and they intend to recoup that on top of their usual margin.
Overlaid on all of this is the question of how long the vehicle has been in their possession.
If you are the first customer to look at it you can bet that there is not going to be much haggle room.
If you are the 50th. customer, haggle away but be aware that there might be a good reason other than price that it is still available.
Which is another variable - is it the sort of car that the dealership likes to have on hand in their used inventory, or is it a trade-in that they don't like because it competes with their own brand?
- #4
- McGuillicuddy [OP]
- Sr. Member
- Oct 29, 2009
- 633 posts
- 311 upvotes
Aug 4th, 2016 1:31 pm
macnut wrote: ↑ As you suspect - the rules change with used/CPO cars compared to buying new. We are now talking apples and oranges and not apples to apples as in new cars.
If you can haggle a CPO vehicle down significantly it might mean they haven't put much effort into the CPO process.
If they won't budge much or at all it might mean that they know the car sailed through an intensive CPO process and is worth every penny.
Or it might be they had to spend quite a bit to bring it up to CPO standard and they intend to recoup that on top of their usual margin.
Overlaid on all of this is the question of how long the vehicle has been in their possession.
If you are the first customer to look at it you can bet that there is not going to be much haggle room.
If you are the 50th. customer, haggle away but be aware that there might be a good reason other than price that it is still available.
Which is another variable - is it the sort of car that the dealership likes to have on hand in their used inventory, or is it a trade-in that they don't like because it competes with their own brand?
Right. So you're saying that there is really no general rule regarding how much margin they build into CPO list prices. I'm looking at 2012-13 GTIs and A3s, and based on Autotrader they don't seem to be flying off the lots. Listings are typically there for at least a few weeks. Prices tend to be in the $19 - 24K range, and I've been going on the assumption that I would be able to get $1K or $2K knocked off with some bargaining, but maybe that's not realistic?
- #5
- McGuillicuddy [OP]
- Sr. Member
- Oct 29, 2009
- 633 posts
- 311 upvotes
Aug 4th, 2016 1:35 pm
macnut wrote: ↑ As you suspect - the rules change with used/CPO cars compared to buying new. We are now talking apples and oranges and not apples to apples as in new cars.
If you can haggle a CPO vehicle down significantly it might mean they haven't put much effort into the CPO process.
If they won't budge much or at all it might mean that they know the car sailed through an intensive CPO process and is worth every penny.
Or it might be they had to spend quite a bit to bring it up to CPO standard and they intend to recoup that on top of their usual margin.
Overlaid on all of this is the question of how long the vehicle has been in their possession.
If you are the first customer to look at it you can bet that there is not going to be much haggle room.
If you are the 50th. customer, haggle away but be aware that there might be a good reason other than price that it is still available.
Which is another variable - is it the sort of car that the dealership likes to have on hand in their used inventory, or is it a trade-in that they don't like because it competes with their own brand?
Right. So you're saying that there is really no general rule regarding how much margin they build into CPO list prices. I'm looking at 2012-13 GTIs and A3s, and based on Autotrader they don't seem to be flying off the lots. Listings are typically there for at least a few weeks. Prices tend to be in the $19 - 24K range, and I've been going on the assumption that I would be able to get $1K or $2K knocked off with some bargaining, but maybe that's not realistic?
- #6
- Cheapo-Findo
- Deal Guru
-
- Mar 9, 2007
- 14226 posts
- 9696 upvotes
- Think of the Childre…
Aug 4th, 2016 1:43 pm
Depends on the car you want to buy, how hot the market is for that particular car.
IE: Buying a Mustang in summer = harder to negotiate a better price vs Mustang in winter.
WOULD SOMEBODY THINK OF THE CHILDREN!!!
- #7
- BernardMarx
- Banned
- Feb 25, 2016
- 307 posts
- 85 upvotes
Aug 4th, 2016 6:09 pm
In general, start the negotiations at 10% below the asking price, but don't expect to achieve that.
Dealers are fairly good at pricing cars, they don't often make mistakes. Private sellers, not so much.
- #8
- Velocrank
- Member
- Feb 24, 2013
- 359 posts
- 52 upvotes
- Ontario
Aug 4th, 2016 8:17 pm
Go here and put in the car, year and model, kilometres and optional equipment for the car you are looking at.
http://www.vmrcanada.com/
If buying from a dealer, you should not be paying any more than the retail price. If privately, no more than the wholesale price.
