What do you guys think I should do? If I could talk them down to the true market value, which would be closer to $6000-7000 (at most), I'd happily buy it. Its EXACTLY what I'd be looking for.
Assuming the Miata is mechanically sound, it is worth
$4,000, tops. Your buddy "Goose" probably saw how young and inexperienced you were and assumed you were a ripesuck.
$11,000 is "stupid money". Your response shouldn't be to point out it's "a little high", but to laugh in his face. Keep grinning for a minute while shaking your head slightly and chuckling, just to make your point clear.
The mileage adjustment isn't $7,000. It is more like $600.
A '94 Miata can be bought at dealer auctions all across the country for less than $1,000. One with only 42k on it is rare, but doesn't suddenly make the car triple in value.
So if you're serious about negotiating for this car, here are some things you need to keep in mind.
-The dealer probably acquired that car for less than $2,000. If they paid more than that, they screwed the pooch. And that's not your problem.
-They will hype up the low mileage to distract you from the fact that their car is basically worth chump change. Don't let them. Low mileage or not, it's still a 15 year old car. And it's a Miata ; not a gullwing Mercedes.
-Most used car dealers need to make $1,000-1,500 on a car just to pay the bills and stay in business. Everything after that is profit. So let's be generous and assume they payed the 2k to acquire the car. $3,500 would then be their absolute bottom line on this vehicle, assuming they did not need to shell out some additional money to make the car ready to sell (like tires or mechanical repairs).
I would offer them $3,200, which is low, but in ballpark. Let them know you are serious by showing up at the dealership with cash. Don't wave the money in his face, but indicate you are making a serious offer and show him the money if he doesn't believe you.
He will most likely not take your offer seriously. He'll waste your time for 10 mins and try every trick in the book to make you think you've made a mistake.
You didn't. Don't forget that.
Just calmly and politely tell him you know (roughly) how much they paid for their car. And point out exactly how much profit they will make if they accept your offer. ($1,500 on a $2,000 car) He will respond to this by
lying to your face and say they paid 6,000 or some such nonsense.
When he tells you this lie, just laugh and say "I'm sorry you paid too much for your car. Maybe you should hire me to be your buyer, because I won't ever get screwed like that." Smile when you say it, like you're telling him a joke. But look him in the eye and let him know you're serious.
At some point, be prepared to offer him a bit more, just to let him know you are negotiating in good faith. Either one of two things will happen: he will either blow you off or "go see his manager" to see if they'll take your offer.
If he blows you off and lets you walk away, then they probably have too much money in the car or are willing to wait for a long time to find the ripesuck who will pay $8,000 for a $2,000 car. At that point, you need to decide how much you're willing to pay for the car.
If he "goes to see his manager" then you're in the ballpark. Get ready for some serious negotiating because they will put you through the grinder. You could be there for a couple of hours going back and forth. They will send the used car manager to work on you. Maybe even the sale manager himself. Hell, one time, a salesman and I agreed on the price, and then the
finance manager wanted a shot at me!
IMO, $4,000 would be a good deal on that car. Anything over 5 is excessive. But if it is EXACTLY what you are looking for, then it is up to you to decide what that's worth to you.
Oh, and of course, don't forget to get it throughly checked out. You don't want a Katrina car or one with a salvage title.
Coincidently, I'm in the middle of my own car buying process right now. We're look for a very low mileage, CPO Audi A6 or Allroad Quattro for my wife. So negotiations are very much on my mind. The info I just posted reflects my own research and experiences. I'm not guaranteeing your are going to get the best deal of your life if you follow my advice, but it does tell you how not to pay way more than you should for a used car.
And keep in mind that playing tough may ultimately backfire. A ripesuck could walk in the dealership any minute and give them exactly what they want. So ultimately, it's up to you how much ground you want to give.
M
