[carl_lazlo]

Hello all.

I'm trying to understand how car deals work behind the scenes between dealers. Here is an example:

I go to dealer A to get a car. They do not have the car I am looking for on the lot and find the car I want at a dealer in another state.

What kind of deal do they do to get me that car? Do they buy the car from the other dealer at an invoice price and then sell it to me with their markup? Do they do a trade of the same car? (They get me the car I want and agree to send them the same type of car back when they get one in stock.)

What happens if the car the other dealer has is a demo with some miles on it yet the dealer local to me that I am actually doing the deal with is not giving me a discount on the car. Are they getting the car from the other dealer for less money and pocketing the profits when they charge me full price?

If they do a car swap do they swap for a demo car they have or send them a new one?

I'm trying to get this info before I sign a deal with my dealership.

Thx!

[SoYank]

Does it really matter to you how the dealership acquires the car? If you're dealing for a new car, insist that the vehicle you sign for has minimal miles ... like fewer than 10. You're buying a new car, not a used car masquerading as a new one.

[BMW F22]

Well it depends. If you want a new car the dealers will get you a new car from the other dealership. Your dealership can either trade a demo (plus some additional money) or trade a similiarly priced vehicle for the car that you want.

Also if you're getting a demo car, they can make more money off of you since the demo isi worth less. Usually this is not the case because dealerships will always trade for new cars unless requested otherwise. IF it is in fact a demo that you're getting, you can further negotiate for a lower price.

[carl_lazlo]

That’s the issue I'm facing. First the deal started as them finding me a new car, then when I stood firm on the price I wanted for my trade they matched what I was looking for but suddenly the only cars they car find are ones "with some miles" as they put it.

I'm paying them 1K over invoice for the car I want but if I know it's a demo I want to negotiate lower. Problem is; what is a good cutoff number? If it is below 50 miles I would consider it new, but how many miles constitutes a demo car?

Also, how far down can I negotiate with them? If it is a demo, how much less than invoice can I get it for? 2-3K less?

[BMW F22]

You should ask them whether or not it's a demo. If it's just a car with some miles on it (people test driving them) then I supposed it's okay.

On the other hand, if it is indeed a demo, it will most likely have a few hundred miles on it. At that point you can probably get another $3k or so off. JUst tell them straight up that you want to renegotiate the price. You're willing to pay $1k over invoice for a new car, not a demo car or one with too many miles on it. Tell them that a demo car is pretty much like a used car so here's your offer : *tell them you want another 5K off* and go on from there. THis is just to give you some room to negotiate.


PS-Im not trying to put doubts in your mind here but are you sure u want to buy a demo (even if it saves u a few thousands)?? Just a thought as people probably test drove the crap out of that demo. Something to think about...

[sarafil]

When a dealer does a dealer trade on a new, untitled car with another dealer, they pay the dealer invoice for the car plus any charges for accessories and prep (floormats that might already be in the car, etc.). It doesn't matter if the car has miles on it. If the dealer doing the swap doesn't want to pay full invoice for the car (i.e. they try and discount the car because it has miles), the dealer that has the car will probably tell the other dealer to go screw. In other words, if they want the car, they have to pay. And, if you want the car, you have to pay.

If you go into your dealer and try to get an extra discount for the mileage, they're not going to do anything for you because they're paying the same for the car as they would for one with no miles. Either you can take the car at the agreed upon price, or you can wait and they can order you one from the factory with no miles but it'll take a couple of months. If you want the car now and you want something specific, you might have to settle for a car with some miles.

Also, if you are leasing, the lease starts at the delivery mileage, so you don't lose any miles on your lease.