cue

Another anecdote: I just bought a CPO 2013 Golf R last week. Unique vehicle so I conducted a nation wide search; I live in suburban Chicago. Tried to negotiate with a Philly dealer on a 2012, 18K miles. Asking price $26,818. Would not budge. Said they took it in on trade for $24,000, and had to replace a lower cracked grill, 4 tires, dents, CPO inspection, etc. So they have $1,700 into it. They showed me the service record. (Can't believe they paid that much in trade as KBB says its worth $18 - $22K).

Then a 2013 34K miles comes up for sale in WI. Asking price $28,500. Off lease, new tires, $1000 "into it". I cut to the chase and said "why should I buy your vehicle instead of the PA vehicle?" They immediately lowered the price to $26,800. I offered them $26,000 and they accepted.

On another board, the proud new owner of the Philly vehicle posts pictures of his purchase. PM'ed him and found out we were negotiating for the same vehicle at the same time! When I backed out, they sold it to him for $26,300.

During negotiations, I based my initial offer prices to the PA dealer on 3 year lease residual factors of 55 - 60%. On other CPO Golf R's, it seems "the going rate" was 65 - 70%, but you get the idea?

Dealers will always act insulted by lower offers; saying "we have more into it than that. . . we would be losing money" When I ask them to prove it, they never show me the actual trade in worksheet, or the lease paperwork. They're not losing money. . .

mlingama

I was in the market for a 2016 CPO A6. Found a basic one in Des Moines four week ago. It was listed for $50,500. It was a basic 3.0 with heated seats. I offered $47k but he said that the best he could was $49.5 as they have $49,030 in it. Which is a lie cause the Edmunds value is $44k at best, I'm sure they didn't pay $46 and add CPO. It is now listed for $48,990. If he just met me half way, I would have bought.

When they don't come close to your deal, walk away.

DanfZX14

They're often referred to as "the stealer" for a reason!

1st Time Audi

For, I think you start with the MSRP...then you can think about what you would pay for it new, maybe 10% off MSRP. That's the math to see how close new and used is in price. Then I start working backwards on depreciation and look at valuation sites. A lot dealers around here use NADA values.

That's how I got to a 1 1/2 year old CPO at about 25% off MSRP. From my experience, most dealers don't have as much room to move as they do on new cars. $1-2K off list is about as much as I have had

mlingama

Do you mean Dealer list? If so them they have a huge amount of leverage. I know of someone traded in their Audi, for $40k and then the dealer did some prep, CPOed and listed for $48k.

1st Time Audi

Yes, the dealer list. That's why I start with how much I could buy and trade the car for.

So a $40k car, CPOd would be more like $43 at cost, plus a buffer, plus minimum of like $1K puts the car at $45K. There's a chance they had to do some additional work to run it through CPO. Do you know what the car actually sold for?