New Low for LS Trade-in

[Smokey]

While I would like another car, I would take such a beating on the LS I will have to keep it for a long time to come. I actually like the LS much better after I got all my SCT Xcal2 stuff switched ovet to it and got some good programming setup for it. Now it's really fun to drive!

 

[SoonerLS]

The LS may or may not have been depreciating at a higher rate than other cars (after all, 60% depreciation in 4 years on a $40K car is twice as much in real dollars as the same rate on a $20K car), but the incredible deals on the new '06es must have a big impact on the resale value of all LSes. After all, if you take a $43K car and sell it for under $27K, you're knocking almost $17K off the sticker price--that's almost 40% off before the car even leaves the lot.

As for the discrepancies among NADA and KBB and Edmunds, they're all in the sampling and the reporting delays--it depends on who they ask and when they ask.

 

[Cruznlife1]

That and I think I saw one LS tv commercial in my life, and it wasnt even LS specific, it had all the models, it was a general lincoln commercial.

Good job marketing

 

[Pete02LSE]

Holy crap...I go away for 24 hours and the thread exploded...

Anyway...I have come to the realization that our LSE isn't worth jack...and had we been smart about it...we would have bought an 02 Tahoe a couple of years ago instead of the LSE (and been much better off for resale value). The biggest saving grace is that our LSE is paid for. So...we aren't upside down and any money to be made will go toward another car. However....

I am floored that when we bought the LSE 2 years ago...we paid 17.5k for it and that it is worth little more than half of that now. We may have overpaid...we may have not...I was being picky and wanted an 02 LSE. But...at the time was in the middle of KBB and NADA wholesale and retail and I take an average of all. As you know...you tend to pay for something that is difficult to find. Right now in the metro Atlanta area...there are NO LSEs for sale...of any year. This clearly doesn't matter unless someone is like me and looking for one. Back to my point...you shouldn't lose half the value on a used car. That's why you buy used...you let the original owner take the huge depreciaition hit.

Like I've said before...this was my one jaunt over into FLM territory and it has not been a good one. Expensive repair costs, a major PITA to work on and pitifully low resale value.

Anyway...I still respect what the LS is...a highly engineered vehicle that is remarkably well balanced.

-Pete
02LSE

 

[ToddG]

Why are the buyers innocent? Is it not up to them whether they buy the car or not? By your logic we could say all buyers are spineless, uneducated, and fiscally retarded because they allow themselves to be "fooled" by a car salesmen.

Not sure your comparison fits. You are comparing purposeful actions by the dealer with buyers who are clueless and do not know they are getting snookered. I think it would be different if the buyer KNEW they were getting hosed and let it happen anyway, but that's not the way I'm reading your statement.

Anyway, the point is that regular people are not in the business of buying and selling cars. Car dealers are, and they basically they take advantage of the situation. They overwhelm most buyers with various numbers (monthly payment, interest rate, downpayment, tradein value, etc). Dealers use all these values to hide the true costs from unsophisticated buyers.

Sure, anyone can walk away from any deal at any time. But what about when the dealer asks you for your keys to evaluate your trade-in, and then conveniently loses them? What about dealers that keep you waiting and waiting for approval from the higher-up managers when their intention is simply to wear you down? What about dealers who advertise one model at a low price just to get you in the door but the advertised car doesn't even exist? Many car dealers engage in these and other "sharp" business practices which are not illegal, but many consider unethical. This is why many states have enacted consumer protection laws -- to protect buyers from scum who use these tactics.

 

[02LSE96LSC91SE84TC]

First question: What do you sell?
Second question: Do you make money selling that product/service?
Third question: Why do you work?

Also, how do you know what your car is worth? Your car is only worth what someone is willing to pay for it.........not what you think it should be.

Answer #1: I sell Sunroom additions and related products for a Nationwide Co.
Answer #2: Of course I do.
Answer #3: To make a living.

So thats what they are doing to....right???...making a living. Just about everytime a stop and look at a car the guys new and easy to predict. Can't be that great a work.

Do you sell cars?

 

[DLS8K]

Answer #1: I sell Sunroom additions and related products for a Nationwide Co.
Answer #2: Of course I do.
Answer #3: To make a living.

So thats what they are doing to....right???...making a living. Just about everytime a stop and look at a car the guys new and easy to predict. Can't be that great a work.

Do you sell cars?

I used to sell cars. I don't sell cars anymore because I didn't like what management wanted a salesperson to do. Selling cars is one of the hardest (in my opinion) ways to make a living. The expression goes, "if you can sell cars, you can sell anything." I am now a service advisor.

