| BillHeart |
Today's amusing deal, not at my store tho...friend of mine who is the General Sales Manager at a Toyota store mentioned this. To be fair, they even asked the customer if they were sure they wanted to do this...
Customer has a 2 year old Expedition XLT, 24k miles, leather, moonroof, nice shape, worth about $12k wholesale right now as it does have Nav + RES.
Scary, isn't it?
Customer owes, get this, $30,000 or so on it.
Even scarier, isn't it?
Customer decides that they NEED a Prius. Customer wants to go from 15mpg to 40mpg. Customer drives 1k miles per month. At $5/Gallon that means 15mpg is a gas bill of $330 a month versus $125/mo with the Prius.
So they will save $205/mo by buying a Prius, IF GAS WAS $5 A GALLON (It isn't, it's about $3.90 where they are).
Since new Priuses are on the "Wait 6 months to pay $1k+ over sticker" they pay $26,995 and buy an 07 with 26k miles on it.
The Prius only has a retail Value of $23k per NADA (Granted they are doing more than that at auction right now) so the Bank will only loan about $29k on the Prius.
Customer writes a home equity check for the $18k negative equity and finances the Prius.
So, they were paying $500 or so a month to lease the Expedition, now they are paying over $550/mo to buy the Prius.
On top of that, they are on, if I heard correctly, a 15 year HELOC at 6.75%.
That's $159.28 FOR FIFTEEN YEARS assuming I heard correctly.
$500 becomes $709.28+
TO save $205/mo on Gasoline and that only assumes that Gas goes to $5/gallon.
What was that saying in Forrest Gump? "Stupid is or Stupid does?"
I don't know who's crazier right now. The people buying 07 Priuses for what I am selling 07 CPO TLs for, the dealers paying over MSRP for used ones, or the people trading out of these guzzler SUVs for insanely low values.
Nuts I tell ya... nuts.
(And before Jeff jumps all over me, Priuses are that hot right now, they are bringing over original MSRP for used 07s and even marking them up $3-4k over that will get you a sale within a couple of days, no, I don't buy them, I hate the little turtle looking things) |
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| midnightMDX |
Wow, a 2 year old Expedition is worth that? Thats nuts. And for them to take out a loan and equity for a Prius. :eek: That is totally messed up. Panic selling.
This guys is selling his MDX to get a Prius.
http://acuramdx.org/forums/showthre...&threadid=32867 |
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| JeffK |
Bill:
Thanks for the story:
You are right: "Stupid is or Stupid Does!"
Absolutely makes no sense at all.
Jeff |
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| carguy1234 |
Bill, nice story. Another case of someone being "penny wise and pound foolish".
This guy would probably be one of those that drives 50 miles out of his way to save 15 cents a gallon on gas. |
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| BillHeart |
You guys have no idea how cheap Domestic SUVs with V8s have gotten, it's almost comical.
Literally, they are dropping in value as much as $500 a week.
I took an 05 Expedition in on trade a week and a half ago for over $2,500 under any value you can find on the web, it was a stretch to make a deal.
if I haul it to the auction now I stand to lose $$ on it!
Oh yes, Black/Grey, 05, 41k miles, Navi, RES, Parking radar, Leather, running boards, Roof, it's loaded to the gills. And it's not even worth $10k at the auction. It's actually hysterical what some of these are selling for, but you know something, you'll think that I am nuts, but I'm starting to see demand on these pick up a bit... seriously.
If I throw that Expedition out front and put $11,995 on the windshield, it's going to attract attention. Especially when it's parked next to a couple of 05 MDXs for $22-26k, it's just SO cheap that it's hard to pass up. and it has ALL the toys in it, it's big, it's shiny, and it's less than an 05 Civic LX. Guy I know is a used car dealer, he's selling a fair number of Escalades. Yes, Escalades.
Throw a 2005 Escalade AWD with Navi out front, 40k mile rig, put $18,995 or $19,995 on it, that's so incredibly cheap that it's very tempting.. I mean, I can't sell a 40k mile CPO Base MDX for that, and the Escalade was $20k more when new!
