proxim2020 wrote:There's a huge difference between someone saying giving you extra 25k on a house and requiring that a purchaser pay an extra 25k. If I was to purchase a house and the seller wanted me to pay 25k over the appraised value, why would I pay? Can they show me the house is worth the 25k more? Even if the house is located in a hot market, what happens when the market has all of a sudden gotten cold. You're 25k in the hole in an area where the property values are probably starting to decline because of the coolness of the market. If we both bought a car and I paid MSRP and you paid 2k over. We had the same terms and same rates. We drove the same amount of miles and had the same wear and tear. At the end of 4 years, you would have paid more in principal and interest even though the cars have the same value. If you want to go into a dealer and offer 2k over MSRP, more power to ya Although the sales guy salary comes from money generated from sales, the portion of the sale given to staff is determined by the owner. So starving salesmen can blame their phat cat owners. I'm not saying go to the dealer and negotiate down to or under invoice and I'm not saying let the dealer eat some of your cost. I'm just saying pay what you should. If you want to pay more, go right ahead. I'd rather take the extra money that would've been paid to a dealer and donate it to a battered women's shelter or help cure some disease.
Read my post again. I said it's a free market economy.
I didn't say anyone HAD to pay over 25K for the house. Geez, read what I posted. I stated if someone OFFERS someone 25K more than what they're selling the house for, they'd take it.
I also stated a car is worth what someone will pay. When the Miata, PT Cruiser, Honda S2000 and others came out at first, many people paid over sticker price. Why? Because that's how bad they wanted the car. Other buyers did not pay that and obviously did not buy the car. To those who paid more, it was worth it.
Years later, people buy these cars for below sticker or at a discount. Why? Market value. It's the same reason people pay $600,000 for a home in CA and $125,000 in Indiana somewhere. The houses are the same but the prices are different. Again, market value.
But my point is, you're stating that there is this magical "acceptable profit" percentage. There is no such thing. The dealer tries to get as much as they can for the car. The customer tries to pay as low a price as he can for that car.
My other point was about trade in and what someone will pay. Let's say you are selling your three year old car. One person offers $9000 and the other $10,000. Which offer are you taking? Of course, the higher offer.
If the Versa was in demand in such a way that there were only a few on the lot and you had five times the number of buyers for them, some WOULD pay $2000 more for it. And if you wanted that car, you would HAVE to pay over sticker or not buy the car.