How much $ could I get on this trade in?

[spaceman]

wait... what?

so if a dealer offers me $10k i can get atleast $20k on the private market?

if a dealer offers me 7k, i can get 14k??

LOL

dealer isnt offering anything
theyll either boost trade and tack on msrp
or low trade and reduce msrp

 

[mvbighead]

I've seen people try that. A more common scheme is to negotiate the deal on the car, then say "Oh, by the way, I have a trade in". If you're a competent negotiator then it doesn't matter if you take care of the trade in up front, and if you're NOT a competent negotiator you could very easily talk yourself out of a good deal on a car that you like.

This is exactly what I was referring to in my example. I traded an 03 Impala in for an 07 Impala. Did essentially the same thing, and what winds up happening is the dealer then piddles about muddying up the numbers to get it back in his ball park.

The plain and simple fact is that, in most cases, you get the most money for your trade-in by selling it privately. Not only do you get good money for it, but you are helping someone else in the process by saving them money on paying a retail price because they can't find someone to sell it privately. Personally, I didn't go that route with my Impala because I was young and stupid. However, selling a car privately isn't as daunting as you make it seem. I put a fair price out on my wife's 06 Solara and within 10 days, I had someone look at it, and agree to buy it. Met him at his bank a few days later and the bank issued us a check.

Simple fact is, if he know he is getting rid of it now, there is no reason not to simply get a trade-in estimate from a dealer, and then list in online (Craigslist or what have you) for 1-2k more than trade in value, or comparably to other listings on Craigslist or Autotrader. If no one bites in a short time frame, trade it in. There is no sense not making an effort to sell privately if he knows he is getting rid of it anyway.

Again, the plain simpleness of going in and buying a car outright is much simpler than having a dealer get sneaky with numbers because a trade-in enters the equation. My 2 cents on that one anyway.

 

[Doppel]

No offense, but I don't agree that buying a used car is a better financial decision. A used car CAN be the best decision in some cases, but in general I still think you are better off buying a new car than a used one. Let me explain why I say that.


When you buy a used car you never really know for sure how the car was treated before you bought it. Did the previous owner properly take care of the maintenance on the vehicle? Did the previous owner have kids that drove it and hot-rodded it to death? Why did the previous owner get rid of the vehicle? Was the vehicle continually breaking down and the owner felt it was time to get rid of the piece of junk? There are probably hundreds of possible reasons why the used vehicle is sitting on the dealer's lot. It may even be the previous owner came into some unexpected money and just wanted to purchase a nicer vehicle. But do you really want to take the chance that you may be buying someone else's problems?

Additionally, when you buy a new car you can usually get a rather low interest loan right from the manufacturer. Plus, for some strange reason that I don't fully understand, lending institutions such as banks, credit unions and savings and loans, tend to be more lenient in giving cheap loans on new vehicles than they are lending money for used ones.

Also, when you buy a brand new vehicle, you have a substantial warranty on it. If you have a problem, you can get the problem resolved without all that much of a hassle. Try taking a used vehicle back to the dealer 6 months after you buy it and tell them you want it fixed for free because it now has some major problems with it.

I know you can take precautions when buying a used vehicle. You can take that vehicle to a mechanic you trust and have the mechanic go over it with a fine tooth comb. But unless you are good friends with a mechanic, it will no doubt cost you to have the car checked out. However, doing so can potentially save you a lot of money down the road so it is in your best interest to have the vehicle checked by a mechanic. The only problem is, not very many people do this because it will cost them some money and they don't want to pay it, and that is very unfortunate.

If you purchase a brand new vehicle, and if you take really good care of it, it will most likely last you at least 150,000 miles and probably a lot longer. Right along with this is would be the idea that when you buy a new vehicle you get the latest and greatest technology in-so-far as fuel economy and safety features. If you buy a used vehicle, the odds are it will get fewer miles per gallon, it won't have all the latest safety features, and let's face it, you will have no real way of predicting how long the vehicle will last. How long the used vehicle can last will depend upon several factors. Factors like how many miles the vehicle had on it when you bought it, how well the vehicle was maintained before you got it, how the car was driven before you got it, and no doubt all sorts of other factors that I can't think of off the top of my head.

Anyway, I am of the opinion that buying a new vehicle, in most cases, is a better financial decision than buying a used vehicle. That is just my opinion and I am quite certain there are many others who will disagree. That's OK, this is America, we can disagree and still be friends.

I consider buying a slightly used car better financial decision. An off-lease car maybe with a little bit left of the bumper to bumper. That way you know it's mechanically 100% and you shave off a huge bulk of depreciation. If you buy a certified car you can end up with many years left of power train warranty.