And he's grabbing 02s with, say, 75k on them and throwing them out there for $13,995 or $14,995. Even with gas prices where they are, that's just incredibly tempting for an awful lot of people.
Meanwhile, anything that is an SUV or Crossover and hauls lots of people is pretty strong right now. MDXs are dropping like everything does during the summer, but they are holding up better than I thought. Pilots are doing OK but there's TONS of them out there, Honda put out some crazy leases 3 years ago and the market is megaflooded. Those GM Crossovers are bringing silly money.. 7 or 8 passenger, 25mpg.. they sell.
The weirdness is really amusing to watch from where I sit, meanwhile I'm buying every last off lease TSX and RSX I can... and MDXs too for what it's worth. |
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| carguy1234 |
| Bill, I'm curious to know how Minivans are doing? I've noticed two neighbors on my block have dumped Suburbans, one for an Ody and another for a Sienna. |
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| BillHeart |
Depends on the van, but Odysseys are still holding up very well. Our Toyota store mentioned that Sienna sales are a bit off, but the entire market is off a bit, with a few exceptions (4 Cyl cars, Hybrids, Diesel cars, etc)
From what I see, Siennas are still pretty strong wholesale and the volumes don't seem to be down either. |
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| wasjr |
| These are the kind of folks that keep piling on debt and when their house goes down in value, or their mortgage rate goes up, and they can't make their payments, will want you and I to bail them out (which is what congress is about to do). |
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| bigpecs1 |
quote:
Originally posted by wasjr
These are the kind of folks that keep piling on debt and when their house goes down in value, or their mortgage rate goes up, and they can't make their payments, will want you and I to bail them out (which is what congress is about to do).
I dont agree with what congress is trying to do, i.e. bail out people who have taken on more than they can handle, and those banks that gave out bad, high-risk loans. Financial expert Dave Ramsey was asked about this in Fox and said the same thing. |
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| kingmdx |
You know I just saw this thread but it's not much of a shock that people are this crazy... people should do that math first before they make these kinda decisions.... gas prices would nearly have to tripple where they are now for me to get out of the X ..and even so it would be probably better for me to keep it and just buy something to go with it that's more efficient... I will do the math as time passes.. wish other people would too ....
The used small car prices are rediculous... i'm trying to get a car for a family member for college and it's amazing that dealers are trying to sell me used cars for more than the price of the car when it was new...I hope i can find something at a decent price eventually but i'm not parting with my money until them ...someone will be taking the bus until I feel comfortable with these prices :p |
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| hammermdx |
quote:
Originally posted by BillHeart
Today's amusing deal, not at my store tho...friend of mine who is the General Sales Manager at a Toyota store mentioned this. To be fair, they even asked the customer if they were sure they wanted to do this...
Customer has a 2 year old Expedition XLT, 24k miles, leather, moonroof, nice shape, worth about $12k wholesale right now as it does have Nav + RES.
Scary, isn't it?
Customer owes, get this, $30,000 or so on it.
Even scarier, isn't it?
Customer decides that they NEED a Prius. Customer wants to go from 15mpg to 40mpg. Customer drives 1k miles per month. At $5/Gallon that means 15mpg is a gas bill of $330 a month versus $125/mo with the Prius.
So they will save $205/mo by buying a Prius, IF GAS WAS $5 A GALLON (It isn't, it's about $3.90 where they are).
Since new Priuses are on the "Wait 6 months to pay $1k+ over sticker" they pay $26,995 and buy an 07 with 26k miles on it.
The Prius only has a retail Value of $23k per NADA (Granted they are doing more than that at auction right now) so the Bank will only loan about $29k on the Prius.
Customer writes a home equity check for the $18k negative equity and finances the Prius.
So, they were paying $500 or so a month to lease the Expedition, now they are paying over $550/mo to buy the Prius.
On top of that, they are on, if I heard correctly, a 15 year HELOC at 6.75%.
That's $159.28 FOR FIFTEEN YEARS assuming I heard correctly.
$500 becomes $709.28+
TO save $205/mo on Gasoline and that only assumes that Gas goes to $5/gallon.
What was that saying in Forrest Gump? "Stupid is or Stupid does?"
