$400 off for a "new" car

[SunnyGL]

Hi y'all,

lurk a lot, don't post much.

don't be confused by my heading - I got to within $400 for a near new G37xS

Here's the story.

I have an '05 G35x which has just clocked up 60k miles. i bought it July '08 with 45k on it. A little while ago I could detect an increase in noise from somewhere up front. I thought it might have been an exhaust manifold problem - it was a droning kind of sound -but I couldn't detect any issue in the exhaust system when i inspected it, but in fact it was right front wheel bearing, which gladly is covered under the powertrain warranty. Yay for the better warranties on these vehicles.

So to the dealer it went last week. They changed the bearing but were unhappy with the replacement so I found myself in an '08 G35x loaner (my impressions of the '08 can be another post!). While at the dealer I inspected the new M and the G37 and it started.....

Hmmmm, what sort of deal could I get to upgrade? So, I didn't get back to the dealer until Saturday and asked to take a new G for a run. Salesdude turns up in a 20th aniiv model xS. I liked the red seats but felt that they didn't match the rest of the interior. Still it was nice although living in a metropolitan area i didn't get to exercise it much. I like the paddle shifters very much and didn't feel the ride too compromised. I fit the seats well enough.

I had this crazy thought that maybe I could just trade my '05 for a 3 year lease on a new 37x, prem, nav, not S. Well the usual negotiations began and they came up with something like $50pm for 36 months @ 10k/year with my current car as a huge cap cost reduction. Residual was 61% at around 26k, which seemed high and not too attractive because I would have liked to buy out at the end. Leases have too many hidden costs so i declined.

In a follow up call i mentioned I'd consider a straight buy. Today they call and say there's a near new xS available, a car run for a few months by a manager, 2800 miles on the clock - supposedly it has been titled. I pop in after work and the new negotiations start. I say at the outset that I'm only going to jump on a killer deal. They offer that xS' are high demand and show a reduction of a few hundred dollars off msrp on brand new (about $42k for an xS). This seems counter to what i have seen on Edmunds forums in particular where $4k-5.5k off seems typical. They offer the near new one at 37.7k. I offer 20k plus tax and fees (about 21.6k in real money) and my 05. The sales manager comes down to 20.4 and says enough so i walk - I decided to stick to my guns since the brain says "don't be silly, you don't need a new(er) car".

So here's my thinking
msrp with dest for a 37xS is 42k plus extras
typical reductions are 4-5.5k, I'm mercenary so go with 5.5k (I've seen ads for up to 7k off msrp for that "one" off that are always sold)
42-5.5 = 36.5
now a near new, lightly used, '10 should lose , what 10% more?
0.1 x 36.5 = 3.65, let's round so 36.5-3.6 = 32.9
Nada and kbb put my '05 at 13-14k (yeah I know, they're not that accurate).

So 20,000 + 14,000 trade = 34,000, seems fair enough to me.

They're telling me that they're losing their shirts over this - nonsense in my view.
I stuck to my 20k, the sales manager came down $100 a time to 20.4 then called in quits.

Well, the heart says do it, the mind says "are you nuts?"
what to you guys think?

My '05 has suffered a little at the hands of my work parking spot- several nicks/ scrapes on the rear bumper and one noticeable scrape low on the rear passenger side door -metal not creased but paint damaged. Really pisses me off and makes me think twice about a newer car - it's valet- I have to leave my keys and it's parked by others. I know of one occasion where my car added 2.5 miles from when I dropped it off.

cheers
SunnyGL

[Poyzinous]

I think you need to go with your gut feeling.

[SunnyGL]

I think you need to go with your gut feeling.

My gut is lower than my heart and mind. It's looking forward to lunch so that's about the only feeling it has at the moment

Had the phone message with the usual "you're willing to lose this car for a mere $400". So I'll raise them -"you're willing to lose a sale for $400?"

Well more seriously, I want the newer one but don't need it. I should save me money and continue with what I have.
Unlike some people in the NE region the $21.6k this will cost me is more than chump change. I say this because I'm aways amused that houses featured in the Sunday paper are often way more than the median family income in this state can support (~$65k IIRC). So who buys them? And there's no shortage of houses that cost 3/4 mil and up around here.

cheers
SunnyGL

[SunnyGL]

I should clarify. I'm interested in opinions on how much depreciation I can allow for on a near new vehicle. I've allowed 10% from what I consider a keen selling price on a new vehicle. I've always figured that if you bought a new vehicle and needed to sell/trade it 6 months later you're looking at 15-20% off what you paid - not 15-20% off msrp.

As an example, last year we clunkered our 98 Jeep for an 09 Honda Pilot as the family hauler. Going to kbb now it says my Pilot is worth $50 more as a trade than what we paid for it! Surely not! In reality, I'd expect a dealer to offer around $24k, maybe a bit more.

cheers
SunnyGL

[telcoman]

I should clarify. I'm interested in opinions on how much depreciation I can allow for on a near new vehicle. I've allowed 10% from what I consider a keen selling price on a new vehicle. I've always figured that if you bought a new vehicle and needed to sell/trade it 6 months later you're looking at 15-20% off what you paid - not 15-20% off msrp.

As an example, last year we clunkered our 98 Jeep for an 09 Honda Pilot as the family hauler. Going to kbb now it says my Pilot is worth $50 more as a trade than what we paid for it! Surely not! In reality, I'd expect a dealer to offer around $24k, maybe a bit more.

cheers
SunnyGL

Drag out the negotiations till December. Keep going back every month or so.Eventially you'll get a good deal

Telcoman

[SunnyGL]

Update,

Well, they accepted my offer. The car is listed at $38868. I'm figuring I'm getting it for about $33-34k.

It's not certified - now I can be really cheeky and ask for that! Who pays for the CPO part, the dealer or Infiniti?

Telcoman, I've seen your philosophy on car buying but now is the hour... They'd probably shoot me if I kept turning up trying to steal a deal from now 'til December.

cheers
SunnyGL