|12-02-2013, 04:02 PM||#106|
I'm the Decider
Joined: Nov 2002
Location: Houston, TX
Most of our buyers (around 65%) pay cash, which is good, because I hate doing paperwork! Other strong Ferrari markets, namely FLA and CA do a lot of leasing however, mainly because in those states sales tax is paid only on the monthly payment, whereas in TX you pay sales tax in full, up front, on leases. On a $300k car that's nearly $19k up front. We do a fair amount of financing on pre-owned Ferrari's in the $100-200k range, which is basically now what we consider entry-level. Over the past couple of years we do see a bit more financing on new Ferrari's, but it's mostly the usual cash buyer who figures if he can put down half and finance the balance for less than 2% that he'd rather keep his cash invested where he has a higher return, or liquid so he can jump quickly on a good business or real estate deal.
We have a waiting list for all new Ferrari models, and it ranges from 8-24 months, sometimes longer. There is no price negotiation on new Ferrari's, though trade-ins and pre-owned cars are still negotiated to some extent. Most clients keep their new Ferrari around two years, and the art is really having the relationship that allows me to help them move from model to model at the right time in the cycle, while resale is still at or near new-car levels and the changeover cost to the client is minimal.
'11 Ducati Multistrada 1200S Sport "Stormtrooper II"
'09 BMW HP2 Sport
'98 Ducati 900SS Final Edition "The old whore"
'93 Ducati 900SS "Slightly older whore"
"Gentlemen. You can't fight in here. This is the War Room!"
|12-08-2013, 08:18 AM||#107|
Joined: Oct 2007
I haven't bought a new car since 97. when I showed it to a friends dad he directly let me know I was a fool. "why would you spend your money in something that loses 20% of its value overnight?" he was right,
around here the mega dealers, when they are done fudging the numbers, actually only give you about 30ish percent of NADA for your trade.
especially for anything more than 2 yrs old.
they don't want all the costs of going to the auction. they tack a couple hundred $$ and sell them to some local used dealers w/o putting a dime into them. the used guy then puts them on his lot for NADA retail.
knowing this if I see something that interests me , I go by when they are closed & write down the VIN and check carfax. not real good but tells me how many times its been registered. I then go to the service dept of the new dealer of that brand. I tell them I'm thinking if buying the vehicle w/ said VIN and want to make sure any recalls have been addressed. this usually tells me that and what warranty repairs have been done.
I then decide how much I'm willing to offer. so far I've been able to score some great deals for friends & family.
in 09 picked up an 03 Altima for my son w/ 60k loaded that was bought new in tn an traded locally carfax said one owner. car was in mint condition. paid 4k cash it was on his lot 2 days. I drive by his lot daily. the kid has put 50k more miles on w/ zero issues.
last yr picked up an 03 pt cruiser mint cond for the wife (her idea not mine) w/ 67k mi on it $2500
tues I pick up an 02 outback wagon bought new at the local dealer. I checked on recalls and the service guy says buy it. turns the computer screen towards me and it showed all service records since new. oil changes, coolant changes etc per mfg spec since new. car has 125k mi a tiny bit if rust & brand new tires. I paid $2100 for it. not mint cond but nice for the abuse that I will be inflicting on it.
I make the offer the guy either accepts or doesn't . he makes a couple bucks I save a couple. all is good. I've been burnt a couple time. w/ bad trans but in cost per mi, I'm miles ahead if a guy I work with that walks into the mega stealer, points at a new pick up a lets the sales man know that he wants it but he ain't paying a penny over $600 / mo for it!!!!!
salesman says he has to check w/ his boss they both blow a load then tell him they're gonna give him a deal at $595/ mo. for 84 mos
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|12-08-2013, 10:26 AM||#108|
Joined: Aug 2010
Location: green bay, wi
Thursday i was at the dealer picking up parts for my sled and got to listen to the owner and a customer go at it about price on a new sled and the customers 4 year old sled he wanted to trade in. The owner laid out the price OTD of the new sled best he could do and basically told the guy he didn't really want the trade in and would have to low ball it to break even trying to sell it.
The customer was all pissed because the sled is pristine and nada says this amount so he better get that even thou the sled wasn't even there. There are some cases where trading in the car makes sense for both the dealer and the buyer but usually it just messes things up and you're not gonna get as much as you would selling it as they need to make alittle bit of money on it.
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