I don't know who's crazier right now. The people buying 07 Priuses for what I am selling 07 CPO TLs for, the dealers paying over MSRP for used ones, or the people trading out of these guzzler SUVs for insanely low values.
Nuts I tell ya... nuts.
(And before Jeff jumps all over me, Priuses are that hot right now, they are bringing over original MSRP for used 07s and even marking them up $3-4k over that will get you a sale within a couple of days, no, I don't buy them, I hate the little turtle looking things)
What a dope!!! |
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| BillHeart |
One overheard today....
Customer likes the MDX over the X5, but the X5 comes with free scheduled maintinence, MDX does not. We offer to include scheduled maintinence, they like the MDX better, MDX is still $100 a month less.
Their reasoning?
"Well, you guys are just adding the maintinence to the price of the car, BMW gives it to us for free"
"But even if we include the scheduled maintinence, the MDX is still $100 less per month than the BMW and you like the MDX better, right?"
"Yeah but BMW includes it for free"
:banghead: :banghead: :banghead: |
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| JeffK |
| Stupid is as Stupid Does! |
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| shootist |
| The scary thought is that they can breed, and reproduce. |
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| acurans |
| Think how much better off we would be if Acura included it in the invoice and selling price. Then those of us in the business would not have to try to explain to people like this that this is exactly what BMW has already done. That Bluw and White symbol on the front of the car is worth lots of money. I can hardly wait to hear them cry when they try to trade the beemer in a few years down the road - OUCH! |
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| BillHeart |
quote:
Originally posted by acurans
Think how much better off we would be if Acura included it in the invoice and selling price. Then those of us in the business would not have to try to explain to people like this that this is exactly what BMW has already done. That Bluw and White symbol on the front of the car is worth lots of money. I can hardly wait to hear them cry when they try to trade the beemer in a few years down the road - OUCH!
BMW's Ultimate Service is a fraud IMO. But what is Acura really going to include over 4 years or 50k miles? 3 oil changes and a set or two of wiper blade inserts?
I've seen BMWs not trip the service indicator until close to 15k miles. And as soon as BMW included servicing, the cars magically needed dramatically less time in the shop.
If I bought a new BMW and intended to keep it for a while, no way would I go 10-15k miles on oil changes. |
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| hpowders |
quote:
Originally posted by BillHeart
BMW's Ultimate Service is a fraud IMO. But what is Acura really going to include over 4 years or 50k miles? 3 oil changes and a set or two of wiper blade inserts?
I've seen BMWs not trip the service indicator until close to 15k miles. And as soon as BMW included servicing, the cars magically needed dramatically less time in the shop.
If I bought a new BMW and intended to keep it for a while, no way would I go 10-15k miles on oil changes.
I am returning a leased 2005 BMW 545i soon. About 6 months ago, the car wasn't turning over right and the check battery indicator came on. I drove it to BMW and they kept it overnight, performing diagnostic tests. They gave it back the next day and I immediately got stuck in a shopping center parking lot with a dead battery. Waited almost 3 hours for the BMW assist tow service and brought it back to BMW. They tried to pin the dead battery on me, claiming I didn't drive the vehicle often enough (9000 miles a year). Finally, they replaced the battery free like they were doing me this big favor under the free 4 year maintenance plan. To add insult to injury, the service manager begged me to rate them highly on the upcoming service survey phone call. Of course, I didn't and for my trouble, BMW sent me a free shirt and pocketbook for my wife, both proudly displaying the BMW emblem. No more BMW's. The free maintenance is a gimmick.:mad: |
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| midnightMDX |
quote:
Originally posted by JeffK
Stupid is as Stupid Does!
+1 :eek: |
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| BillHeart |
Some more from the "So much for what the media says" pile...
We have a lot of MDXs in stock, but our sister store in Jersey is running out of them. So we're swapping them 4 MDXs today for 4 TSXs that they have sold.
They have TSXs piling up apparently and we're in desperate need of them.
Go figure.
Just took a Corolla and a Civic in on trade towards a new MDX.
Jetta TDI coming in towards an RDX! :eek: |
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