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How flexible is the term 'OBO'

Discussion in 'The Hokey Ass Message Board' started by thewaxhead, Jan 6, 2014.

  1. thewaxhead
    Joined: Apr 3, 2012
    Posts: 80

    thewaxhead
    Member

    Hi everyone

    Please excuse my ignorance (in advance):confused:

    When looking for cars or parts in US classifieds, I notice the term OBO used frequently. I assume OBO means Or Best Offer?

    In Australia when listing a car for sale, we use ONO 'Or Near Offer'.


    Now my question is about how flexible 'OBO' to you guys personally. If we are talking about a $10,000 car which states 'obo', how much would you Hambers actually offer?

    Obviously some cars have misleading photos and info about them so when you go to inspect it you instantly realise the advertised price is definitely not a good deal...

    Has anyone scored some bargains giving a good offer?

    Would you be offended if someone offered you half the asking price of a 10k car?

    Please give me any info you have, I am heading over for my 3rd trip to California this summer and plan on shipping a car home... I don't want to come home with black eye instead!

    Thanks
     
  2. ebfabman
    Joined: Mar 10, 2009
    Posts: 499

    ebfabman

    OBO is a way to start the negotiating process. Otherwise the price is firm.
     
  3. Depends on the item and the offer. Ive been given things I sold that since I dont have any money into, and if its something thats hard to sell, Ive taken a LOT less than I would on an item thats easier to sell.

    On the flip coin, if I get an insulting lowball offer, I am no longer willing to even negotiate with the fool.

    If you offered me half on a 10k car,,,, we would be done even talking.
     
  4. i always thought obo was for the sellers benefit. it allows him to take a higher offer if someone else wants it more.
    as far as offering lower. it an be done, nicely without insulting the seller. negotiate.
     

  5. squirrel
    Joined: Sep 23, 2004
    Posts: 55,942

    squirrel
    Member

    Offer what you think the car is worth to you. If the seller is insulted, that's his problem, since he's the one trying to unload a piece of crap for too much dough.

    You may or may not get the car for your offer. Each deal is different.
     
  6. I agree with my follow members,,if a car is advertised for 10 grand or best offer..In my opinion the seller is willing to take offers but it dosent mean he's going to take it.

    If you can back up what you offer be willing to do the deal at that point in time,,some guys bump the price up knowing they are going to take as much as 20% less,,some won't come down 5%.

    Another old American adage.....Money talks and BS walks!:D HRP
     
  7. young'n'poor
    Joined: Jan 26, 2006
    Posts: 1,281

    young'n'poor
    Member
    from Anoka. MN

    It is different to every seller really. Just offer what you think the car is worth. The wrist they can say is no.


    Posted using the Full Custom H.A.M.B. App!
     
  8. If I see OBO I offer less than I am willing to pay. Seller has marked it up to cover bids. He may take less than I am willing to pay. Someones got to win, someones got to lose. It's called the hokey-pokey.
     
  9. Rusty O'Toole
    Joined: Sep 17, 2006
    Posts: 9,657

    Rusty O'Toole
    Member

    It depends on a lot of things. I would say at least 10% to 25%. If the car has been on the market for months with no offers, and his wife is yelling at him to get it out of the garage, 50%. Unless he has lots of full price offers, in that case no discount at all.

    You have to play it by ear. It simply means he is willing to take less if he has to. How much less, depends on a lot of things.
     
  10. adam401
    Joined: Dec 27, 2007
    Posts: 2,856

    adam401
    Member

    I buy and sell a fair amount. Obo doesn't have any strict rules and may be even interpreted differently in different areas but for me, I'm never insulted by an offer, cash talks and I always expect to negotiate. I feel putting items for sale with a firm price is counter to the culture of buying selling used cars and parts cause we are conditioned to negotiate in these situations.

    On the buying end, I sometimes choose not to make an offer if I don't value the object anywhere near the asking price because I don't like to offend but I've probably missed some good deals that way. Double standard I guess but I operate in my comfort zone.
     
  11. fast30coupe
    Joined: Nov 15, 2009
    Posts: 1,018

    fast30coupe
    Member
    from Illinois

    I always see OBO meaning the person wants it gone. As far as negotiation goes I first see what it is and then how I feel about the seller. Then the art of negotiation comes in. It also depends on how my wallet is feeling too.
     
