Last post on Nov 20, 2013 at 9:45 AM
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Car Buying, Car Selling
#3042 of 3350 Owe $16k on vehicle; need cheaper wheels; help!
Dec 09, 2012 (5:42 pm)
Since I purchased this car I lost my job and now have a job that pays less. I need to downsize my car. I have a 2009 Lexus RX with 57k miles. Like the title says I still owe 16k on it, payments of $390/mo until mid 2016. The car is at least very reliable and I don't want to give that aspect up, but I realize there are many cheaper brands and vehicles I can buy that are reliable. I've read about trading in cars when you still owe money on them, but I still don't understand if I can come away in a better position than I am currently in. Basically, can I get a cheap new car or reliable used car and come out owing either 1) zero or 2) something minimal like $100/mo? Please explain how the transaction would work like I am a 6 year old.
#3043 of 3350 Re: Owe $16k on vehicle; need cheaper wheels; help! [brokedood]
Dec 09, 2012 (7:10 pm)
well, there are 2 things you could do. 1 is trade it in, and the other is sell it outright and look to buy something new.
There is a real world trade in value thread here, so find that and get a better price idea, but running it through Edmunds appraiser, and assuming AWD and no options, it came out with ~20K trade in, and 22K private sale.
using that, you should have some equity. But, not much. so you could in theory trade it in and cover a minimal DP and tax/fees, but you are still going to end up with a loan, and on anything new, most likely the same amount (though maybe spread out more) but on a much lower level car.
basically, you would owe what you do today, but extend the payments out for another couple of years, but it would lower the payments now.
Option 2, sell it. Private sale, or try a Carmax if you have one. Then take whatever equity you net (4-6K maybe) and buy something basic and used to tide you over. No, you won't be driving a fancy Lexus, but you could get away with no payment (and likely lower insurance).
Really tough to say what you can net and what you can find. May not be as reliable of course.
Another option of course, is cut back elsewhere (or get a part time 2nd job) to have the money to cover the loan.
and the other choice for people with cash flow/DP issues that need reliable trans? Trade or sell, take the equity, and get a not too expensive girl with a killer lease deal. You might get some $ out of the deal, and into a lease for a lot lower price.
#3044 of 3350 Ford fleet pricing
Dec 13, 2012 (6:11 am)
Where I work there is a program setup with a local Ford dealer offering us fleet/commercial pricing along with any incentives and rebates. Is fleet pricing a fixed % below invoice?
#3045 of 3350 Re: Ford fleet pricing [iontrap]
Dec 13, 2012 (7:22 am)
yes. There are often different level plans (X, Y) for different groups (employees, vendors, etc.). But they are set up as a % of invoice.
I have contacts at Subaru, and their VIP pricing IIRC was 2.5% below invoice, plus you get any incentives. And it was set up at corporate, so the dealer was just an order taker in this case.
#3046 of 3350 Trading In For New At Dealership ?
Dec 29, 2012 (4:29 am)
What is my legal/moral responsibility when trading in an older car at Dealership and purchasing a new one there, to tell them of problems with car ?
Do I just say that "you take it as is," or tell them that there is actually a small coolant leak ?
I imagine they will ask, and/or there is some form regarding.
It has 135,000 miles on it, a 2005, excellent condition other than this small leak. Would they just likely scrap it ? Hate to see someone buy it and then find out that the leak gets worse, or... ?
Don't want to give them excuses for really minimizing what they give me for the car, but if it to be scrapped, no reason to tell them. If they will sell it, not sure how best to handle ?
What should I tell them re leak, or not tell them ?
Thoughts on ?
#3047 of 3350 Re: Trading In For New At Dealership ? [bobr14]
Dec 29, 2012 (6:16 am)
If you are asking the question, I guess you're feeling a tinge of guilt. Would you want someone to sell you a car without telling you there is a little coolant leak?
In any case, it's an 8 year old car with 135K. It's going right to auction on the next transporter out. Telling them there is a coolant leak probably isn't going to affect the value by much.
Why not fix the coolant leak and sell it on Craigslist? Is it a hose or is it a head gasket?
#3048 of 3350 Re: Trading In For New At Dealership ? [bobr14]
Dec 29, 2012 (8:48 am)
good question. A lot of people feel that there is a distinction between trading in and private sale. On a private sale, you should disclose something you know to be wrong that is not obvious to see (like say a broken taillight), but that dealers are pros, and it is up to them to inspect the car and offer accordingly. And something like a coolant leak should be readily apparent if they bother to look over the car.
Now, a bad tranny that slips when warm, but you bring the car in cold after parking overnight around the corner? Well, that is bad form!
but in any case, this car is going to be sent straight to auction, and they are going to offer you next to nothing assuming it has problems. So no, I would not tell them about it. If they ask directly no need to lie, but it is an old high mile car, so it is going to have some flaws!
I do agree with Rob that you might want to have it fixed (depending on what it would cost) and sell privately, since depending on what it is, you might do considerably better. And if you don't want to bother, just note in the ad about the leak and let people decide for themselves.
#3049 of 3350 how is this negotiating strategy?
Dec 30, 2012 (5:02 pm)
can you please critique my negotiating strategy?
I'm struggling with the idea of buying a new car b/c my old car still works, but it will probably start needing some work in 2013 (new brakes, etc). So I figure that some dealerships might be wanting to unload their remaining 2012 inventory tomorrow 12/31 at a good price so they can improve their end-of-year sales figures. So I was thinking of sending an email like this:
"I am looking for a 2012 silver or gray [vehicle]. To be perfectly honest, I am hesitant about buying a new car because my current car works perfectly fine, so I will only purchase a new car if I can obtain one at a fire-sale price, and I figured 12/31/12 would be a good day to find a dealer who wants to unload a 2012 model.
My zip code is 12345 for pricing calculations, and I will be paying cash for the car. Can you please provide me with an out the door quote today with your best offer?
I am seeking price quotes from various dealers so please be sure to obtain authorization from your manager if required before quoting a price.
I understand that you may not want to send offers via email to customers, but if you have a car that matches what I want, and you will be able to give me an exact price quote on the phone, then email me your phone number, and I will give you a call."
or would something like this be better for the first paragraph:
"I am looking for a 2012 silver or gray [vehicle]. I am prepared to pay cash TODAY, but I will ONLY purchase a new car if I can obtain one at a fire-sale price, and I figured 12/31/12 would be a good day to find a dealer who wants to unload a 2012 model."
thoughts? thanks for your input
#3050 of 3350 Re: how is this negotiating strategy? [beethovengirl]
Dec 30, 2012 (5:35 pm)
too much extraneous stuff in the first email.
first of all, are you planning to specify a specific car? Or just anything they happen to have? You really need (if you want to have a hope of actually getting a real quote) to have an exact car (or model) in mind.
So, something like " I am willing to buy today a 2013 Accord EX in silver mist, which should have a MSRP of $23,456. I see stock # xyz on your website" "please supply your best price if I take it today, including all fees and taxes for an OTD price"
and if you really want to do it, include your phone number.
#3051 of 3350 Re: how is this negotiating strategy? [stickguy]
Dec 30, 2012 (5:37 pm)
oh, if you really want the best price? Pick the car/dealer you want, and if they have the exact one in stock, go in an hour before they close, and tell them you can take it today if they give you a price you can't refuse.