agree 110%
Two years ago i bought a then 3 year old F350 ... used with 27,000 miles on it. It was a 4 door, 4x4, diesel automatic.
They wanted $24,000 but i got it for $16,000 CASH out the door (plus sales tax and lic and insurance though). So heres a 3 year old truck for 16,000 that has the original sales sticker inside the glove box that read $48,500.
So some other schumk wasted 32,000 of their money and i get a nearly new truck with very low mileage for a song.
Except for a transmission temp sensor, the truck has worked flawlessly.
Good point on buying used to say debt free or get that way quicker.
Many USED vehicles on dealer lots can be bought for near dealer trade in value (book because the dealers give less than book) if they have set on the lot for 90 days.
Why?
If the dealer (can vary from brand to brand) sells you a new vehicle for $50,000 that cost him $40,000 and gives you $15,000 for your trade-in he is $5,000 in the hole cash wise because $40,000 was taken out of his bank account when the sell was entered into the system.
Let a vehicle set on his lot for 90+ days and show him $16,000 cash if you really want to buy the vehicle because the odds are you will have just bought yourself the vehicle. It is all a cash flow matter.
Now if it is a hot item it will be long since sold when 90 days roll around. The number of buyers of 350 4WD diesels are relative low. Had it been a F150 with a much broader market it may not have been on the lot.
As noted before in 2010 we got a 2003 Escalade with 102K miles for $13,000 vs the $17,000 starting price. I would not even test drive it at the $17,000 so the manage sent back the deal of the day price of $14,500. I said would drive it home for the wife to test drive but they had to get serious on the price because I only buy wholesale.
When I got back a few hours later (home was about an hour away) they said make an offer and I offered $12,000 cash. They ran backwards like they are trained to do but then knew I was serious that I buy at wholesale which I told them up front that morning when I stopped in.
The sales manager stated they were retail and could not stay in business selling for wholesale. I told him I was in business and fully understood what he was saying and that I did not expect him to sell me a vehicle at wholesale and I was fine him not selling on my terms and that my offer was just there in case he wanted to trade his plastic/metal object for my cash and him saying no would make me just as happy if not happier because I would still have my money and the need to the SUV was really just a want.
The salesman and I BS about folks we knew in common, etc and I said I had to go because it was 4PM and I had not had lunch. He then came back into selling mode (actually was doing it all the time to keep me in the show room) he asked what if he could get me the car for $13K would I say yes?
Well I knew what the manager was going to say or had already said on that deal. I said I knew what he was going to say and was not sure but I was going to the back of the lot where they had me park and get my Blazer and he could let me know what the manager said. When I got back up there the guy was waving from me to pull over and park because we had a deal at $13,000.
Okay that was long. The background was they had a GM vehicle on a Ford lot. They had sold it once but the bank would not play. It was over 90 days old. They knew I was serious about only paying wholesale ($13,000 was above their cost I am sure) and it was 4 pm closing time on a Saturday afternoon. 18months/13K miles later all is well with the car. This will work over and over if you are not real picky and demanding a vehicle today. Active dealers taking in late model trades can develop real cash flow problems. You just have to out sale the dealership.
They are suckers for large chunks of cash :thumbsup:.
Buying used vehicles when they are needed can shorten one's Debt Free Date.