  12. The37Kid
    Joined: Apr 30, 2004
    Posts: 30,629

    The37Kid
    Member

    I think OBO is a term first used in the UK, I remember seeing it used for the first time in the late 1970's. Bob
     
  13. tfeverfred
    Joined: Nov 11, 2006
    Posts: 15,791

    tfeverfred
    Member Emeritus

    To me, OBO, means that the seller is willing to play the "high/low" game. IT'S ON!
     
  14. hoodprop
    Joined: Oct 26, 2010
    Posts: 329

    hoodprop
    Member

    Within 1000 of asking price

    Posted using the Full Custom H.A.M.B. App!
     
  15. rd4pin
    Joined: Feb 2, 2010
    Posts: 177

    rd4pin
    Member
    from louisiana

    To me OBO, means I offer less than the asking price, he then ask more than I offer.
    If can can meet in the middle where we each are good with it, then it's a done deal.
    If not, I go home, he keeps his stuff.
     
  16. Best part about these threads is it shows me how to offer (and who) prices to the guys saying 50% is acceptable :D
     
  17. Squablow
    Joined: Apr 26, 2005
    Posts: 17,390

    Squablow
    Member

    I don't think 20% less is an insult as an offer, but 50% could be. But there aren't any steadfast rules. I've seen ads that said $XXXX Firm OBO. No idea what that is supposed to mean.
     
  18. roughneck424
    Joined: Jan 10, 2009
    Posts: 1,084

    roughneck424
    Member

    It also all depends on where you are at.
    Like at a big swap meet lots of foreign buyers and a wheeler dealer trying to "flip" a car and has a big profit margin on it. Maybe 50% to high.??
    Craigslist list ad . Some guy wanting to sell something fast cuz the rents due but attached to his car. has it priced cheap to sell. Maybe offended to with a 25 % reduction. But like mentioned OBO starts the game so let the chips fall where they may.
    Every deal has its own deal...
     
  19. roughneck424
    Joined: Jan 10, 2009
    Posts: 1,084

    roughneck424
    Member

    I heard this just once before that a guy thought obo was for OR BETTER OFFER not OR BEST OFFER. In fact I started a thread on it. No one else had heard of the BETTER OFFER? This make 2 times now:)
     
  20. cb1
    Joined: May 31, 2007
    Posts: 412

    cb1
    Member
    from Wisconsin

    I think OBO is used by sellers to get more buyers looking at their car. People don't like a firm price. They like to dicker, thinking they are getting a deal. You have to get a deal.

    I learned my lesson a long time ago on this. Took a truck and put it on the highway for $100. I would take no less. It was there for three weeks.

    My uncle (wheeler dealer) came over and gave me $100 for it. The next day I drove by it and he had put $350 OBO (or best offer) on it. I laughed out loud, noway is he getting that.

    A week later he sold it for $250. Someone got a deal by talking him down $100.

    Learned my lesson. Everybody wants a deal...

    cb1
     
  21. ElSupremo
    Joined: Sep 19, 2007
    Posts: 33

    ElSupremo
    Member

    The way I approach it is I have the money, they want the money. I have the upper hand as long as I leave emotion out of it. Don't show desire.

    If it's a $10k asking price on a $7500 car, I might preface an offer with a statement that I like the car, but can't offer anywhere near the asking price. I'll throw out a lower offer than what it is worth to me and see if he still shows willingness to negotiate. It gives me room to move up to a fair agreement.
    If he's offended, I walk. There's always lots of cars to buy, but not always cash in your pocket.

    Posted using the Full Custom H.A.M.B. App!
     
  22. Jessie J.
    Joined: Oct 28, 2004
    Posts: 410

    Jessie J.
    Member

    I've watched some of the less expensive project cars listed For Sale here on the HAMB, drop as much as 50% over the months.
    Often makes me wonder if the price they finally reduced to would have clinched a deal in the first place.
    Sometimes the sellers thinking they are sitting on a gold mine, set a price ridiculously high, then when they don't get an offer after months of ads, quietly get rid of their over-priced turkey for scrap metal. What a waste.
     
