Purchasing 2001 Outback L.E.

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

Forums

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.

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

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.

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

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.

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

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

Hi,

Try the Kelly Blue Book site,

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

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

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.

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