how much discount from a dealer is average on a used car?

Asked by Jan 11, 2015 at 09:53 PM about the 2008 Lexus LS 460 Base

Question type: Shopping & Pricing

1 Answer

40

Hi Gene, This is a million dollar question. My experience in shopping for used cars tells me that tagging a discount percentage actually gives me the false impression that I am getting a pretty good deal. We need to understand the dealers especially used car dealers make more money by selling used cars than new cars. That tells us that there is a much bigger profit margin in the used car business, unlike that of new cars. To buy the car you are eyeing at, one needs to know how long the car has been left in the lot unsold. Then add the cost of financing the dealer has to pay to the bank to keep the car in the lot, add about $500 to $1,000 on top as their profit. That would be your starting point to bargain. This has been my formula of success. Other factor you have to consider are: rarity of model, colour, options, fair wear and tear, paint job, etc. Some dealers would sell auctioned stocks that may not come with service records. So the upper margin and lower margin for bargaining varies. As you can see the basic percentage discount is very deceiving when you want to analyse the art of purchasing used cars. There are also websites such as Cargurus, Edmunds and such like autos advocate resources would give you a ball park retail value. Again, they can sometimes differ in their own evaluations as well. Basically, you need to do your homework, know your prospective car and its original price when new, its demand and service history and mileage travelled. A common annual depreciation rate for import maker cars ranges from 18% to 22% depending on name brands.

1 of 1 people found this helpful.
Best Answer Mark helpful

Your Answer

Get More Money for Your Car
Be seen by 20 million shoppers. Create Your Free Listing

Lexus LS 460 Experts

  • #1
    HenryProctor56
    Reputation
    140
  • #2
    jmcraney
    Reputation
    80
  • #3
    amani52
    Reputation
    60
View All

Related Models For Sale

Used Lexus GS 350
137 Great Deals out of 3,353 listings starting at $3,950
Used Mercedes-Benz S-Class
182 Great Deals out of 5,852 listings starting at $2,000
Used Lexus ES 350
385 Great Deals out of 11,746 listings starting at $4,000
Used BMW 7 Series
150 Great Deals out of 5,828 listings starting at $2,999
Used Lexus RX 350
420 Great Deals out of 19,735 listings starting at $5,990
Used Audi A8
74 Great Deals out of 2,115 listings starting at $2,450
Used Mercedes-Benz E-Class
494 Great Deals out of 19,987 listings starting at $1,200
Used Lexus LX 570
20 Great Deals out of 1,382 listings starting at $22,900
Used BMW 5 Series
476 Great Deals out of 16,446 listings starting at $1,995
Used Lexus LS 600h L
22 listings starting at $18,500
Used Toyota Avalon
220 Great Deals out of 17,066 listings starting at $1,599
Used Lexus LX 470
8 Great Deals out of 287 listings starting at $5,500
Used Lexus GS 430
5 Great Deals out of 105 listings starting at $3,295

Used Cars For Sale

2017 Lexus LS 460 For Sale
1,118 listings starting at $72,356
2016 Lexus LS 460 For Sale
4 Great Deals out of 44 listings starting at $52,995
2015 Lexus LS 460 For Sale
11 Great Deals out of 155 listings starting at $39,977
2014 Lexus LS 460 For Sale
14 Great Deals out of 222 listings starting at $31,500
2013 Lexus LS 460 For Sale
6 Great Deals out of 127 listings starting at $27,990

Content submitted by Users is not endorsed by CarGurus, does not express the opinions of CarGurus, and should not be considered reviewed, screened, or approved by CarGurus. Please refer to CarGurus Terms of Use.