  23. As a seller, some may state OBO in hopes of getting a bidding war started. As a buyer, OBO means I can make offers of less (25% or more If I sense other interested parties involved) than the stated price. If I look at something and my perceived value is more than 25% less than the stated price, I will humbly state that I feel I value the item a lot lower than he does and turn to leave. If the other party asks for my opinion of value, I will give it to him and take it from there.
    I don't like to lowball then dicker, (unless it is your sister) so I will say I will give $XXX firm and that is the end of negotiations as far as I am concerned. I try to have cash equal to his asking price on me when I go to look, (not that he will get all of it) or I will tell him exactly when I will pay (Maybe a down payment if I am comfortable with it)
     
  24. bcarlson
    Joined: Jul 21, 2005
    Posts: 935

    bcarlson
    Member

    My feeling is that everything is negotiable, regardless of whether they use obo. If you don't like the price, offer less. They can always say no.

    Good luck!

    -Ben

    --
    http://www.drillist.com - Hot Rod classifieds done right.
     
  25. WAmade
    Joined: Dec 20, 2013
    Posts: 13

    WAmade
    Member

    OBO is a negotiation game.

    Best to scope the market and see what is for sale that is comparable to what you are offering on. From knowing what is out there and what prices they are asking means you can make an educated offer. Obviously by making an offer that is way below the market price may be met with a cold reception. On the other hand it also pays to view the car in person and get an understanding of the sellers situation and motivation to sell.

    If they are in a desparate position that they have to sell, then maybe a bargain can be had. As everyone else has stated, each seller and each buyer are unique. Your offer needs to suit the product and the circumstances. This can only be gauged in person and face to face. you will learn from someones body langauge and tone how your offer will be considered before you even make an offer.

    Your offer needs to be genuine and have a reason to back yourself up if its considerably lower than his asking price. if other vehicles of similar type and condition are half the price he is asking, use this to support your offer. Find other cars that he can view on the internet to make him feel more comfortable with your offer.

    My final advise that i work off is. "Your car is only worth what a buyer is prepared to pay for it" so to put it in simple terms. if the buyer believes it is worth $10,000 all day long, then why has it not sold 100 times before you came to view it. Offer 10 - 15 % less than what the highest amount you are prepared to pay for it. Gives you room to come up and the chance for the seller to make a little more on your first offer.

    Making a lowball offer without speaking or turning up to view the car in person is like being dropped by your girlfriend via a text message. Nobody likes it and its not a way to do business.

    Put some cash in your hand, dangle it under thier nose and try your luck.

    Sorry for the Novel. hope this helps put things into perspective.
     
  26. VoodooTwin
    Joined: Jul 13, 2011
    Posts: 3,453

    VoodooTwin
    Member
    from Noo Yawk

    I've never heard of that. If you were selling a car for "$10,000 or better offer", why would anyone offer more than $10,000? Have you ever sold a car for more than your minimum advertised $?
     
  27. jazz1
    Joined: Apr 30, 2011
    Posts: 1,534

    jazz1
    Member

    Very flexible, knock 30% off, the seller is stating the vehicle is overpriced.
     
  28. wsdad
    Joined: Dec 31, 2005
    Posts: 1,259

    wsdad
    Member

    I've seen ads that say, "$3000 to $2500." I don't get that. Do they think I am going to offer them any more than $2500 now that I know they are willing to accept that? Are they saying they would turn down an offer if it was outside of this range, such as $3100?
     
  29. I wouldn't offer less than 50% of the asking price. If half of too much is still too much I move on.
     
  30. nailheadroadster
    Joined: Jun 7, 2006
    Posts: 1,525

    nailheadroadster
    Member

    50% off the asking price? Not typically an offer that would be accepted. HOWEVER... there are plenty of clowns out there that put a ridiculously high price on something in hopes someone will pay it, so you never know what they will really take for it until the cash comes out.

    The Ass Monkey Garage guys have people thinking they can wheel and deal like they see on TV so they will offer a waaay low price. Sometimes it may work. It all depends on the situation.

    If I am truely interested in purchasing an item and feel the asking price is too high, I always tell the seller that I do not want to offend them with a lower price. That typically leads into a "What would you offer?" discussion. I feel that prefacing it that way lets the seller know that I am serious and ready to buy. If they dont like my offer (they never do) that sets the ground work for negotiations. Very rarely have I gotten someone upset using this tactic. Now if you come right off and say to me "Its not worth it... how about XXX (50% off thier asking price)" I would assume you are not a serious buyer and end the discussion.
     

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