I’m considering buying a used car from a friend, but he wants a few hundred dollars over maximum bluebook.
Bluebook range = $10,500 to $11,600.
He wants $12K.
His outstanding loan balance is $11.8K. he wants to pay off the loan completely.
I was thinking of paying $11 to $11.5K.
I trust him and that the car is in good-to-excellent condition (pending inspection).
Am I getting ripped if I buy over max. bluebook, or should I just eat it because I know where the car has been, I trust the seller, and I saved myself from having to hunt down a new car I can trust?
I use edmunds.com far better & more fair pricing. kbb doesn’t seem to take into account
the economy. I can see why he wants more, his loan is so high. You can pay more, but
why not check on other cars for sale? Also, give the name of the car & the year.
The only way I would pay over the high-end is if the car is in above high-end condition: really low-miles, meticulously cared-for, NO body or interior damage. It should be the classic “little old lady who drove to church on Sundays”-type car. Unless you’re feeling generous, don’t do it.
Personally, I’d never buy a car from a friend. If it craps out a week later, you’re going to have a hard time not feeling like maybe, just maybe, they knew the transmission was about to go…
If you do buy it, though, pay blue book value. Not the highest blue book value, unless it truly is in perfect condition (which includes a thorough detailing of the interior). I’d guess this is probably about $11k. Blue book is a nice impartial judge of what a car is worth. The extra convenience of trusting the seller is offset for him by not having fifty idiots show up at his house to drive his car and then not buy it. You’re saving him more hassle than he’s saving you.
Also, his loan amount should have nothing to do with what price you pay. Cars depreciate. Some faster than others. What he paid (and what interest rate he got) don’t change the value of his car right now.
I say offer him 11.5. It’s ridiculous for him to try to get more because you’re a friend/he has a loan. He won’t get that much except from desperate people, so he’s willingly and knowingly taking advantage of you if he’s asking you for that much. Kind of sleezy, IMO.
The bad news is: I agree with the previous commeny about not buying from a friend. It’s a bad idea.
The good news is: this person is not your friend. Friends give friends a break, they don’t use them to pay off loans. If he hasn’t even kept up with scheduled maintenance, then don’t pay a premium for it.
Forget about frienship. Make a deal you’d be happy with from a stranger.
You might “pay (much) too much” for a car that is rare or for which you have some sort of emotional attachment, but Jetta’s are mass produced.
I’d shop a very little first just to see where your local market is on that vehicle. If you really like the car, paying a few hundred too much is no big deal as long as the vehicle is in top notch condition and passes a mechanical inspection-- $3.00 - $4.00 per month too much is not too much for something you really want that is high quality.
Mentioned was that the owner “wants” to pay off the loan completely. If he’s going to sell the car, he has no choice but to pay off the car completely in order to get the title unless the buyer is paying cash and willing to wait for the title=lunacy.
If your friend is unwilling to pay off his negative equity ($11,800 - selling price) and unable to get $11,800 or better, it’s academic: he’ll be driving the car until he reaches breakeven. Considering new cars are now selling with huge rebates and 0.0% financing, the value of used cars should continue to drop and his breakeven could extend into the fourth or fifth year of the loan depending on his APR.
Also add another vote for “do not buy an automobile from a friend” unless you are willing to lose that friend.
The $10.9 to $11.6 price range takes mileage into account already. The question is, for a car with this milage, how much within that range is good, and whether going above that range by a few hundred dollars is a rip off for me.
True, but my point is if you get a loan for the car for, say $9,300 plus, say $2,000 of your own money (down payment), the owner only has $11,300, not enough to pay off his loan and get the title which you need to pass along to your bank in a limited amount of time. Unless the owner is willing to eat the difference between what you are willing to pay, ($11,300) and his buyout ($11,800), it’s no deal.
Without offering him as much, I did ask if he was even willing to “break-even” on the loan at $11.8, but he didn’t answer. He’s bent on getting $$ above his loan balance for some reason.
We’re negotiating via email, and he’s using bogus arguments to get me to come up from $11.25. Brand new tires got me up to $11.45, but he hasn’t budged from $12.0. Since he wants to play dirty pool, I’m starting to play dirty pool back at him (creating subtle inferences making him out to be a jackass for his stubbornness).
“69000 miles seems a bit high for about 3 years of driving”
Yes, they are probably highway miles. Would have to see the records &
see if its under warrentee. Would a bank would loan you more
than the book value?
Please note my earlier comment. This person is not your friend. He is trying to manipulate whatever relationship you have to make you pay MORE than market price. I cannot conceive that any friend of mine would do so.