Trading in a vehicle

[alpinehyperlite]

When i went in to get my Jeep, I was going to trade in my 2003 F-250 Lariat FX4 with 80k on it. KBB was $18k without the lift/wheels/tires/audio equipment and a $3k bed cover. They offered me like $7500 on trade in. I told them to get f'd and sold it for $16,500 in 5 days then did an in and out through the dealership.

 

[NOShooter]

Ive got news for all of you. no one is using KBB. Look in the used car manager's office or in his back pocket and you will find , more than likely, the galves pricing guide. A car dealers target profit on your trade when they move it ( either on their lot or at auctions) is usually $1800 ( this is the profit margin that is the minimum the controller wants to see).

At the end of the day it is also nice to have a source to get a close estimate of real dealer invoice.

I qualify for ford Z plan ( through Father in Law's tenure at ford), which is awesome. Usually i'm negotiating what my trade-in value is, as Z plan pricing is fixed, ford corporate employee pricing ( Any active incentives apply as well).

I have had an issue with a dealer before. One quick call to ford corp, identify myself, dealership gets a star knicked off and i get an apology from the owner. Ford doesnt mess around with how their dealers treat Corp employees and family members.

 

[pete70056]

Cousin, been a car guy over 30 years. It rarely benefits you to trade your car in. Easy. But not the best in a financial sense.
Exceptions might be deals, where the car company includes a bigger rebate to current owners of brand "x" etc. Yes, they expect to make money on what they sell you. They also, expect the same or more, when selling your trade in. You have to decide, how much your time and trouble is worth.
My daughter traded in a black Expedition 4x4, to my dealership that just had our parish coroners office trade in 20 black Expedtion 4x4's. NADA goes out the door at tha point. It also goes out the door when when the local auction is selling cars like yours, for way less than that book.

 

[Neil09]

It depends on how bad they want to sell. My last two trades I got private party value. Good luck and give-em hell.

I'm looking at getting a used SUV, that's actually worth less than the truck I was thinking of trading in. They had one that fit all of my wants, and I actually wanted to buy it without trade in if we couldn't come to agreement, but had two salesman promise to call me back after they "run some numbers" and I haven't heard back from either. May wait to find one somewhere else, since I don't plan on following up with them, and putting my truck for sale in the mean time

 

[tikanni]

I'm looking at getting a used SUV, that's actually worth less than the truck I was thinking of trading in. They had one that fit all of my wants, and I actually wanted to buy it without trade in if we couldn't come to agreement, but had two salesman promise to call me back after they "run some numbers" and I haven't heard back from either. May wait to find one somewhere else, since I don't plan on following up with them, and putting my truck for sale in the mean time

If you know what you want, and find a couple vehicles that fit your needs, check there CarFax. If the car has been for sale over 90 days, they are more willing to deal. Some might even do closer to 60 days. If they don't want to deal, then they don't want your money.

And NEVER become emotionally attached to a car you are thinking about buying.

 

[Emperor]

Naa, Seriously man, Oilfield people are dumping trucks left and right as well as other toy's, Go in and poor mouth them, You may be surprised how low will they go!!!

Sadly; this^ is the fact!

Some of these poor bastards are upside down on their bills without those good paying jobs, and there is no immediate end in sight. A really good play (or scumbag one depending on your perspective), is to search those newspapers from Lafayette to Morgan City (Venice too), looking for desperation. There is plenty to go around.

And you may feel like **** knowing that a guy is willing to drop his drawers on his vehicle because he is going under financially, but the reality is, he will be making a choice of free will; albeit one born out of desperation.

 

[Neil09]

^^this is why I'm buying a used one with miles already, rather than a new one. And ONLY buying because I have NO choice but to get a bigger vehicle, I still have 8 months to get one so its no big rush..

 

[Whitebread]

I'm looking at getting a used SUV, that's actually worth less than the truck I was thinking of trading in. They had one that fit all of my wants, and I actually wanted to buy it without trade in if we couldn't come to agreement, but had two salesman promise to call me back after they "run some numbers" and I haven't heard back from either. May wait to find one somewhere else, since I don't plan on following up with them, and putting my truck for sale in the mean time

^^this is why I'm buying a used one with miles already, rather than a new one. And ONLY buying because I have NO choice but to get a bigger vehicle, I still have 8 months to get one so its no big rush..

Being that yours is worth more and you are in no rush you may want to sell yours and buy what you want. "Trading down" and trading "two for one" seems to make dealers "sense blood in the water".

