Reasons why a dealership would sell a used vehicle under KBB suggested retail price?

If dealer is selling a used vehicle way under KBB suggested retail value, what does that usually mean (could it mean that there鈥檚 something wrong with the car, or is he just trying not to make a big profit?)





Also can a price still be negotiate even if the used car is listed below KBB suggested retail price? And by how much?|||Kelley Blue Book is a guide, not law. Car prices are determined by supply and demand. There are typically three KBB price levels, the highest of which is the amount you would expect to pay at the dealer and the lowest the amount you would expect to be offered by a dealer. In between is the price you should expect to pay when purchased directly from the owner.





As to hidden motives of the dealer, that would be guessing. My suggestion would be to check on the dealer with the Better Business Bureau for your area to make sure there have not been complaints in the past, especially with respect to used car sales. Also, verify that the car has all of the equipment that you are considering when valuing it using KBB. Some accessories can make a big difference in the final value.





Another recommendation would be to purchase a CARFAX report. Many dealers now offer them at no cost, but if the dealer does not, you should purchase one anyway. It could save you a bundle. Just wait until you have set your sights on a specific car. There is no sense in buying several if you are not certain you are going to buy.





In the current economy I would be surprised if a dealer is unwilling to negotiate. As a buyer you are the one with the strength since the number of buyers have reached all-time lows. At the very least you should give it a try and make an offer below their price. My suggestion would be to offer them the wholesale (the price that an auto auction company would typically pay) price for the car.





Remember, you have nothing to lose except some of your time. These types of negotiations can sometimes last hours. If you really want to do it for the savings, be prepared and bring a backpack with your laptop, magazines or a book, and something to eat and drink.





You will put yourself in a better position if you are going to pay cash or at least qualify for financing without any stipulations. The dealer will likely want to push you to use their financing. They typically get a kickback and it can sometimes offset any loss they may have on the sales price. If the financing deal is comparable to other sources such as your credit union then go for it, but it is important that you make certain there are no hidden fees. This is especially true for early payoff of the loan.





Perform a search of several auto sales websites to determine the prices being asked for the same or extremely similar car. If you can locate one or more within a 100 mile radius of your home you can use it to argue for a lower price.





The dealer will typically tell you that they have put hundreds or thousands of dollars into the vehicle and they stand behind the car. Regardless, the value is still determined by the marketplace, not how much they spent to make it better. Make certain that the car comes with a minimum 90 day warranty and that you get the benefit of the original manufacturer's warranty as well.





Unless you are buying a car that Consumer Reports or other similar organizations tell you have had a history of out of warranty repairs, most extended warranties that a dealer will sell you are not worth the cost.





You definitely need to do a thorough test drive and take someone with you with mechanical abilities. Test everything in the car. Drive it with and without the radio on, the A/C on, the heat on, etc. Verify that the tires are in good condition and that all four are the same type and brand and were installed at the same time.





Good luck.|||lemon city|||1 its a crappy car2 the guy trading it in got almost nothing for it


3 it been sitting too long and they want it to move


4 its a odd or a model/make that they dont sell and want it off the lot|||Just look at our economy and then you will figure it out......|||Personally, I've found most of those web sites that give car values are way wrong. They don't seem to know what's going on in the market.





NADA is about the closest, in my opinion.