Re:As Carvana crashes, used car dealers, not buyers, stand t...
by tptacek on Monday December 12, 2022 @12:00AM
(#33951060)
Like I said, I'm well aware that I'm not getting the absolute best price at Carmax; that's part of the premise. What I am getting is a month to drive the car and swap it for any other car, or a refund. That's hugely valuable.
Re:As Carvana crashes, used car dealers, not buyers, stand t...
by CobaltFire on Monday December 12, 2022 @10:16AM
(#33955490)
Coincidentally this arrange to bid is exactly the process most military moving to Japan use with local mom and pops. Works excellently.
Places like Carmax buy a car, mark it up $2k, and sell it making most of their money on financing and warranty/service stuff. They mark vehicles down something like $500 each month for two months then put it right back on the auction if it doesn't sell (so you'll generally get better deals from vehicles that have been on-lot a while). This is why they refuse to negotiate price.
You may get a slightly better price than the dealership, but not by much when you consider every single factor.
If you want the best possible deal, know the car you're looking for and offer a fixed finder's fee to a mom and pop used dealership to buy it for you. A lot of these smaller dealers will give you a good, fixed rate because it's guaranteed money to them without that normal overhead. It may not be strictly allowed (due to NDAs and such), but some may even allow you to help pick out the vehicle to bid on.