The fact is the internet has changed the game on car buying and dealers are desprately trying to find new ways to look competitve but milk you at the same time. I would take pictures and post adds and see what happens.

Another thing that is in play is sales tax depending on where you live and the value of your trade it may make cents (pardon the pun) to loose a little on your selling price. Example: you trade a $30,000 truck for $28,000 and your tax rate is 9% so you get a $2,520 credit towards the tax portion of your purchase. So you lost $2000 on the trade but saved $2,520 in taxes. In the end you are $520 ahead.

I really perfer to shop online and you can still do that with a used vehicle, but you will run the risk of seeing some really flattering pictures online and getting there and seeing something different. I've seen it locally repeatedly and I actually drove 2 hours and still bought a truck some years that had a few extra cosmetic issues.

 

[JadeRaven]

They will start off using KBB, and they will drop one level lower than actual. I just traded in (Monday) a 2014 vehicle that had not a scratch on it and they started with "good" value then deducted $1500 for a windshield and tires. This was after negotiating the price of the new car first. KBB's definition would have put my vehicle in at least "very good" status. They will print you a KBB price and only include excellent, good, and fair. They omit the "very good" category alltogether. Then I left, and called another dealer. Told them I was ready to buy now, and if they wanted my business I requested their best price quoted on the phone. They came back with the same price on the new vehicle that I was getting already, so I felt comfortable. I went back, continued negotiating, and ended up getting an additional $1500 off the sticker and got my trade to within $500 of what I wanted. This was the last day of the month for them and they needed numbers (which is probably also a lie).

Yeah, they will generally start with trade-in price and deduct from that anything that the car might need. Thing is, trade-in price already assumes that the car needs a few things. So they double-dip to justify a super lowball.

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Ive got news for all of you. no one is using KBB. Look in the used car manager's office or in his back pocket and you will find , more than likely, the galves pricing guide. A car dealers target profit on your trade when they move it ( either on their lot or at auctions) is usually $1800 ( this is the profit margin that is the minimum the controller wants to see).

At the end of the day it is also nice to have a source to get a close estimate of real dealer invoice.

I qualify for ford Z plan ( through Father in Law's tenure at ford), which is awesome. Usually i'm negotiating what my trade-in value is, as Z plan pricing is fixed, ford corporate employee pricing ( Any active incentives apply as well).

I have had an issue with a dealer before. One quick call to ford corp, identify myself, dealership gets a star knicked off and i get an apology from the owner. Ford doesnt mess around with how their dealers treat Corp employees and family members.

Most dealers use manheim auction value.

If you ever hear "we already have a buyer for your vehicle" that means they're sending it to auction.

 

[JadeRaven]

Another thing that is in play is sales tax depending on where you live and the value of your trade it may make cents (pardon the pun) to loose a little on your selling price. Example: you trade a $30,000 truck for $28,000 and your tax rate is 9% so you get a $2,520 credit towards the tax portion of your purchase. So you lost $2000 on the trade but saved $2,520 in taxes. In the end you are $520 ahead.

Good example.

Very often though the dealer only offers you $25,000 on that truck, so you don't even get your $30k trade value even including the tax benefit. So you end up having to sell it yourself for $32k.

And they wonder why people hate dealerships...

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I'm looking at getting a used SUV, that's actually worth less than the truck I was thinking of trading in. They had one that fit all of my wants, and I actually wanted to buy it without trade in if we couldn't come to agreement, but had two salesman promise to call me back after they "run some numbers" and I haven't heard back from either. May wait to find one somewhere else, since I don't plan on following up with them, and putting my truck for sale in the mean time

Costs nothing to list your truck on craigslist, cars.com and ebay.

 

[Whitebread]

Good example.

Very often though the dealer only offers you $25,000 on that truck, so you don't even get your $30k trade value even including the tax benefit. So you end up having to sell it yourself for $32k.

And they wonder why people hate dealerships...

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Costs nothing to list your truck on craigslist, cars.com and ebay.

Agreed and agreed. This is why I have swon off most local steelerships.
I had multiple dealers offer me 14,000 for my Camaro when they were advertising a used one for 21-23,000 and they wanted top dollar for theirs.
The dealer I traded it to paid 17,000 which was ppv plus I got a $1,200 credit on the tax side. So on my deal I couldnt have sold it out right for $18,200. To top that off I bought a 42,000 msrp truck for $30,000 between rebates and dealer consessions. But I also bought a brand new 2013 in May 2014 from a big volume national dealer, so they were pretty motivated to move them.

 

[Emperor]

And they wonder why people hate dealerships...

