what is a "typical" percent markup on CPO cars?
Thread Starter
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Joined: Dec 2009
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E320 1994
what is a "typical" percent markup on CPO cars?
OK, I've set myself up by using the word "typical". There is no "typical" mark-up because every case is a little different of course. So let me rephrase: What percent below the CPO asking price can I safely open with as an offer without being looked upon as not serious, or not prepared?
The particular outcome, i.e. the answer to my question minus the word "typical", will depend on the position the dealer finds himself in.
But since there is in general no way for me to know how anxious he is to sell, I'd like to start low and work my way up. I'll find out what he is willing to do soon enough.
Is there for example an accessible database somewhere showing what these cars are actually seeling for, other than the Kelley, NADA, KBB books or are they good enough? How do I use them to figure out the answer to my question for a particular car?
All the cars I am looking at are 2007 E350s.
The particular outcome, i.e. the answer to my question minus the word "typical", will depend on the position the dealer finds himself in.
But since there is in general no way for me to know how anxious he is to sell, I'd like to start low and work my way up. I'll find out what he is willing to do soon enough.
Is there for example an accessible database somewhere showing what these cars are actually seeling for, other than the Kelley, NADA, KBB books or are they good enough? How do I use them to figure out the answer to my question for a particular car?
All the cars I am looking at are 2007 E350s.
MBWorld Fanatic!
Joined: Nov 2001
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From: Philadelphia area
2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
If you can get hold of a dealer auction result sheet that is published after each weekly auction you will be able to determine what is being paid by dealers. Remember that to CPO a car costs the dealers money and a fee to MB which should be accounted for in your calculations.
Thread Starter
Newbie
Joined: Dec 2009
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E320 1994
One angle that has occurred to me would be to compare the spread between the "good" (or should it be "excellent"?) trade-in price from Kelley/NADA/KBB to the CPO asking price and figure a decent profit in there to decide where to start the bid.
Does this sound like the way to go?
(I don't have access to auction data.)
Does this sound like the way to go?
(I don't have access to auction data.)
MBWorld Fanatic!
Joined: Nov 2001
Posts: 4,260
Likes: 6
From: Philadelphia area
2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
One angle that has occurred to me would be to compare the spread between the "good" (or should it be "excellent"?) trade-in price from Kelley/NADA/KBB to the CPO asking price and figure a decent profit in there to decide where to start the bid.
Does this sound like the way to go?
(I don't have access to auction data.)
Does this sound like the way to go?
(I don't have access to auction data.)
Thread Starter
Newbie
Joined: Dec 2009
Posts: 4
Likes: 0
E320 1994
So for example, using the NADA site, a 2007 E350 4matic sedan with 32000 miles in good trade-in condition would cost the dealer roughly $27,700 to which he will add a $3500 profit to give a selling price (actual) of $31,200, but not counting costs of CPO, let's say $1500, result $32,700.
A more extreme example: same car, mileage only 7000, and excellent trade-in condition (rather than good) costs dealer $34,650, add $3500, gives selling price = $38,150.
Costs of CPO probably negligible in this case.
Am I on the right track here?
A more extreme example: same car, mileage only 7000, and excellent trade-in condition (rather than good) costs dealer $34,650, add $3500, gives selling price = $38,150.
Costs of CPO probably negligible in this case.
Am I on the right track here?
Thread Starter
Newbie
Joined: Dec 2009
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E320 1994
I was composing that last comment before I saw yours - are you saying that dealers' asking price is very close to the actual selling price?
I thought there was substantial room in many cases, no? If close, how close ?
I thought there was substantial room in many cases, no? If close, how close ?
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MBWorld Fanatic!
Joined: Nov 2001
Posts: 4,260
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From: Philadelphia area
2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
I do not believe that you can purchased a used MB that is CPOed from an MB dealer for less than maybe 2 to 3% off of the asking price, if that. Keep in mind also that the CPO costs them more thasn 1500 bucks which is not insignificant. This is usually added on to what they would get if it was sold not CPOed, it is not deducted from the gross profit that they expected.
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2003 E500 Benz & 2015 BMW M235ix
OK, I've set myself up by using the word "typical". There is no "typical" mark-up because every case is a little different of course. So let me rephrase: What percent below the CPO asking price can I safely open with as an offer without being looked upon as not serious, or not prepared?
The particular outcome, i.e. the answer to my question minus the word "typical", will depend on the position the dealer finds himself in.
But since there is in general no way for me to know how anxious he is to sell, I'd like to start low and work my way up. I'll find out what he is willing to do soon enough.
Is there for example an accessible database somewhere showing what these cars are actually seeling for, other than the Kelley, NADA, KBB books or are they good enough? How do I use them to figure out the answer to my question for a particular car?
All the cars I am looking at are 2007 E350s.
The particular outcome, i.e. the answer to my question minus the word "typical", will depend on the position the dealer finds himself in.
But since there is in general no way for me to know how anxious he is to sell, I'd like to start low and work my way up. I'll find out what he is willing to do soon enough.
Is there for example an accessible database somewhere showing what these cars are actually seeling for, other than the Kelley, NADA, KBB books or are they good enough? How do I use them to figure out the answer to my question for a particular car?
All the cars I am looking at are 2007 E350s.
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Posts: 3,085
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From: Los Angeles
2009 SL550 Roadster Diamond White, 2008 CLK550 Coupe Obsidian Black
The CPO warranty paid for itself in my case when my tranny became contaminated due to glycol. So, I was really glad I bought a CPO car.