If you're mechanically handy and don't mind the risk in it, all things equal buying a more substantially used car is better yet, but it does bring unknowns into the equation, so in a way you buy that reassurance when you buy something newer.

Most of this is a wash if you truly intend on buying new and keeping it for 150k but not many people buy new and keep a car for 10 years.

You obviously make more money selling private, but it's a hassle. The more expensive the car the most you stand to lose with trade-in so maybe the hassle is worth it but if you're talking $1500 trade in or $2200 private party, you should trade it in. PP generally brings in many clowns and many wasted hours and days.

I mean, who but my dad buys a Camry with a 5MT?

Very few people. Despite a lower MSRP than an auto, I believe that leasing a 5 mt is more expensive because they drop in value more substantially.

 

[MikeMike]

dealer isnt offering anything
theyll either boost trade and tack on msrp
or low trade and reduce msrp

i know how the game works... I've sold cars before...

you will NEVER find a car worth >$5k(to a dealer) that a private party will double what they offer...

Also, yes... dealers can lowball the trade, or stay at MSRP etc...

this is why you get the dealer to give you a fair price on the car first... then say 'well why dont you take a look at this, i already had dealerships X, Y and Carmax give me quotes, so I would like to see yours... I also looked up KBB, BB and had a friend look at recent manheim auto auctions, so i know the going rate' (hint YOU BETTER HAVE, specifically the manheim one, if you have the numbers of other cars with the last eight of your VIN, you have a very very very good negotiating tool, just know that those numbers will be NO WHERE near kbb)

 

[spaceman]

ionno
not double
too much trickery with a trade in.
i sold every car i had cept a subaru that had 230,000 on it and was 15 years old, that one i traded.
2x..i agee, u wont get that, but u stand to lose significant $ by trading in in almost every scenario.
to the tune of several thousands of dollars either on the front or back end..its semantics and a suckers bet.

 

[simonizor]

wait... what?

so if a dealer offers me $10k i can get atleast $20k on the private market?

if a dealer offers me 7k, i can get 14k??

LOL

Yes, probably. Think about what you posted for a second. The only car that a dealer is going to give you that much for is a car that's less than 5 years old. If they are offering you 10k, you probably paid at least 30k for it, and you should be able to sell it for about 15k privately.

Perhaps double is a bit much when it comes to higher priced vehicles, but for a vehicle that isn't worth very much to begin with, you could EASILY get double what the dealership is offering you. If your car was worth 5k private, you'd be VERY VERY lucky to get 2.5k for a trade in.

Do you not realize how little dealerships pay people for trade ins?

 

[JulesMaximus]

You're assuming wrong...trade-in values are only fair to the dealers. They are a business.

I checked edmunds and it looks like trade in on a 2004 TSX in fair condition is $5300. I wouldn't be surprised if they start out offering you $4500.

They'll clean it up and turn around and list it for $10k easily.

 

[bryanW1995]

Well, to be fair a Cobra is bit more of a specialized car compared to your average Honda\Acura.

My only experience with Carmax was when my dad was looking to sell his '01 Camry last year. Carmax gave him over bluebook for trade in and given the prices we were seeing online (and the fact it was a 5MT car) it was a no-brainer. I mean, who but my dad buys a Camry with a 5MT?

they are typically very condition-specific, and especially back up until the big 2008 recession imports generally brought a LOT more money relative to book than domestics (largely because the domestics typically ran huge rebates and the imports ran little to none). now that toyota is playing the aggressive rebate game they are getting lumped more with the domestics (and nissan), but honda is still likely to bring larger offers than you might expect. don't know if acura gets the same credit that honda does with them, however.

specifically with my cobra I had been in a small accident when I turned at a stoplight in front of another car. Ended up only doing about $2500 worth of damage to the car. From carmax's perspective, it was a 2 year old domestic that had previous body damage so they hit me low enough to ensure that they wouldn't get it.

 

[bryanW1995]

This is exactly what I was referring to in my example. I traded an 03 Impala in for an 07 Impala. Did essentially the same thing, and what winds up happening is the dealer then piddles about muddying up the numbers to get it back in his ball park.

The plain and simple fact is that, in most cases, you get the most money for your trade-in by selling it privately. Not only do you get good money for it, but you are helping someone else in the process by saving them money on paying a retail price because they can't find someone to sell it privately. Personally, I didn't go that route with my Impala because I was young and stupid. However, selling a car privately isn't as daunting as you make it seem. I put a fair price out on my wife's 06 Solara and within 10 days, I had someone look at it, and agree to buy it. Met him at his bank a few days later and the bank issued us a check.

