Dealership Pricing Question: Does This Used Car Deal Make Sense?
So I randomly ended up at a dealership with my fiancée and her parents because they were shopping for a new car. They ended up buying one, and while we were there I casually asked the salesperson about my current vehicle. I wasn’t actively looking for a new car — more just curious whether getting into something newer would even be possible.
The salesperson told me he’d look into options. A few days later he called and said they had a 2026 model available with only 1,200 miles on it. It’s the base trim. I assumed it had been a courtesy/demo vehicle, but he told me it was originally leased by an elderly person who unfortunately passed away, and the family returned it to the dealership and they bought it back. They were selling the vehicle now as a used vehicle.
A few days later they fixed a small ding and a cracked taillight, and I went in to test drive it and talk numbers.
At this point, I’ll fully admit I should’ve done more research beforehand.
Side rant this annoyed me slightly: they offered me $18,500 for my trade-in while I owe $18,600. I know it’s only $100, but seriously… you couldn’t just cover the extra hundred bucks? I’m sure there are dealership rules about appraisal limits, but it still rubbed me the wrong way.
Then we got to financing. The monthly payment was higher than I expected.
Here’s the part that really confused me.
They priced the vehicle at $29,995. Initially that sounded decent because brand-new versions of the same car on the lot were around $32k+.
After I got home, I did more digging and found the original window sticker online (it was actually on the dealership’s website the whole time). The original MSRP was $32,390, BUT that included a $1,795 destination charge.
So the actual MSRP of the vehicle itself was really $30,595.
This is where I want clarification from people who know more about car buying than I do:
Since this car is technically used now, does the destination charge even matter anymore? My understanding is that destination fees are tied to new vehicles being shipped to dealerships. If that’s true, then they only discounted the actual vehicle by about $600 despite it being:
- Used
- 5 months old
- Already driven 1,200 miles
That doesn’t seem like much of a discount to me. Especially considering through some research I found cars typically loose 10% of their value the moment they drive off a lot and I heard people say this before as a general rule of thumb. Curious thought from people is this accurate?
Once I got the numbers I told him I’d sleep on it, so the next day I texted the salesperson and basically told him the payment was higher than I wanted, so I’d probably pass. Then after finding the original MSRP, I told him that based on my research — including the general idea that cars lose around 10% of their value once driven off the lot — I would buy the vehicle for $27,500 not $29,995 and explained that based on it being used, the original MSRP not including destination charge, and the 10% reduction in price this seemed like a fair number to me.
I haven’t heard back yet, and honestly I assume they’ll say they can’t go that low, which is fine. They may or may not negotiate with me a further and I am fine either way if they do or don’t. I already have a car, so this wasn’t something I needed to do. If the deal worked out, great. If not, no big deal.
What I’m really trying to understand is:
- Am I wrong for comparing the price WITHOUT the destination charge?
- Does a $600 discount off the “actual” MSRP for a used car with these specs seem unreasonable?
- Is this actually a decent deal and I’m misunderstanding the market?
- Or does this sound like a dealership trying to squeeze as much profit as possible out of a low-mileage used vehicle?
Also, the salesperson kept saying they had other buyers waiting on the car. Maybe true, maybe sales pressure — I honestly don’t know. If they do great and good for them they can end up selling this vehicle to them.
Either way, I’m most likely not getting this car because this doesn’t really feel like a great deal to me, but I’d appreciate advice from people who understand car pricing better so I can negotiate smarter next time.