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Car Buying, Car Selling
#3019 of 3219 Paying Cash, unsure about trade-in, best way to handle?
Nov 10, 2012 (10:40 pm)
My Mom wants a new vehicle to replace her 2007 Ford Explorer EB 2WD. It is in excellent condition inside and out, never wrecked an has all maintenance records. But dealer offers for trade-in have been far less than any of the pricing guides (Edmunds, KBB, NADA). I'm considering not trading it in and trying to sell it privately.
She has selected a new vehicle, a Hyundai Santa Fe Sport, and plans to pay Cash for it. I have explained to her and my step-dad that this does NOT improve their negotiating position.
Walking into a dealership and saying I don't have a trade-in and paying cash is a lot like the customers who go to a grocery store and only buy the items on sale. Dealers are businesses, not charities and they need to make a fair profit. At the same time, I want my Mom to get the best deal possible on her new Hyundai!
How should we handle these issues with the dealer?
#3020 of 3219 Re: Paying Cash, unsure about trade-in, best way to handle? [igozoomzoom]
Nov 11, 2012 (8:13 am)
The trade in really won't be an issue. It actually simplifies the transaction.
If you go over to real world trade in values here on Edmunds and post the info on the Explorer, you'll get an idea on its value.
As for paying cash, no need to mention that. Just negotiate the price of the vehicle and ignore/deflect the questions about "what monthly payment do you want" or "will you be financing."
#3021 of 3219 Re: Paying Cash, unsure about trade-in, best way to handle? [igozoomzoom]
by Mr_Shiftright HOST
Nov 11, 2012 (9:40 am)
I think you have to look at a "trade-in" as an activity of convenience that you are paying the dealer to perform for you. It's something like (not quite like) going into a pawn shop. You simply aren't going to get a good price, because the dealer, or pawn shop, is supplying you with what you want---ready cash, on the spot.
Naturally dealers also try to low-ball trade-ins, since used car profits can be tasty for them----or, they may offer you a generous trade-in and then pack it on the new car sales price if they're confident they can do that.
another factor is that the dealer may not really want what you have to trade-in--if he's going to wholesale it for a quick buck, he has to buy it right.
#3022 of 3219 Re: Paying Cash, unsure about trade-in, best way to handle? [igozoomzoom]
Nov 11, 2012 (10:22 am)
I responded in another thread, so no need to recreate that tome. But, forgot to say, excellent choice. When we were looking recently, that is what I wanted to get. But it was my wife's car, and she picked the Acura RDX instead.
and that should tell you something, that I wanted the Hyundai over the Acura!
#3023 of 3219 Re: Paying Cash, unsure about trade-in, best way to handle? [igozoomzoom]
Nov 11, 2012 (12:00 pm)
If you have a Carmax nearby, get a quote from them. I have found that they usually offer quite a bit more than most car dealers. They will give you a written quote good for a week or two.
Nov 13, 2012 (2:39 pm)
I have an 07 Civic Hybrid with 89k miles on it. I haven't decided whether to sell private party or trade in. I have read it is better to sell to a Honda dealer as I will fetch a better price? Is this true? When buying I prefer to gather quotes from internet department at local dealers then negotiate with the best offers. When in the process should I tell them I have a trade in? Will my trade in help me get a better deal?
#3026 of 3219 Re: Trade in ? [koctailz]
Nov 15, 2012 (3:18 pm)
In many cases, yes, the dealer of the same make of the car you are trading will usually pay more if its a car they want to keep on their lot.
As for your trade, it really doesn't matter, in my opinion, when you bring it up. The common mantra seems to be to hide the trade till after you've struck a deal on the car you are buying. But that is pointless. Why spend all of that time negotiating on one part only to have it all flushed down the toilet when you find out they don't want to step up on your trade? You are just wasting their and your own time. Work the deal as a whole, as long as you can keep the numbers straight for yourself. Frankly, I think the math impaired are those who need to hide the trade.
As long as you know ahead of time the difference between trade and new that you want to pay, it doesn't matter how they arrive at it. If they want to give you $1k more for your trade and charge you $1k more for the new vehicle, or vice versa, so be it. It doesn't affect the bottom line, and that's all that counts.
#3027 of 3219 Re: Trade in ? [qbrozen]
Nov 15, 2012 (4:46 pm)
thanks for the advice and that does make sense to me to get the value of the trade up front because if they aren't willing to make a decent offer then there is no point in going forward to negotiate on the new car.
#3028 of 3219 Re: Trade in ? [qbrozen]
Nov 16, 2012 (5:30 am)
Great advice. Research is the key. A buyer should determine (1) the price they are willing to pay, (2) the value of the trade they would accept, and (3) the difference between the two. Keep that difference in mind and a good deal will be found, regardless of what tricks the dealer plays. Of course, it is usually good to have the trade valued on the high side as that saves a bit on sales tax.
And, as always, a buyer should just say no to everything presented by the top gun sales person in the dealer's F&I office. A simple thing to remember is the F&I people have convinced themselves the only reason a person will not buy the products they offer is the buyer does not understand the value of those products. As a result the relentless F&I sales pitch complete with props all designed to convince the buyer to buy, buy, buy. To those sales people, the fact the products are vastly overpriced plays little part in a buyer's rejection.