Last post on Jan 22, 2013 at 8:12 PM
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#5286 of 5288 Paying Cash, Unsure about trade-in, how to get best deal?
Nov 10, 2012 (10:34 pm)
I have finally talked my Mom into getting a new vehicle to replaced her high-mileage (135k) 2007 Ford Explorer. I'm pretty sure that she has decided on a 2013 Hyundai Santa Fe Sport. I think it's a great fit for her needs and the long warranty coverage is reassuring.
Carmax and local dealership that buys used cars have both made offers that are far below what the pricing guides show for trade-in value. After adjusting for the high mileage, all of the pricing guides (KBB, Edmunds, NADA) show the Trade-In Value as $8200-$9,900 in Good to Very Good Condition. It is in Excellent condition, but Carmax only offered $6,100 and the other dealer offered $6,500). If we can't get at least $7,500, I plan to sell it privately.
She will be paying CASH for the new car, which I plan to keep quiet until after we've negotiated the vehicle price (and trade-in, if applicable). I had to explain to her why paying cash does NOT improve her negotiating power because dealers make a profit from financing.
Any advice on how to deal with these two situations? My plan has been to tell the dealer that we aren't sure whether we'll be trading-in the Explorer, but we'll let them appraise it and see what they have to offer. As for how we'll be paying, I really hate to lie, but I think we say should say that we haven't decided. I'll tell them that we have been pre-approved by her credit union (she has a credit score of 720+) and we'll see what they have to offer. Then if we pay using Cash, they won't know the source of those funds.
Any thoughts or suggestions?
#5287 of 5288 Re: Paying Cash, Unsure about trade-in, how to get best deal? [igozoomzoom]
Nov 11, 2012 (9:20 am)
I agree about the trade in. That is what I did. Negotiate on the new car, and when done, see what they offer on the trade. I just tell them that I am willing to go either way, but that I am negotiating the price first on the new car, so you will get a true wholesale/buy figure, not a shell game!
for the money, I think you are worrying way too much about it. They don't really care that much on the floor. So if they ask, just tell them you have not decided, and that once you are set with the deal you will see what they have to offer. All that question really does IMO is let them know if you are a payment buyer. Once they know you aren't, the price should be the price.
Jan 22, 2013 (8:12 pm)
A reporter would like to speak to someone who is going to be in the market for a new car in the next few months because their lease is expiring. If you fit this description, please email your daytime contact info to predmunds.com by Friday, January 25, 2013 at noon PT/3 p.m. ET.