- #9
- Wpegger
- Deal Fanatic
- Apr 11, 2012
- 5721 posts
- 2937 upvotes
- Winnipeg
Aug 4th, 2016 9:53 pm
10% is possible as I have done that recently.
Look for a car that is listed for a while (more than 4 weeks).
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- #10
- Philbert
- Deal Addict
- Dec 20, 2009
- 1270 posts
- 328 upvotes
Aug 4th, 2016 11:18 pm
I got $3000 off the listed price of the 2013 CPO RAV4 I bought yesterday. 13%.
- #11
- macnut
- Deal Fanatic
- Oct 26, 2008
- 6502 posts
- 2190 upvotes
- BC
Aug 5th, 2016 12:10 am
Philbert wrote: ↑ I got $3000 off the listed price of the 2013 CPO RAV4 I bought yesterday. 13%.
That's exceptional! How long had it been for sale? Popular colour/trim combo? Popular option package? Can't imagine your starting point would have been much less than that.
- #12
- Philbert
- Deal Addict
- Dec 20, 2009
- 1270 posts
- 328 upvotes
Aug 5th, 2016 2:46 am
macnut wrote: ↑
Philbert wrote: ↑ I got $3000 off the listed price of the 2013 CPO RAV4 I bought yesterday. 13%.
That's exceptional! How long had it been for sale? Popular colour/trim combo? Popular option package? Can't imagine your starting point would have been much less than that.
LE with upgrade package in blue had been on the lot 5-6 months, so long that the warranty expired 2 weeks earlier. One local owner and 51km. Manager said they screwed up and priced it too high to start. They wanted $22888 +gst and I started with $21000 all in. The manager stood up and shook my hand. That was it.
Afterward I jokingly said do you want my trade in? 2000 Acura EL manual with 210km, major oil leakage, shot cv joints and the list goes on. I was going to donate it to Kidney foundation. Manager said he could get 750 for it if one of his mechanics was interested but might take a while. Today when picked up the car I got the extended warranty spiel. I said I'll exchange EL for the full Toyota 3 year comprehensive. They said ok, gave me 1K for the EL and I paid them a few extra hundred. Maybe this was not wise and spur of moment, but I got rid of a car that I bought new and owed me nothing, with no Kijiji hassles, and a new car warranty on a used car.
- #13
- edvc520
- Deal Addict
- Sep 14, 2005
- 1422 posts
- 108 upvotes
Aug 5th, 2016 7:59 am
Negotiated a CPO BMW convertible from 25k down to 22k two years ago
- #14
- vkizzle
- Deal Expert
- Aug 22, 2011
- 36403 posts
- 22563 upvotes
- Center of Universe
Aug 5th, 2016 8:03 am
Philbert wrote: ↑
macnut wrote: ↑
Philbert wrote: ↑ I got $3000 off the listed price of the 2013 CPO RAV4 I bought yesterday. 13%.
That's exceptional! How long had it been for sale? Popular colour/trim combo? Popular option package? Can't imagine your starting point would have been much less than that.
LE with upgrade package in blue had been on the lot 5-6 months, so long that the warranty expired 2 weeks earlier. One local owner and 51km. Manager said they screwed up and priced it too high to start. They wanted $22888 +gst and I started with $21000 all in. The manager stood up and shook my hand. That was it.
Afterward I jokingly said do you want my trade in? 2000 Acura EL manual with 210km, major oil leakage, shot cv joints and the list goes on. I was going to donate it to Kidney foundation. Manager said he could get 750 for it if one of his mechanics was interested but might take a while. Today when picked up the car I got the extended warranty spiel. I said I'll exchange EL for the full Toyota 3 year comprehensive. They said ok, gave me 1K for the EL and I paid them a few extra hundred. Maybe this was not wise and spur of moment, but I got rid of a car that I bought new and owed me nothing, with no Kijiji hassles, and a new car warranty on a used car.
Can't get any better than that.
- #15
- toro17
- Jr. Member
- Mar 5, 2016
- 156 posts
- 59 upvotes
Aug 5th, 2016 12:38 pm
Again as others have said, I dont think there is much rhyme or reason to how dealers will negotiate. I Tried purchasing a g37 coupe from an infiniti dealer a couple years back. They were asking 18500. I offered them 17500. They went down to 18250. I walked they werent willing to negotiate and the car simply wasnt worth what they wanted. I monitored the car online, 3 weeks alter they lowered the price to 17500.. exactly what i had offered and they declined. I believe alot has to do with how long theyre sitting and how motivated they are to sell at the particular time.
