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The 7 - Random - Car Trade-in value Register and log in to post!
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Mike Zeidler
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#1 Posted on 20.4.05 1505.14
Reposted on: 20.4.12 1521.09
I've got the opportunity to buy a repossessed SUV from my bank for $11,000. I've done some checking (www.kbb.com, www.nadagudies.com), and the average trade-in value for said SUV is between $14,850 and $15,250.

What would happen if I traded in the SUV for a car that was priced under the trade-in value? Would I get money back? Would I just forfeit the difference?

I know car dealers pay off the remainder of your loan with the newly acquired car loan, so it's not like I'll lose money, but the extra $3800 would be *really* nice

(edited by Zundian on 20.4.05 1508)
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DJ FrostyFreeze
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#2 Posted on 20.4.05 1728.08
Reposted on: 20.4.12 1729.01
    Originally posted by Zundian
    What would happen if I traded in the SUV for a car that was priced under the trade-in value? Would I get money back? Would I just forfeit the difference?
Your best bet is probably to sell the SUV for the cash, since the selling value is going to be higher than the trade-in value anyway, then you can buy what you want.

But if you prefer to go the way you described above, I doubt the dealer will want to part with any money at all. They'll most likely just try to hound you into trading in your SUV in for a more expensive car.
Zeruel
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#3 Posted on 20.4.05 1837.40
Reposted on: 20.4.12 1837.50
But...you only pay tax on your new car on the AFTER-trade-in value. (Unless that's an urban legend passed on to me. I've been told this by alot of people, none of which actually tried to find out if it was true or not.)

IF your trade-in value is more than what you're buying, you will get the difference, but they'll try to give you credit and not cash, or try to load options onto the car so they don't have to give up cash.

What kind of car are you going for that will be less than the $15K on your trade-in?
Mr. Boffo
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#4 Posted on 20.4.05 1846.50
Reposted on: 20.4.12 1847.56
    Originally posted by Zeruel
    But...you only pay tax on your new car on the AFTER-trade-in value. (Unless that's an urban legend passed on to me. I've been told this by alot of people, none of which actually tried to find out if it was true or not.)

I just looked over the invoice from when I bought a car a few months ago, and it is apparently true.
wmatistic
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#5 Posted on 20.4.05 1859.16
Reposted on: 20.4.12 1859.26
The tax thing is true in most states but not all. So you need to check on that depending on where you live.

I think you're better off selling it youself. It's more work, but you'll get more money out of the deal. You can price it high and just wait on that sucker that doesn't know what it's really worth. Plus if you try to trade it in, they are not going to budge an inch on the price of the car you want. If you sell it, you'll have more money to spend and more leverage when negotiating price if you still want to buy a car after that.

And just as a side note, don't be one of those dorks that just tells the dealer they can pay so much per month for a car. Dealers love hearing that and try to push you to tell them. Then they do whatever they can to get that monthly price while making the most they can off of you. If you trade in, negotiate the price of the vehicle you want first. Tell them you don't have a trade in. Then they're stuck cause they can't back off what they told you. Now you negotiate the trade in value. Again, they'll really low ball you at this point because they'll owe you money. Just some advice.

(edited by wmatistic on 20.4.05 1702)
Mike Zeidler
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#6 Posted on 20.4.05 2310.01
Reposted on: 20.4.12 2310.29
that's just it, it's *actually* worth around $15,000 (trade-in, that is, $17,700 for private sale) and I can pick it up for $11,000. I guess I'll ask for what I could get for it if I did sell it myself, and throw in my current car (a rebuilt from salvage '93 Toyota Tercel) for $500 and see what they say.

Tomorrow will be a fun day, that's for sure.
too-old-now
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#7 Posted on 21.4.05 0901.36
Reposted on: 21.4.12 0902.57
If you go into the dealership informed about what the car you want should cost (after doing your homework and figuring in dealer costs, incentives, pushbacks, and allow the dealer to have room for a reasonable profit, then you should be in good shape. Let the dealership know you are informed, and are willing to play the games if they want, but you hope they understand you'd prefer to short-cut everything and get right to the bottom line.

I have had a fair amount of success in negotiating car deals for myself, as well as family members. The best technique is to come in informed with what you want and know ahead of time they have it, and YOU need to do most of the talking.

The dealership is entitled to make a fair, reasonable profit, and as long as you show them they can do that without all that much work on their end, you're gold.

They won't be very willing to give you more than necessary for the trade - be sure it is in immaculate condition first - but it is not unheard of to get cash back from a dealer. A good friend of mine inherited a virtually new Lincoln Town car several years ago from an aunt, it was worth $20 grand on a trade and she traded it for a Dodge Neon for approx $14,0000, and pocketed the nearly six grand difference.

Personally, I no longer am a fan of trying to sell a vehicle myself - unless perhaps you can put flyers up at work, etc. Placing an ad in a newspaper might mean you get hundreds of calls, people don't show up when they say they will, its a really big hassle. If there is a reputable dealership

Don't rule out getting a credit from the dealership for future service work - lifetime free oil changes, etc. allowing you to save more money down the road. When it comes to cars an "extended warranty" is very often a no-brainer.

Good luck, let us know how you make out.


Mike Zeidler
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#8 Posted on 21.4.05 1520.53
Reposted on: 21.4.12 1521.14
Well, we went to test drive it, and notice right off the bat the the service engine light was on. We thought it may be something minor, so we took it out on the road for a short test drive.

During the course of the 1/2 mile test drive, the seatbelt light would come on and go off intermittantly (I was wearing mine) and toward the middle of the drive the oil light came on, and a faint smell of burning oil started to appear.

By the end of the drive, the engine was ticking rather badly (it sounded like an old diesel engine) and we'd decided that the durango wasn't worth it, even *if* we could get a much better trade-in value for it (though that was in doubt with the too engine lights on).

Ah well, it was a nice dream while it lasted. (:
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