what is a fair profit to offer?

[mano26]

I know what a local dealer paid at auction for an 09 135. What do you think is a fair offer over what he paid(they don't know I know). Let's say he paid 22000+ 500 to have it shipped.

[cooler2442]

It doesn't matter what the dealer paid for a car at auction. Market price matters. They could have paid 15k but the car is worth 25k and if you go in saying "hey I know you paid 15k so I'll give you 17k for it" they will laugh at you.

[mano26]

I'm not going to tell him I know obviously. I'm just going to make an offer and don't want to be insulting yet im not going to pay asking price. I've seen the same car list from $19-$25k with similar mileage so my question stands.

[1descending]

They won't be insulted, they'll just think you're not a serious buyer. And they won't negotiate with someone who they think is just screwing around.

You know what they paid for the car, you (should) know what similar cars are going for in your area. Decide on the limit of what you're willing to pay for the car. Then start a bit lower than that and walk away once you hit your upper limit

[mano26]

Just to update, bought the car....paid $1000 over his total cost, and he even showed me his receipt from Manheim..bought it at a BMWFS sale. Went easier than expected

[TheSt|G]

Easy for him, easy for you.

[titancrusher1]

what car? 09 135i?

[will-go]

If dealer cost was $22,500, and you paid $1000 over that, that's about 4% profit for the dealer. Doesn't sound like much profit to me. Hope you like the car.

[mike@x-ph.com]

Congrats on your new car, time to post some pics

[mano26]

picking it up in a few hours......will definitely post some pics this weekend.

[Worra]

Originally Posted by TheSt|G

Easy for him, easy for you.

My father always told me, its only a good deal if its a good deal for you, and a good deal for them. Congrats on the purchase.

[BEAR-AvHistory]

Its always a good deal for the dealer. They hold all the info & have a floor price they will not go below.

[TheSt|G]

Originally Posted by Worra

My father always told me, its only a good deal if its a good deal for you, and a good deal for them. Congrats on the purchase.

Few people hold themselves to that standard.

[Worra]

Originally Posted by TheSt|G

Few people hold themselves to that standard.

Very true, but someone's gotta try!

[AlBinVA]

Originally Posted by mano26

Just to update, bought the car....paid $1000 over his total cost, and he even showed me his receipt from Manheim..bought it at a BMWFS sale. Went easier than expected

Congrats on your 135i purchase. Did his auction receipt show $22k for a 2009? Without any details, mileage, condition etc. provided by you, I would think $22K would be a retail price for an 09, not an auction price.

If you are happy, it doesn't matter.

[mano26]

It was an 09 with 31k miles and 2 years if cpo. It sold for$20700. I've been watching the auctions for months now and 08's with similar mileage sold for about the same price, no warranty. I'm pretty happy with it, especially with the cpo warranty. I had my uncle bid on a few cars for me and couldn't get anything under $20k unless there was paint damage/dents, or much higher mileage.

[AlBinVA]

It's good to know these cars are holding their value.

Now go out and enjoy it.

[SayHack]

Originally Posted by cooler2442

It doesn't matter what the dealer paid for a car at auction. Market price matters. They could have paid 15k but the car is worth 25k and if you go in saying "hey I know you paid 15k so I'll give you 17k for it" they will laugh at you.

I totally disagree. Most successful used car dealerships make their money on volume rather then individual profits. For my car, i only paid less then $1400 difference from what the dealer paid...now i financed it with a low percent, not saying he doesn't have a cut from that (because most dealerships also make money from your monthly payment because they work with certain banks and there is a little money to be profited) but probably not too much money from the finance. but I have no doubts that the guys averages at least 2 cars a day on the sales, most likely 3 or 4....so if you do the math, that's a lot of money in his pocket. (i understand that he has to invest to "freshen-up" the cars but that's pocket change when you are a volume sales dealer)