Manheim and auctions in general
05-31-2010, 09:07 AM
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2005 c55
Manheim and auctions in general
I have gone through these posts and looked at Manheim prices for e55's and m5's and cant see how anyone is making money at this? The prices just don't seem like they are that much lower than retail and if people are flipping cars they are not making much and do put out $28K or $30K to make a thousand at best just does not seem realistic?
Is anyone making money at this? I have been told that so many people have auction licenses now and are buying up everything which is driving the prices way up which was not the case many years ago. Is this the case?
Is anyone making money at this? I have been told that so many people have auction licenses now and are buying up everything which is driving the prices way up which was not the case many years ago. Is this the case?
05-31-2010, 01:31 PM
#2
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Rich,
You would not believe me if I told you that used car dealers make $300-$500 profit on these cars. Sometimes they run across a person who has 0 negotiating experience and they make a little bit more. The secret for the dealers is quantity. I have access to Manheim and Highline and I too could not believe that these cars were so expensive at these auctions. Also one important thing to note is that these cars are sometimes NOT road friendly. I've seen everything from blown out tires, cracked windshields, dented fenders, torn interiors and all kinds of other weird stuff. Dealers have to invest some money into these cars to make them user friendly. True, they pay wholesale for parts/detail/labor but still time and $ out of their pocket. You should really consider this when looking at the auctions.
I have found that you could get a much better deal at a used car lot. These dealers have brought their cars up to road safety standards (new breaks/working blinkers, lights/tires) and if they dont sell it with in a month or two they'll start lowering prices.
You could get a MUCH better deal on a car at a dealers lot who is ready to take a haircut to clear inventory then you could at the auction. Remember, dealers will make some coin on the car they sell you, they'll get a "kickback" if you finance through them, and they'll make some on the extended warranty they sell you. You add all that up and multiply by how many cars they sell a month and you get a nice profitable business.
You would not believe me if I told you that used car dealers make $300-$500 profit on these cars. Sometimes they run across a person who has 0 negotiating experience and they make a little bit more. The secret for the dealers is quantity. I have access to Manheim and Highline and I too could not believe that these cars were so expensive at these auctions. Also one important thing to note is that these cars are sometimes NOT road friendly. I've seen everything from blown out tires, cracked windshields, dented fenders, torn interiors and all kinds of other weird stuff. Dealers have to invest some money into these cars to make them user friendly. True, they pay wholesale for parts/detail/labor but still time and $ out of their pocket. You should really consider this when looking at the auctions.
I have found that you could get a much better deal at a used car lot. These dealers have brought their cars up to road safety standards (new breaks/working blinkers, lights/tires) and if they dont sell it with in a month or two they'll start lowering prices.
You could get a MUCH better deal on a car at a dealers lot who is ready to take a haircut to clear inventory then you could at the auction. Remember, dealers will make some coin on the car they sell you, they'll get a "kickback" if you finance through them, and they'll make some on the extended warranty they sell you. You add all that up and multiply by how many cars they sell a month and you get a nice profitable business.
05-31-2010, 01:55 PM
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'12 E63 Estate, Gwagen, BMW, Ferrari,Porsche
I agree... I have a friend/auto broker that was helping me search for my E55, but his comments were the same. Low inventory and people were bidding and driving prices upwards making it less attractive to buy. Also, the used car business has increased as people are becoming more price conscious. So your best bet will be either get a car from used car lot or a private party. I bought mine from a private party - more negotiating power (if they are not upside down in the loan), service records, history, etc... Also, warranties are also key.
05-31-2010, 02:31 PM
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2005 c55
I do prefer working with private sellers as they are usually willing to get out of the car for a bit more than trade in and are happy with that. I do agree with auctions in that you never know what you get and you may have to put in money to bring it up to par. Also I have found many fly by night dealerships will buy there and put nothing into them and still want good money for a car that needs tires, brakes, or has a fair amount of scratches and such.
05-31-2010, 06:53 PM
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'19 G63 Ed 1,'18 M5, '16 G63,'12 458 , '11 E63, Brabus SL55-K8, '10 S63, '94 E500 "Wolf", '91 560SEC
Rich,
You would not believe me if I told you that used car dealers make $300-$500 profit on these cars. Sometimes they run across a person who has 0 negotiating experience and they make a little bit more. The secret for the dealers is quantity. I have access to Manheim and Highline and I too could not believe that these cars were so expensive at these auctions. Also one important thing to note is that these cars are sometimes NOT road friendly. I've seen everything from blown out tires, cracked windshields, dented fenders, torn interiors and all kinds of other weird stuff. Dealers have to invest some money into these cars to make them user friendly. True, they pay wholesale for parts/detail/labor but still time and $ out of their pocket. You should really consider this when looking at the auctions.
