A former Kia dealership manager says he’s learned the hard way that buying an used car for $1,000 isn’t worth it.
And now he’s getting into the car business, too.
Jim Pincus, who was head of marketing for Kia dealerships in California, Arizona and New Mexico, told Newsweek the best way to get better deals is to go to your local dealership and ask for advice.
He said the dealership will help you pick the right car for you, but the most important thing is to be honest with them about what they’re charging you.
Pincus said he recently received a call from a dealership manager who told him the dealership had recently added a new car to its fleet, and he could make up to $1.2 million if he could get it on the books as a pre-owned vehicle.
But that would cost $1 million more than if he were to buy it new, Pincs said.
The dealer is not in the business of selling pre-Owned cars, which are sold for $2,000 or less.
That means the dealership won’t sell you the car unless you pay the $1-2 million asking price.
Pinces said he was given an estimate of $1 to $2 million to spend.
When asked if he was being told the dealership was charging him too much, Pinchus said, “I’ve never heard that before.”
Pincs was a sales associate for Kias dealer in California and Arizona when he retired in 2001.
His first car was a 1993 Mazda MX-5, which he bought for $500 in 2000.
The car sat in storage for 10 years before it was sold.
In 2004, Pinches son purchased a 2005 Mazda3 for $3,500 and was able to buy a used car.
The new car was in excellent shape, and Pincss said the car was worth much more than what the dealership offered.
In 2006, Pincess bought a used Hyundai Genesis for $6,000 and it sat for two years before being sold.
The next year, PINCs son purchased an old 2003 Mazda3, but that car was only worth $2.3 million.
Pinchus and his wife had hoped to buy their first car, but were not prepared for the $2-3 million asking premium they paid for the car, he said.
“The price was a bit high,” Pincson said.
“I was hoping for $5,000.
But when you look at what we had to pay to get this car, we had no choice but to give up on that dream.”
Kia Motors Inc., which owns the Kia brand, is not the only auto manufacturer charging exorbitant prices for used cars.
Fiat Chrysler Automobiles Inc. said in a recent filing with the Securities and Exchange Commission that it was “actively pursuing additional sales of vehicles and is evaluating all options for acquiring additional vehicles.”
The price for a used Kia is higher than many used car dealerships are charging.
The typical used car price in California is $3 million to $5 million.
In Arizona, the average price is $2 to $3.5 million, according to Edmunds.
The average price for an used Kiosk is about $5.5 to $10 million.
Pinchs said Kia Motors has offered discounts of as much as 50 percent on used cars over the years, but he is unsure if those offers have been made to other automakers.
The dealership where Pincsson works has sold about 1,000 pre-sold Kia vehicles, and the salespeople said they are not the ones who should be charging the higher price.
But Pinchson said he hopes Kia will eventually increase its prices.
“If they’re going to do that, I want them to make sure that we’re getting the value,” he said, adding that the company has a “huge” customer base that could help the company with the price increase.
Pincess said he will continue to buy used cars and said he has no plans to retire from the business.