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Plus the costs to prep and detail it, run a standard 160 point inspection, and the cost to market it and they're likely losing money on the transaction. The longer it remains in their inventory, the more it's going to cost them. And there's always the chance that if they can't move it in 90 days, they take an even bigger hit if they send it to auction.
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Is it bad that I hope that happens?
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He likely took their first offer. I spent 4 months getting offers and denying them, until I called and told them flat out if they don't increase by more than a couple hundred each time its not going to entice me. They asked me to elaborate on the car and then sent another offer. I took their final offer at $55k and figured they'd put it up for $57,500 or something. Guess not.
They offered a guy on here (at least I believe it was Vroom) 79k for his widebody Hellcat...they offered me 74k for a regular body loaded Redeye...
Their pricing is just bonkers
Their pricing is just bonkers
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Absolutely, its a great business model. They probably write off a lot of the out-sourced carrier costs and if they only make 1500-2500 per car, but do that across 100 cars a day they're definitely doing something right. A bit of digging brings up Vroom is a part of Texas auto direct. I used to use eBay A LOT before amazon became the powerhouse and I tell ya, that Texas auto direct vendor always had 100+ beautiful used cars for great deals and they would arrange shipping. They've been doing this for a decade at least so no wonder they have the bankroll to offer someone 90% value for their used car vs what they bought it for thousands of miles ago. If they have a monopoly on the high trim muscle cars then they essentially set the market as they see fit.
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And then they turn around and throw them up for 81k and 77k and that's pure profit to them, minus very few costs like cleaning.
I think they're doing a smart thing with all these cars too because 9/10 these are the owners babies, not a toy that gets driven hard and put away wet (most cases, I am def. an exception lol)
So they can bank on the fact that there won't be a lot of costs to get that car turned around and put on the site. I bet for every 20 cars they buy they probably have 1 that is so far gone that they just auction it off or put on ebay as a auction car under their Texas Auto direct handle.
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I hope so, so I can snag another used one in a year once I moved and am ready lol
22 GR Supra 3.0 Premium, 17 C7 Z06/Z07 (RIP), 19 392 Charger (SOLD)
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They make most of their money not on the sale of the car but financing because when you purchase from them they are their own bank and typically have higher rates even for those with good/great credit. They don't make much on the sales but more on interest from loans and the warranties they sell are pricey as well but people tend to buy the add ons and its mostly profit.
Just curious why would you care it’s not costing you anything?
You also have to remember they make money in financing since very few people will come in and pay cash.
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Because I still miss my car dearly, and if they have trouble selling it at current price, that would be a direct reflection of the used car market maybe subsiding its outrageous inflation.
I plan to make a move within the next few months at which point I will immediately be looking for another car, and since I've already owned a muscle car from each of the Big 3, I can accurately say the Hellcat was perfect for me so it will likely be another desired over the Shelby or ZL1.
End of the day I am not saying I hope they fall on their face, more so I hope the market regulates toward normalcy.
Correct, and to expand they offer to low credit and no credit buyers at insane rates, anywhere from 4% to 27% apr.
They basically bank on lazy, no credit or low credit buyers.
Their model is different than traditional dealerships.
I looked into selling my car with them and put in all my info on my charger last week. 2016 Charger Hellcat 19k miles sunroof, HK, clean title immaculate condition they offered me $46k. I was offended.
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I find that they have a generous amount of wiggle room. My first offer was $47,000 when my car sat at 35k miles.
Might wanna call them if you actually wanna sell..
No. Then you can buy your old car back at much lower price.
Have your old car back but with $10,000 in your pocket.
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