When you’re shopping for a new vehicle, you’re often expected to pay more than your purchase price.
But if you’re a big fan of big, expensive sports cars, you might be surprised to learn that your friends aren’t as likely to be buying them as you think.
“It’s kind of the opposite, it’s like, ‘Oh, my friends are not going to be getting a new BMW,'” said J.D. Gurney, a financial planner in Orlando, Fla.
“But I think they’re not buying it for the price they think they are.”
What’s the difference?
In the case of a new model, the buyer’s premium will be split between the sticker price and the seller’s suggested retail price, which is typically about $25,000 to $35,000.
In the event of a sale, the difference will be less.
Gurney says it’s worth noting that he has seen a few examples where people who had been buying a new Toyota Camry for a few years had their prices dramatically raised, even to nearly $45,000, because they realized their friends weren’t buying the car for its sticker price.
It may be worth noting as well that this is how most sports cars are sold.
In most cases, a new driver gets the vehicle in exchange for cash, and that cash goes to a new owner who can then use the money to pay for the car.
It’s a transaction where the price will generally be the same whether the new owner is a new buyer or a former buyer.
In the case that you’re not a new, or former, buyer, the car is likely to have an original sticker price, usually $20,000 or more.
In other words, the vehicle is likely not going for more than a few thousand dollars, even though it’s likely to cost you more.
“The sticker price is really what’s really going to keep you from buying it,” said Gurnay.
“If the car’s going to have a sticker price of $30,000 and you’re still going to get $15,000 cash, you can probably do it.”
If you’re thinking about buying a car with a sticker value higher than $30 and are thinking about going with a buyer who’s buying a similar car with sticker values higher than that, you should probably check with the seller.
The seller will probably know what they’re talking about.
If the seller tells you that you should go with a seller who has sticker values that are lower than that value, then you should definitely check with them.
A recent example:A friend of mine who is a dealer for a couple of brands of cars recently drove a new Nissan Maxima for his wife, who works in retail and had a recent accident.
“We decided that we would buy the Maxima with a higher sticker price than what we were expecting,” said the friend.
“That meant the seller would have to take out a $10,000 loan from his bank to pay off the $20 million he paid on the Max, plus another $10 to cover the cost of the warranty.”
The buyer of the Max was told by the seller that the sticker value was about $30 million, and he was then told that he’d have to pay another $15 million.
The dealership declined to comment for this story, but Gurnee says it makes sense to think about the sticker amount in your financial situation.
“You need to be thinking about it in terms of the amount of money that you can pay down,” he said.
“There’s a lot of things that you’ll pay off with the car, but the sticker can be the difference in how much you can afford to pay.”