Trade in value diss

[Dexter Morgan]

I hope you guys understand that trade in value means absolutely nothing. It all depends on the delta you end up paying. They could give you 40k for your trade and still rip you off really bad. Car dealers generally make money no matter how great you think your deal is. The more factors in the equation (trade, finance, extended warranty, dealer options, pre-paid service...) the more profit they make. You are almost always better off without a trade.

This is offset in some states by the tax credit. Yes you take a hit on the trade but you need to add back in the tax difference.

 

[bythehour]

Again, only discuss one number and that is the DIFFERENCE between what you are trading and what you are buying. Go to Edmonds.com or one of those sites and get a number you think is fair for your trade. Find the invoice price of the new vehicle you want to buy. That difference is the negotiating number. That way you don't care what they charge you for the new vehicle or what they give you for your old vehicle because if you get the difference worked out to your satisfaction then the selling price is a moot point.

I fully agree with this. The prevailing advice is to negotiate each transaction separately (the buy and the trade-in). I've found that to be a waste of time and potentially dangerous. If you've done your homework, you should know what the "right" numbers are for the buy and sell; only the net really matters.

I've also found that dealers will try to use separate negotiations to screw you. They will get you to agree on the buy price. Then, taking advantage of the fact that you've already mentally "bought" the new car, they lean on you for a lower trade-in value.

 

[1engineer]

This is offset in some states by the tax credit. Yes you take a hit on the trade but you need to add back in the tax difference.

It does not matter. You decide the difference (what you are willing to pay) and give them that number. You make it the out the door drive home number. Let them then figure out all the taxes, document fees and everything else. This is really the best way to do it. You just gotta be realistic.
For example don't pick the high list price for your used vehicle and below invoice price for the new vehicle as that dog won't hunt. I usually take the high trade in value on the current vehicle and the invoice price on the new vehicle for a starting point. They will counter of course and cite taxes, license, document fees, etc but so what. Since you have done a bit of research you will know what the low trade in value for your current vehicle and the list price is for the new vehicle. Somewhere in between is a number both of you can live with. I have bought 12 vehicles in the past 10 years as I currently have four drivers and four vehicles. This is the method that works.

 

[manofsteele2003]

Sorry man somebody is blowing smoke to the tune of about $4K minimum for a 4X4 SR5 Premium. I know what the dealers pay.

So the MSRP of a Sr5P is right around $38k so you're telling me that there's no way you could get $6k off the sticker? The sticker on mine was right about $42k and I got it for $36k. You do know that dealers, especially large volume ones, lose money on new cars all the time right? Dealers make most of thier money on used cars, service and kick backs from the manufacturer. How do I know this? I worked for a dealer for about 5 years. Now I didn't see the paperwork but I don't see any reason they would lie about it, maybe I need new friends

 

[manofsteele2003]

And BTW I was also skeptical of the number when they told me what they paid, but it's possible I guess.

 

[Lester Lugnut]

It does not matter. You decide the difference (what you are willing to pay) and give them that number. Your make it the out the door drive home number. Let them then figure out all the taxes, document fees and everything else. This is really the best way to do it. You just gotta be realistic.

This is what I've always done. The realistic part can take a shot or two to nail down. Six Toyota dealers in my area. Half I've never bought from because their willingness to negotiate is non-existent, but I use them to get the realistic part worked out. Once I realize I'm close, I end up buying from the same place I've bought the last 3 from. Interesting how it's always worked out that way.

The part about buying w/o a trade-in is true in my opinion. If you think you got a really good trade-in price, you can bet the numbers on the other side of the equation got kicked up.

To borrow a comment I recently saw on another forum:

Customer: Can I have free money?

Dealer: No

Customer: OK

 

[ic0517]

This is what I've always done. The realistic part can take a shot or two to nail down. Six Toyota dealers in my area. Half I've never bought from because their willingness to negotiate is non-existent, but I use them to get the realistic part worked out. Once I realize I'm close, I end up buying from the same place I've bought the last 3 from. Interesting how it's always worked out that way.

The part about buying w/o a trade-in is true in my opinion. If you think you got a really good trade-in price, you can bet the numbers on the other side of the equation got kicked up.

To borrow a comment I recently saw on another forum:

Customer: Can I have free money?

Dealer: No

Customer: OK

First car was F150, no trade in. Second car was actually I get the wife's and the wife gets a Sienna, and I sell the F150. Holy crap. The amount of people trying to low ball me on a low number already. People from the country south of the USA offering me $300. Get out of here. Lots of BS. Finally found a guy that his house burned down and needed to get to work on it right away. He comes into my house, with his friend, with the wife and kids sleeping and lays down all cash. I figured no way I can argue with that.

Then he leaves. Then I think it over, him and his buddy could have jumped me, raped my wife and killed my kids. Screw that! No more! From then on, I just trade it in, accept that I am going to take some up the rear. No more dealing with people that can't afford a new car. Just ain't worth it to me.

And then yeah, I try to switch the argument to "how much of a check am I going to have to write, and I have a number of the difference, and they can jack with the trade in and sale value all they want.

 

[Kennyr44]

I got a form E-Mail back saying we are the greatest dealership and we appreciate your contacting us about doing business yada yada the guys name etc. We strive to make you happy etc. I will call you Friday. He never called me.

 

[Lester Lugnut]

I got a form E-Mail back saying we are the greatest dealership and we appreciate your contacting us about doing business yada yada the guys name etc. We strive to make you happy etc. I will call you Friday. He never called me.

Yep.

I was thinking about a Tundra before the 4Runner. Must have had 6 dealerships tell me they were Toyota's Tundra sales leader in my state.

That means that next year 6 teams will win the Super Bowl. Jerry Jones might finally get lucky.

 

[Kennyr44]

Yep.

I was thinking about a Tundra before the 4Runner. Must have had 6 dealerships tell me they were Toyota's Tundra sales leader in my state.

That means that next year 6 teams will win the Super Bowl. Jerry Jones might finally get lucky.

Im sitting here with money in my pocket ready to go and the guy doesnt even take his shot.