The truth is a car salesperson does not make that much money. The nationwide average is 8 cars/month/salesperson. If I would have sold 8 cars/month, I would be making 1600/month before taxes, insurance, etc. When you factor into the amount of hours a typical car salesperson works (usually around 60 hours/week), a person is not making that much money.

Also, the reason car salespersons are easy to predict is because they are told what to do and how to do it. In fact, there is actually a step-by-step guide many of them are expected to follow. It goes something like this....

1-Meet and greet
2-Establish rapport
3-Fact find about customers wants/needs/budget
4-choose the car and test drive
5-begin prelim. negotiations at the desk
6-walk to the manager with an offer/counter offer from the customer
7-negotiate until figures are agreeable
8-The customer doesn't walk until the manager talks to them to try to seal the deal
9-etc, etc, etc

Again, the reason they are predictable is because they are told what to do and how to do it. They teach word-tracks to handle customer objections because those word-tracks are shown to work more often than not. At the end of the day, the only thing a salesperson did was to be the intermediary between the manager and the customer.

When I sold cars, I did EXACTLY what management told be to do and I was extremely successful. When they told me that I was expected to only spend 1.5 hours with a customer, that's what I did and I sold cars. When I was told to say this or that, that's what I did and I sold cars. And that is why I got out of the business......because I didn't agree with what I was having to do. Don't blame the salesperson.....blame the system.

 

[Celly]

How long until the LS loses it's class and you see some highschool kid with a big fast and the furious wing on the back, it's coming. I am going to enjoy the classy feeling I get when I drive my LS.......for now!

 

[MangoMan]

DLS8K, I agree with you. Working at CarMax is a little bit diffrerent, but they have a process they follow, just like any dealership. And it gets tiring. Truth of the matter is, Im not one of the greatest salesment there, problay because I dot enjoy my job like I used to.

I'm problay going to be changing carrers withing the next few months,too.

 

[Fla02LS]

All this just makes me appreciate the place i buy my cars. Its still a business and needs to make money, but there are none of the games that ya'll have depicted.

 

[postalUT]

I had a buddy that worked at CarMax and if you look in the employee manual it actually says that their business model is based off of "untrained or first-time buyers" and when they list their target customers, it reads "1. Single women 2. English as a second language citzens 3. Economy buyers 4. Zero-credit customers" CarMax overcharges interest rates and undervalues cars. They make their money by ripping people off and laughing all the way to the bank. Take my advice and never deal with this dishonest company.

 

[MangoMan]

CarMax dosent have an enployee manual.

 

[macboy]

Let me tell you...what a JOKE. It took about 45 minutes but...they came back with a whopping $9500 for our 02 LSE w/70k on it. That made the $12.5k that the local dealers have offered seem like a stellar offer. Oh...and...CarMax did not even recognize the LSE package.

Could have been worse. When I went in to buy a brand new '06 LS Ultimate recently, they offered me $11500 CDN (~$10200 US) for my 02 with less than 44000 miles (72000 km). It is even still under warranty. The sticker on the new one was five times what they were offering me on my less than 4 year old LS, at around $57K ($43K after discounts). Needless to say, I did not trade it in. Of course I also have not had any luck selling it privately for the past 6 weeks either. The resale market is unimaginably poor for the LS. This is great if you are interested in buying a used one, and bad when it comes time to sell/trade.

 

[ToddG]

How long until the LS loses it's class and you see some highschool kid with a big fast and the furious wing on the back, it's coming. I am going to enjoy the classy feeling I get when I drive my LS.......for now!

Coming? Its already here! Look at some of the "pimp my ride" mods done to the cars on this board (you know who you are! )

 

[bill5]

We bought my wife's Accord at Carmax several years ago. I'd done a lot of research on price, value, etc. and considered it a fair deal. The transaction was seamless. We didn't finance it and I suspect, like with all dealers, that's where they make the most money. Anytime one complicates a purchase with a trade-in or financing, they're opening themselves up to additional costs, but I understand that a lot of folks don't want have the cash or don't want the hassle of selling their present vehicle themselves. There are inherient liabilities in not doing so. Gigging buyers in the financing department isn't exclusive to auto dealerships; for example, it's the primary profit center for furniture stores like RoomsToGo, etc.

 

[daves2000ls]

Holy crap...I go away for 24 hours and the thread exploded...

Anyway...I have come to the realization that our LSE isn't worth jack

so uh, since it aint worth jack anyway, do you wanna trade it straight up for my 00 v6?

 

[BanginLS]

I'm not going to sit here and read what everyone has written before me.. but based on the title of this topic i will say this.. i was offered 7k for my LS.. 2002 with 57,000 miles.. I think thats pretty low...