Dealers are crazy

[vone]

I was just at a North Jersey Dealer. He had a LB c6 Z with 771 miles on the clock for 87 K They said it was picked up at the auction for 82 K I think they are full of

Vone

[maineyak_2000]

Yeah I Guess I think they are nuts to have paid that but then perhaps they will find an eager buyer with lots of cash..

[defender]

Originally Posted by vone

I was just at a North Jersey Dealer. He had a LB c6 Z with 771 miles on the clock for 87 K They said it was picked up at the auction for 82 K I think they are full of

Vone

It certainly could be true that they paid stupid money for it from an auction. They are speculating that they can flip it quickly for a fast buck while they are still super-hot.

I purchased a 1993 Land Rover Defender 110 in December 1992 at an MSRP of $40,000. 7 years later, with 12,500 miles on it, I sold it back to my original selling dealership for $70,000! Because he had a buyer lined up for it at over $80,000!!! So, I lost the crown jewel of my Land Rover fleet. But I made $30,000 profit on a depreciating asset!! Enough to put a down payment on my house. So - I could have been mad at the dealer making $10,000 for doing nothing. But in reality they provided me with a buyer and I didn't have to do anything! No dealer would have tied up that much money on an out-of-warranty vehicle that few banks would advance that much money on. So these guys with the C6Z are actually not taking too much risk. At this point.

[vone]

They were telling me Dealers in California are paying 10K for each allocation. I think they were getting 6 cars

[gsjack]

I don't blame the dealers.........

If someone is willing to pay the piper, then blame the stupid consumer.
My .02

Jack

[jjwvette]

For 20k I can buy a lot of mods

[SMFCPACFP]

A dealer can buy this car for $58,000 minus a hold back. Unless I had a buyer who put down the potential loss as earnest money ($82,000 - 58,000 - used car write down), I can't fathom a dealer doing this. I used to be a dealer.

[8 SNAKE]

Originally Posted by SMFCPACFP

A dealer can buy this car for $58,000 minus a hold back. Unless I had a buyer who put down the potential loss as earnest money ($82,000 - 58,000 - used car write down), I can't fathom a dealer doing this. I used to be a dealer.

I agree with you, I don't see that a dealer would possibly do this. First of all, if a dealer bought the car used at an auction they wouldn't gain any new allocations for the next year from the sale. Second, I don't see them risking a cash outlay of $82,000 on the POSSIBILITY that they could flip it for $87,000. It just doesn't make very good business sense at all. I could be wrong, but nothing adds up.