Last post on Nov 20, 2013 at 9:45 AM
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Car Buying, Car Selling
#3023 of 3350 Re: Paying Cash, unsure about trade-in, best way to handle? [igozoomzoom]
Nov 11, 2012 (11:00 am)
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 (1:39 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 3350 Re: Trade in ? [koctailz]
Nov 15, 2012 (2:18 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 3350 Re: Trade in ? [qbrozen]
Nov 15, 2012 (3:46 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 3350 Re: Trade in ? [qbrozen]
Nov 16, 2012 (4:30 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.
#3029 of 3350 Re: Trade in ? [billy3554]
by MrShift@Edmunds HOST
Nov 16, 2012 (8:41 am)
Also great advice. Any sales presentation which is appealing to your emotions rather than your reason (aka "fear", worry, doubt, greed, status, etc) is to be viewed with suspicion.
#3030 of 3350 Re: Trade in ? [billy3554]
Nov 16, 2012 (10:55 am)
I cringe when I see people on these forums who paid $1500 for GAP coverage. I am an insurance agent and it is literally less than 5% of that amount to add it to your insurance policy. I think some people are so beat down by the buying experience by the time they get to the F&I sales pitch they just give in. I have only bought two new cars in my life. One I financed and got the whole sales pitch. The other I paid cash and never saw the F&I room. I was amazed they didn't try to sell me all that fluff. They handed me the keys and I was like...that's it?
As far as sales tax I believe in CA the sales tax is based upon price paid regardless of trade in. Argh.
#3031 of 3350 Hurricane Sandy victim?
by Stever@Edmunds HOST
Nov 19, 2012 (4:45 am)
A reporter would like to speak to Sandy victims who lost a car in the storm and are trying to replace it. If this fits your description, please send your daytime contact info to predmunds.com no later than Tuesday, November 20, 2012 at 9 a.m. PT/noon ET.
#3032 of 3350 Re: Trade in ? [billy3554]
Nov 19, 2012 (6:28 am)
Of course, it is usually good to have the trade valued on the high side as that saves a bit on sales tax.
Well, not to pick nits, but just to be clear, as long as the difference is the same, the tax will be the same. So if I pay $20k for the new car and get $5k for my trade, I'll pay tax on $15k. If they only value my trade at $3k but I pay $18k for the new car, I still pay tax on $15k. This is in NJ. I'm not sure about other states.