I have found that you could get a much better deal at a used car lot. These dealers have brought their cars up to road safety standards (new breaks/working blinkers, lights/tires) and if they dont sell it with in a month or two they'll start lowering prices.
You could get a MUCH better deal on a car at a dealers lot who is ready to take a haircut to clear inventory then you could at the auction. Remember, dealers will make some coin on the car they sell you, they'll get a "kickback" if you finance through them, and they'll make some on the extended warranty they sell you. You add all that up and multiply by how many cars they sell a month and you get a nice profitable business.
You would not believe me if I told you that used car dealers make $300-$500 profit on these cars. Sometimes they run across a person who has 0 negotiating experience and they make a little bit more. The secret for the dealers is quantity. I have access to Manheim and Highline and I too could not believe that these cars were so expensive at these auctions. Also one important thing to note is that these cars are sometimes NOT road friendly. I've seen everything from blown out tires, cracked windshields, dented fenders, torn interiors and all kinds of other weird stuff. Dealers have to invest some money into these cars to make them user friendly. True, they pay wholesale for parts/detail/labor but still time and $ out of their pocket. You should really consider this when looking at the auctions.
I have found that you could get a much better deal at a used car lot. These dealers have brought their cars up to road safety standards (new breaks/working blinkers, lights/tires) and if they dont sell it with in a month or two they'll start lowering prices.
You could get a MUCH better deal on a car at a dealers lot who is ready to take a haircut to clear inventory then you could at the auction. Remember, dealers will make some coin on the car they sell you, they'll get a "kickback" if you finance through them, and they'll make some on the extended warranty they sell you. You add all that up and multiply by how many cars they sell a month and you get a nice profitable business.
06-01-2010, 12:18 AM
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E63 P30, CL500 Sport
I'm going to have to disagree with some of the stuff said here. While it is true that most auction cars are beat-up, some are still in very good shape and one can strike unbelievable deals. For example, back in January of 2009, a friend of mine and I bought an 06 SL55 with 27k miles for $44.7k from Manheim and sold it for $50.2k just two months later. Moreover, I've seen E55s and E63s sell in the auction for thousands less and some of them were in very good condition. When you go to the auction, you can examine the car before hand and usually you can tell whether it is worth it bid on or not.
On another note, there are some "dealer-only" auctions for BMW and Mercedes, which other dealers can't bid on. The cars that go through this type of auctions are usually in great condition and dealers do make some money on them.
On another note, there are some "dealer-only" auctions for BMW and Mercedes, which other dealers can't bid on. The cars that go through this type of auctions are usually in great condition and dealers do make some money on them.
06-01-2010, 12:23 AM
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I'm going to have to disagree with some of the stuff said here. While it is true that most auction cars are beat-up, some are still in very good shape and one can strike unbelievable deals. For example, back in January of 2009, a friend of mine and I bought an 06 SL55 with 27k miles for $44.7k from Manheim and sold it for $50.2k just two months later. Moreover, I've seen E55s and E63s sell in the auction for thousands less and some of them were in very good condition. When you go to the auction, you can examine the car before hand and usually you can tell whether it is worth it bid on or not.
On another note, there are some "dealer-only" auctions for BMW and Mercedes, which other dealers can't bid on. The cars that go through this type of auctions are usually in great condition and dealers do make some money on them.
On another note, there are some "dealer-only" auctions for BMW and Mercedes, which other dealers can't bid on. The cars that go through this type of auctions are usually in great condition and dealers do make some money on them.
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06-01-2010, 06:32 AM
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I'm about to pick-up a 2006 E55 (now that I've got a baby coming in a few weeks --would prefer an SL55, but it's not practical, but the E55 is a beast).
Anyhow, looking at the local for sale ads (in Los Angeles) -- prices seem to be all over the place.
I've purchased a lot of car over the years (18 since I started driving, in as many year). So negotiating is not an issue. I just need an idea of what the actual value of these cars is, so I'm not shooting the dark.
Can anyone give me a range for say a 2006 E55 with ~40K miles on it (I've found a few that meet that spec). Some are asking $32K, other $39K -- none are CPO's.
So any help in the real market value pricing would be appreciated, along with anything to look out for (from a prior service stand point, I've wrenched a few cars over the years, so I can usually get an idea from driving and listening to the car and looking for wear in areas of interest).
thanks in advance.
-damon
Anyhow, looking at the local for sale ads (in Los Angeles) -- prices seem to be all over the place.
I've purchased a lot of car over the years (18 since I started driving, in as many year). So negotiating is not an issue. I just need an idea of what the actual value of these cars is, so I'm not shooting the dark.
Can anyone give me a range for say a 2006 E55 with ~40K miles on it (I've found a few that meet that spec). Some are asking $32K, other $39K -- none are CPO's.