Simple fact is, if he know he is getting rid of it now, there is no reason not to simply get a trade-in estimate from a dealer, and then list in online (Craigslist or what have you) for 1-2k more than trade in value, or comparably to other listings on Craigslist or Autotrader. If no one bites in a short time frame, trade it in. There is no sense not making an effort to sell privately if he knows he is getting rid of it anyway.

Again, the plain simpleness of going in and buying a car outright is much simpler than having a dealer get sneaky with numbers because a trade-in enters the equation. My 2 cents on that one anyway.

you probably didn't have a bunch of trashy people looking at your 06 solara, however. what if it was a '96 solara and you only wanted book (for arguments sake say that's 4k). What kind of people will come knocking on your door to look at a 4k car? All I'm saying is that it's situational.

By the way, as a dealer I'll tell you that I've made some deals happen because I wanted the trade so much. I've put over retail in some cars that I thought were perfect for my market, especially when/if I was confident that I could sell it very quickly. However, generally speaking an older/cheaper car won't have much of an impact on a deal from either perspective of the buyer or seller. Have the dealer look at it if you want, maybe take it to carmax first, if you don't like either offer you can always sell it yourself.

 

[bryanW1995]

i know how the game works... I've sold cars before...

you will NEVER find a car worth >$5k(to a dealer) that a private party will double what they offer...

Also, yes... dealers can lowball the trade, or stay at MSRP etc...

this is why you get the dealer to give you a fair price on the car first... then say 'well why dont you take a look at this, i already had dealerships X, Y and Carmax give me quotes, so I would like to see yours... I also looked up KBB, BB and had a friend look at recent manheim auto auctions, so i know the going rate' (hint YOU BETTER HAVE, specifically the manheim one, if you have the numbers of other cars with the last eight of your VIN, you have a very very very good negotiating tool, just know that those numbers will be NO WHERE near kbb)

haha, true, and not only that but remember that the cars in manheim are the ones that actually SOLD. all the others that were 1000-2000 lower got a no-sale, plus that is data that is a month or 2 old, so even on a perfect car you'll be hit a bit lower and on a car with issues it could be a LOT lower. Again, the exception is if it's a good car for that dealer to retail then all bets are off. I'd much rather pay $15k for a nice clean dodge truck on trade where I've met the customer, know the vehicle's history, etc etc, even if trade book is only 13-14k on it.

 

[MikeMike]

haha, true, and not only that but remember that the cars in manheim are the ones that actually SOLD. all the others that were 1000-2000 lower got a no-sale, plus that is data that is a month or 2 old, so even on a perfect car you'll be hit a bit lower and on a car with issues it could be a LOT lower. Again, the exception is if it's a good car for that dealer to retail then all bets are off. I'd much rather pay $15k for a nice clean dodge truck on trade where I've met the customer, know the vehicle's history, etc etc, even if trade book is only 13-14k on it.

dealerships have access to weekly sales through manheim iirc... with dates of when the car sold.

oh, and depending upon what state the owner is in, if he trades the car in for say $8,000 and could get $10,000 private, he gets a tax break on his trade in which makes the difference only $1340 which if his time is money... well...

 

[spaceman]

dealerships have access to weekly sales through manheim iirc... with dates of when the car sold.

oh, and depending upon what state the owner is in, if he trades the car in for say $8,000 and could get $10,000 private, he gets a tax break on his trade in which makes the difference only $1340 which if his time is money... well...

but it likely isnt 8k
its probably closer to 4 to 5k in actual dollars
the simple fact of the matter is
there is no way a car of any value is worth trading in, unless you just want out + are upside down.
it makes things much easier,2 birds one stone and all that
but its ridiculous to suggest getting the best "deal" for a vehicle is trading it in.
time is money, for the few actual hours to net potential several thousand more youd have to be a millionaire to not have it be worth your time in 99% of cases
trading in a car is the best deal for a dealer.

 

[MikeMike]

but it likely isnt 8k
its probably closer to 4 to 5k in actual dollars
the simple fact of the matter is
there is no way a car of any value is worth trading in, unless you just want out + are upside down.
it makes things much easier,2 birds one stone and all that
but its ridiculous to suggest getting the best "deal" for a vehicle is trading it in.
time is money, for the few actual hours to net potential several thousand more youd have to be a millionaire to not have it be worth your time in 99% of cases
trading in a car is the best deal for a dealer.

and i never suggested that 'getting the best deal' was trading in, EVER...

What if this guy knows jack crap about cars, and the guy who wants to buy it ends up wanting to do a PPI, take it to his mechanic, and then wait like 5 days... and then back out... then another round of the same thing...

i'm not tryig to argue, im just trying to point out blatant bs.