Price check

[49fleetline]

Hi...I'm in the market for a used Tahoe from a dealership. The dealership is asking the low side of retail fair market value. I realize dealerships are not in business to lose money, but nonetheless don't want to pay more than I should and I don't want to insult the dealership with an unreasonable low low-ball offer.

Be that as it may, I'm guessing that even selling this Tahoe retail at the low end of fair market value the dealership will make money...and...it stands to reason that if it sold it at the high end of the retail fair market value (which they easily could with this Tahoe), their profit margin is even better....even more if the market will bear a price that is above and beyond fair market value.

I'm also going to guess that dealerships buy most if not all used vehicles at wholesale so it can be retail priced accordingly to help it move and earn them a decent return.

How is the wholesale price determined on a used vehicle? I'd like to pay somewhere between wholesale and minimum retail if possible. Or is wholesale info sacred and a well-guarded secret? And have I now inadvertently angered the dealership gods who will now strike me with multiple bolts of lightning or a rusty Vega when I step out for even asking this question? Thanks!

 

[Metaldrgn]

Used car salesmen are like homeless people. They wander around the car lot trying to get your money. That was just the thought I had after reading this lol.

In all seriousness, check the bluebook value on it (looks like you did). Test drive the vehicle and listen for anything out of the norm. Look the vehicle over very well. Interior, exterior, engine compartment, underneath, maybe even have a mechanic come check it out. There's a reason they are selling it low. It could be that you lucked out and they are trying to clear some inventory or that vehicle has been on the lot for awhile OR there's something they aren't telling you. Good deals are out there, you just have to be careful. You need to figure out exactly what it needs (tires, paint, body work, etc.) and take that off the average retail price and at the end see what price you end up with. That should be a good starting point to find out if you are getting a good deal or not