- #16
- WingerII
- Jr. Member
- Oct 14, 2008
- 141 posts
- 18 upvotes
- Ottawa
Aug 5th, 2016 2:34 pm
Hi OP,
I recently bought a 2012 CPO GTI with 48k on the clock. With maybe 45 minutes to an hour of haggling I got $1500 off asking with the 2-year/40k CPO warranty included (which they value at $1500). Keep in mind CPO VWs don't come with an extended warranty, just the balance of the factory warranty, although I feel like getting the CPO warranty thrown in is pretty much automatic.
Could I have got them down a bit more? Probably, but in the end I'm happy with the deal I got, which is all that really matters.
- #17
- viiveyy
- Member
- Aug 10, 2015
- 345 posts
- 269 upvotes
- Toronto
Aug 5th, 2016 2:49 pm
Velocrank wrote: ↑ Go here and put in the car, year and model, kilometres and optional equipment for the car you are looking at.
http://www.vmrcanada.com/
If buying from a dealer, you should not be paying any more than the retail price. If privately, no more than the wholesale price.
Thanks for the site, however, I tested it out with a 2014 Camaro 1LT and with all the features and whatnot was retail @ 21k but almost all of them on AutoTrader are at $27-29k
- #18
- denti72
- Sr. Member
- Apr 8, 2010
- 790 posts
- 448 upvotes
- toronto
Aug 5th, 2016 3:05 pm
McGuillicuddy wrote: ↑ Right. So you're saying that there is really no general rule regarding how much margin they build into CPO list prices. I'm looking at 2012-13 GTIs and A3s, and based on Autotrader they don't seem to be flying off the lots. Listings are typically there for at least a few weeks. Prices tend to be in the $19 - 24K range, and I've been going on the assumption that I would be able to get $1K or $2K knocked off with some bargaining, but maybe that's not realistic?
About a month or so ago i was looking at a CPO A3. dealer had a few in the back and when i asked about the price I was told that they're not for sale. Mentioned that Audi Canada wasn't sure what to do with them yet as they have those takata (sp) air bags. even though the particular air bag wasn't in the whole big recall they were not putting them on the market yet. Maybe they being safe than sorry? No idea but there was about 10 of them in the back lot and non for sale. might have changed now
- #19
- Magoomba
- Deal Addict
-
- Nov 22, 2002
- 2993 posts
- 658 upvotes
Sep 21st, 2016 4:50 pm
Velocrank wrote: ↑ Go here and put in the car, year and model, kilometres and optional equipment for the car you are looking at.
http://www.vmrcanada.com/
If buying from a dealer, you should not be paying any more than the retail price. If privately, no more than the wholesale price.
How accurate are these prices. I'm seeing approx $27,000 to $30,000 on a 2012 Toyota Highlander Hybrid, but most ads and dealerships are listing for $35,000 and up.
- #20
- larphraulen
- Jr. Member
- Apr 14, 2008
- 107 posts
- 29 upvotes
Sep 23rd, 2016 2:42 pm
WingerII wrote: ↑ Hi OP,
I recently bought a 2012 CPO GTI with 48k on the clock. With maybe 45 minutes to an hour of haggling I got $1500 off asking with the 2-year/40k CPO warranty included (which they value at $1500). Keep in mind CPO VWs don't come with an extended warranty, just the balance of the factory warranty, although I feel like getting the CPO warranty thrown in is pretty much automatic.
Could I have got them down a bit more? Probably, but in the end I'm happy with the deal I got, which is all that really matters.
Damn, VW CPO warranty wasn't an automatic throw in for me lol... I declined with no hesitation when they offered it at $17xx, and dropped to $1,4xx. They eventually came down to $1,2xx on it, and I bit haha.
To the OP: I would argue you have more wiggle room with CPO vs. new because you have three negotiation opportunities.
1st: The moment you walk in, see it, and subtract imperfections/history from the book value
2nd: After the test drive
3rd: After the pre-purchase inspection
But as others have mentioned, the shelf life (or lot life in this case) influences the dealer willingness to sell price.
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How Much Can You Negotiate on a Certified Used Car
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