Any business that is regulated by / or can only work in conjunction with mandated government edicts or laws (licensing, registration, insurance), is inherently ripe for corruptive behavior whether within or without.

Dealerships themselves are completely innocuous businesses; just like selling snow balls out of a shack. However, when your customer is almost rendered useless in society without a vehicle, and they are forced to report the sale, taxes, registration, etc; attracting them to ultimately come through a business that sells vehicles; all the dealerships or car lots has to do is wait for prey. It's akin to waiting next to a food plot for deer because they must eat!

At that point the hunter can be humane and quickly dispatch the animal, or be a cruel heartless scumbag that gains pleasure from watching the animal writhe in pain!

 

[Whitebread]

At that point the hunter can be humane and quickly dispatch the animal, or be a cruel heartless scumbag that gains pleasure from watching the animal writhe in pain!

Careful between this and the prarie dog comment PETA and the SPCA goons are probably triangulating your signal as we speak.

 

[Emperor]

Careful between this and the prarie dog comment PETA and the SPCA goons are probably triangulating your signal as we speak.

Here's what they (or anyone trying to triangulate my position), can do!

 

[sandman7925]

WTH? Are you in the business? The OP is trying to learn a few things about the dealerships. Everyone realizes dealerships have to make a profit but they don't have to totally slaughter you either. I am in sales and one of the best lines I ever hear concerning sales is,

" you can shear a sheep many times but you can only gut it once."

Think about it

I'm not nor have I ever been in the business. And my comment was more towards everyone else acting like the dealerships owe them something. They don't have to take you're trade in or offer you anything at all. It's called "sales" for a reason. If they don't sell at the best price they can they don't make a living. If anyone doesn't like the process then like I said they can pay cash at MSRP pricing and sell their current vehicle themselves if they don't like the process.

 

[JadeRaven]

I'm not nor have I ever been in the business. And my comment was more towards everyone else acting like the dealerships owe them something. They don't have to take you're trade in or offer you anything at all. It's called "sales" for a reason. If they don't sell at the best price they can they don't make a living. If anyone doesn't like the process then like I said they can pay cash at MSRP pricing and sell their current vehicle themselves if they don't like the process.

Or you could not buy a car. Buy used. Ride a bike.

Problem is, like Emperor said above, dealerships only exist due to state & federal law. And, as such, if you want a new car, you have to pay a dealership extra money than you would ordinarily have to in exchange for literally no service, and actually in exchange for having to go through a rigmarole.

Trade-in is arguably allows you to dispense with having to sell your car yourself, but again the dealerships are super greedy and you're forced to play games to make sure that you don't get completely bent over.

But sure, you can not buy a car from a dealer.

 

[sandman7925]

Or you could not buy a car. Buy used. Ride a bike.

Problem is, like Emperor said above, dealerships only exist due to state & federal law. And, as such, if you want a new car, you have to pay a dealership extra money than you would ordinarily have to in exchange for literally no service, and actually in exchange for having to go through a rigmarole.

Trade-in is arguably allows you to dispense with having to sell your car yourself, but again the dealerships are super greedy and you're forced to play games to make sure that you don't get completely bent over.

But sure, you can not buy a car from a dealer.

I've played the buying game myself. I've probably owned more vehicles then most people my same age. And that's not including the boat, motorcycles and Atvs I've had. If I don't like the numbers I walk, I've never felt the need to express how evil and sinister dealerships are. That's all I'm saying. I bought a suit yesterday for more than double what I sold my very first car for. I didn't complain about the price because I walked in there to buy an expensive suit.

 

[JadeRaven]

I've played the buying game myself. I've probably owned more vehicles then most people my same age. And that's not including the boat, motorcycles and Atvs I've had. If I don't like the numbers I walk, I've never felt the need to express how evil and sinister dealerships are. That's all I'm saying. I bought a suit yesterday for more than double what I sold my very first car for. I didn't complain about the price because I walked in there to buy an expensive suit.

 

[Whitebread]

I'm not nor have I ever been in the business. And my comment was more towards everyone else acting like the dealerships owe them something. They don't have to take you're trade in or offer you anything at all. It's called "sales" for a reason. If they don't sell at the best price they can they don't make a living. If anyone doesn't like the process then like I said they can pay cash at MSRP pricing and sell their current vehicle themselves if they don't like the process.

I guess I just dont get where you are coming from with this. Ok so I dont like a deal, so I should just sell mine out right and overpay for theirs?

 

[sandman7925]

Whitebread, tapatalk aletrs me when you quote me but I can't read you're post because you are on my ignore list. So you can save you're self the trouble responding to anything I post.