So any help in the real market value pricing would be appreciated, along with anything to look out for (from a prior service stand point, I've wrenched a few cars over the years, so I can usually get an idea from driving and listening to the car and looking for wear in areas of interest).
thanks in advance.
-damon
06-01-2010, 09:09 AM
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Eurocharged Performance ML63 and TT lambo
I'm about to pick-up a 2006 E55 (now that I've got a baby coming in a few weeks --would prefer an SL55, but it's not practical, but the E55 is a beast).
Anyhow, looking at the local for sale ads (in Los Angeles) -- prices seem to be all over the place.
I've purchased a lot of car over the years (18 since I started driving, in as many year). So negotiating is not an issue. I just need an idea of what the actual value of these cars is, so I'm not shooting the dark.
Can anyone give me a range for say a 2006 E55 with ~40K miles on it (I've found a few that meet that spec). Some are asking $32K, other $39K -- none are CPO's.
So any help in the real market value pricing would be appreciated, along with anything to look out for (from a prior service stand point, I've wrenched a few cars over the years, so I can usually get an idea from driving and listening to the car and looking for wear in areas of interest).
thanks in advance.
-damon
Anyhow, looking at the local for sale ads (in Los Angeles) -- prices seem to be all over the place.
I've purchased a lot of car over the years (18 since I started driving, in as many year). So negotiating is not an issue. I just need an idea of what the actual value of these cars is, so I'm not shooting the dark.
Can anyone give me a range for say a 2006 E55 with ~40K miles on it (I've found a few that meet that spec). Some are asking $32K, other $39K -- none are CPO's.
So any help in the real market value pricing would be appreciated, along with anything to look out for (from a prior service stand point, I've wrenched a few cars over the years, so I can usually get an idea from driving and listening to the car and looking for wear in areas of interest).
thanks in advance.
-damon
06-01-2010, 11:11 AM
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E63 AMG
+1
Not sure why everyone gets the idea that an "auction car" is in a different category. It's either a trade in at a dealership or it's a car that has sat on the lot for too long and needs to be liquidated. Quality is all over the board but my experience at a dealer auction is very good. As with any used vehicle you purchase there will be something you have to fix. Do your research to minimize any huge mistakes.
Not sure why everyone gets the idea that an "auction car" is in a different category. It's either a trade in at a dealership or it's a car that has sat on the lot for too long and needs to be liquidated. Quality is all over the board but my experience at a dealer auction is very good. As with any used vehicle you purchase there will be something you have to fix. Do your research to minimize any huge mistakes.
06-01-2010, 11:21 AM
#12
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I'm going to have to disagree with some of the stuff said here. While it is true that most auction cars are beat-up, some are still in very good shape and one can strike unbelievable deals. For example, back in January of 2009, a friend of mine and I bought an 06 SL55 with 27k miles for $44.7k from Manheim and sold it for $50.2k just two months later. Moreover, I've seen E55s and E63s sell in the auction for thousands less and some of them were in very good condition. When you go to the auction, you can examine the car before hand and usually you can tell whether it is worth it bid on or not.
On another note, there are some "dealer-only" auctions for BMW and Mercedes, which other dealers can't bid on. The cars that go through this type of auctions are usually in great condition and dealers do make some money on them.
On another note, there are some "dealer-only" auctions for BMW and Mercedes, which other dealers can't bid on. The cars that go through this type of auctions are usually in great condition and dealers do make some money on them.
+1
Not sure why everyone gets the idea that an "auction car" is in a different category. It's either a trade in at a dealership or it's a car that has sat on the lot for too long and needs to be liquidated. Quality is all over the board but my experience at a dealer auction is very good. As with any used vehicle you purchase there will be something you have to fix. Do your research to minimize any huge mistakes.
Not sure why everyone gets the idea that an "auction car" is in a different category. It's either a trade in at a dealership or it's a car that has sat on the lot for too long and needs to be liquidated. Quality is all over the board but my experience at a dealer auction is very good. As with any used vehicle you purchase there will be something you have to fix. Do your research to minimize any huge mistakes.
When I went to the Manheim auction with a dealer, I saw hundreds of cars that came from dealerships, for instance some had MB Financial stickers on the windshields, practically brand new. I saw some Bently's, Ferarri's, and plenty of others. Bigswin is right, plenty of cars are liquidated and sent to auctions everyday.
Do the research, check into things, and you can get some very good deals in excellent condition.
06-01-2010, 01:04 PM
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Just saying 
seems like once a month POOOFFF same topic..Good luck on your search.. Can't say much
but there are a few steps to take. In the end if you're happy with your purchase that's all that counts..
06-01-2010, 01:24 PM
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Exactly, you can get real burned if you do not know what you are doing. Like the guy here that bought a E63 and someone stripped the brakes prior to auction and put E320 brakes on there. Deffinetly not for rookies.
