Pricing used vehicles

[M.T. Pockets]

I don't really like to shop around for vehicles, I know what I want and have a friend in a dealership looking for a GM program vehicle for me. I think they buy them at the GM dealer auctions I just don't know how to negotiate price when they find it.

What is a fair way to price a vehicle straight out from a franchise dealership ? There will be no trade in.

Kelly Blue Book has prices from Retail, to Private Party to Trade In and there is about $5,000 difference from one end to the other. I'm thinking that somewhere around the Private Party price would be fair for a straight out purchase. I think dealers subscribe to Manheim for pricing their vehicles.

Is it out of line to offer the dealer a set profit margin over his cost price before they find a program vehicle ?

I'm in a small market and don't want to travel all over the country shopping for a vehicle, I like this sales person and the dealership's shop. Any suggestions on how to negotiate price when they find a vehicle I like ?

[fabsroman]

M.T.,

Do you actually know what the dealer is paying for the vehicle? If so, I think it is absolutely fine to give them a set percentage above and beyond what they pay for it. I wish I knew what the dealer paid for a vehicle before I had to negotiate on it. I was just talking to my fiance about this subject this morning. I hate buying new cars and haggling over the price. Went through the experience 2 years ago with my truck and it wasn't fun.

I wish more manufacturers would take the Saturn approach (i.e., you pay the sticker price on the car). The manufacturers know what they need in mark up, but they allow the dealers to charge different amounts in different areas through the United States because of the different economic conditions in the United States. Dealers in wealthy areas probably don't cut the sticker price nearly as much as dealers in less affluent places.

Car price negotiation truly sucks.

[hnter]

Call Suss in Aurora, CO it may be a haul from minn but you'll save a bunch o $$$$!!! We did. Suss is a low hassle hi volumn dealer. Ny wifes nephew works for another Denver GM dealer and can't come close to Suss's prices.
hnter