Purchasing 2001 Outback L.E.

[Bradley Walker]

Hello all,

I found a 2001 Outback Limited Edition with the dual moonroof, power
everything, 5speed stickshift, 75,000 miles, VIN checks out clean, leather
interior, single disc cd changer, single owner, full maintanence records
available. The dealers asking price is $15,900 - is this something that any
of you all would pay or consider decently priced? Obviously I just won't
take that price ignorantly and pay it, rather i plan to negotiate it down.
How far should I reasonably expect to negotiate the price down? This is a
fairly large Ford/Mazda/Subaru dealership.

Brad

 

[xblazinlv]

Have you looked at KBB or NADA to see if the prices check out.

http://www.carforums.net/
Auto Forums

 

[bigjim]

In 1/04 I paid 19,xxx for an 04 obw. It wasnt limited . Why would
anyone pay $10k for a USED car with no warranty. Spend 4k more and get
an 05.

 

[John O]

A friend just paid $10k for a '99 Outback LE, auto trans and same general
features. Car had 30,000 miles, and was in immaculate condition.

I'd say that price is high for a car with that many miles.

-John O

 

[Bradley Walker]

Because I'm on a budget and negotiations with the dealer would include a
warranty for x months and xxxx miles. Besides the `05's are all gone in
this area. The cheapest I had seen was a 2005 2.5i for $24,000 after
markdown. I refuse to pay for something that high.

 

[Bradley Walker]

That's how I feel. I am looking at a limit of $13,000 tops before walking.

 

[lkreh]

I guess the dealer can ask for that much, but it would be crazy to
actually pay it. 4 year old Outback with 75,000 miles...I wouldn't pay
more than $13,000 and don't let them tack on any "dealer prep" fees for
cleaning the car, etc. The same car in a for-sale-by-owner scenario
wouldn't get more than $11,000. I'll bet the dealer paid about $7,500
for it on a trade-in.

 

[Jim Stewart]

I guess the dealer can ask for that much, but it would be crazy to
actually pay it. 4 year old Outback with 75,000 miles...I wouldn't pay
more than $13,000 and don't let them tack on any "dealer prep" fees for
cleaning the car, etc. The same car in a for-sale-by-owner scenario
wouldn't get more than $11,000. I'll bet the dealer paid about $7,500
for it on a trade-in.

Exactly. Keep in mind that if you pay $15,900
for this car and for whatever reason, you need
to turn around and sell it, you *won't* get any
more than 10-11k for it. Probably less.

I like to pay cash and I heard what you said
about how much you want to pay, but if it were
me, I'd put the $15,900 down and pay off the
rest over 2-3 years.

 

[Bradley Walker]

Yes, they both indicate around $13,600 as the price which is about the limit
I would go before walking.

 

[Bradley Walker]

I wholeheartedly agree. Most likely I'd ask flat out for $11,000 straight
up and say I would write out a check on the spot. I figure this is a good
figure because $13,000 would be the utmost limit and my 93 Explorer is worth
$2,000 roughtly. Although would this be a good negotiating tactic/scenerio:
Upfront discuss the vehicle price and not the trade in. Settle in on a
price for the vehicle (i.e. $12,700) and then have the salesman sign a paper
stating his name and that he is selling on behalf of the dealership and that
the agreedprice by both parties is $x.xxx. Then bring up trade in value and
ask to have it appraised and negotiate over trade in price. Or would the
dealership see this tactic and appraise my explorer at less than it is worth
if I negotiate the car price down low enough?

Brad

 

[Rick Courtright]

Hi,

Try the Kelly Blue Book site, www.kbb.com, where you can run the vehicle
for three price ranges: trade-in (what that dealer likely gave), private
party (what you'd likely pay the guy down the street with the "for sale"
sign in the window) and dealer, which you've seen.

As others noted, the dealer's probably got about a 50% profit margin
built in right now for a starting point. I'd guess he averages around
10-15% on most of his new car sales, perhaps 20% with incentives, etc.
So you can see what kind of range you might have to work with.
Personally, I'd think it sounds like a $10k car, but I'm accused of
being overly frugal with what I think used cars are worth.

Good luck,

Rick

 

[bigjim]

The standard markup in NJ is $4000 on a good tradein.

 

[Bradley Walker]

I don't plan on selling it. In fact I will probably keep this car, or
whatever car I get till the 300,000 mile mark if not further.

 

[lkreh]

I would negotiate and *finalize* the trade-in value of your explorer
first. Nail that down. The trade-in value should be agreed upon in a
vacuum, without consideration for which used car on the lot you're
buying. Then negotiate the price of the Subaru. If your squeal point
is $11K, I wouldn't make that your first offer. I'd start at $10.5K
and then as a gesture of good faith negotiating, come up to $11K. When
you get to $11K, I'd stress to the salesman that it's a simple fact
that $11K is all you can afford and all you're gonna pay. I'd be
prepared to walk if they don't take the $11K because, it may be a great
car, but there are better deals out there. If you get everything you
want on the tradein and subaru price, don't backslide on the dealer
prep fees for cleaning the car, etc.. They'll get pretty pushy with
such fees, but just politely and firmly refuse to pay it.

Just my two duckets,
MCP