how much are you guys getting for your trade in
I dont know about trading in a car with this bad economy right now might not be the smarteset move but then again MOST dealers PREFER to have a lot full of USED cars rather then new because salesmen make more money off used any day of the week. SO like stated above its there job to low ball you so he can turn around fix whatever issues then resale for a higher amount. AS you should know most banks give you WAY BETTER APR(loan) on a used car then new unless you get a promotion or something. DO yourself a favor and sell it outright might take alittle longer but as least you will not raped as bad
Somtimes its had to evaluate exactly what a dealer is giving someone for a trade in because you also working on the price of the new car. So sometime they give you a great trade in value but the price of the car you negotiating isn't that great. I think dealer like to negotiate trade in because they are eseentially negotiating both end of the deal and can confuse people with the math.
I think dealers make more money on used cars in general but they can lose money on particular car as well if they over estimate its value. The one thing dealers love about used cars is the public doesn't know what they paid for the car like everyone does now a days with new cars.
I think dealers make more money on used cars in general but they can lose money on particular car as well if they over estimate its value. The one thing dealers love about used cars is the public doesn't know what they paid for the car like everyone does now a days with new cars.
A dealer is going to try to make atleast $3-4k on any car they sell. They do have to pay their overhead and deal with any mechanical issues that might come up. I know tons of people who trade their car in because it has a problem.
. By the way my car is in excellent condition, 25k miles, stock. The guys said we can only offer kelly blue book - fair value. If i wanted to sell it on autotrader, i'd get at least 24k.
I dont know about trading in a car with this bad economy right now might not be the smarteset move but then again MOST dealers PREFER to have a lot full of USED cars rather then new because salesmen make more money off used any day of the week. SO like stated above its there job to low ball you so he can turn around fix whatever issues then resale for a higher amount. AS you should know most banks give you WAY BETTER APR(loan) on a used car then new unless you get a promotion or something. DO yourself a favor and sell it outright might take alittle longer but as least you will not raped as bad
Uh, rates on used cars are traditionally higher than new cars save for promotional rates (Like BMW's CPO rates).
yes, new cars will have lower apr's. Banks don't like financing used cars. Has something to do with credit. Say someone with a credit score of 560 can't get approved for a used car, they have to buy new. So if you can't pay bills, the bank has a newer car, then say a used 03.
There are alot of variables to a selling/buying process. Know this, the only number you can really move on is the trade in and a used car. You will not get "great deals" on new. No dealership will sell their new cars under invoice. Remember, invoice and msrp are different. You can even ask a dealer for their invoice paper, though they don't have to show you. It's just good to know how much their mark up is.
If you do find a great deal on a new car, you can be sure another dealership will beat that dealerships price...only by a few hundred dollars though.
If anyone has any questions about buying or trading their car in, just ask me. I guarentee I know as much or more then an average car salesmen.
There are alot of variables to a selling/buying process. Know this, the only number you can really move on is the trade in and a used car. You will not get "great deals" on new. No dealership will sell their new cars under invoice. Remember, invoice and msrp are different. You can even ask a dealer for their invoice paper, though they don't have to show you. It's just good to know how much their mark up is.
If you do find a great deal on a new car, you can be sure another dealership will beat that dealerships price...only by a few hundred dollars though.
If anyone has any questions about buying or trading their car in, just ask me. I guarentee I know as much or more then an average car salesmen.
Evolving Member
Joined: Jun 2008
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From: Misery
The local stealership called and offered me 15k for my 03 GSR with 70k on the clock. Turns out they were just trying to get me into a new MR. At least they were polite when they asked if they could f**k me in the ***.
Thats what KBB is sayin about your car too...well 14k for excellent condition, and 12k for fair. All dealerships put trade in's in the fair condition catagory. With alittle negotiating you can get it into the excellent. Don't expect more then 16k though from the dealership.
Be Prepared
Even if you deflect the sleaziest sales schemes dealers dish out, you can’t get a good deal without some homework. Don’t step into a showroom without reliability, safety, and pricing information (try Edmunds.com). You should know the mark-up of the car’s sticker price and how much the dealer expects to profit. It makes it almost impossible for the dealers to bluff when you already see their cards.
Call First
Auto makers and dealers do everything in their power to make car buying an emotional experience. They have you sit in plush new leather, soak up new car smell, and punch the gas and hug the turns on the test drive. The salesmen hope, by the time you talk price, you want the car so badly you’ll okay the first number thrown at you. But, ask for the dealer’s best price over the phone, you axe their edge. Lucky enough to snag a telephone quote? It will almost always beat a quote from the showroom. But be warned: Good dealers will smooth talk you into making an “appointment” at the dealership without giving a price.
Hide Your Trade
If you plan to trade in your existing vehicle, don’t let the dealership know it until you have agreed on the price of the new car. Tell them you definitely don’t have a trade-in and then act like you changed your mind. The reason? Dealers use their profit margin on the new car price to make it seem like they are paying thousands of dollars more for your trade-in. Only when you handle the new car and the trade-in separately can you get good deals on both.
Talk Price, Not Payment
“Payment” is a car salesman’s favorite word—and not just when it refers to his commission check. Dealerships love to quote cars in terms of the monthly payment, leaving the purchase price out of the equation until the papers are signed. In the negotiation process dealers try to lower the monthly payment by extending the loan term rather than cutting the purchase price.
Be Patient
Negotiations are tests of will-power. Who will cave first? Dealerships make you wait to get you dreaming about your new wheels. Why not bite back? Car salesmen’s commissions are based on volume. They want to sell lots of cars fast. And unless you’re shopping for a rare model, there will be plenty of cars left tomorrow, but with every day that goes by the dealer will grow anxious wondering whether you changed your mind or found a better deal. Use time in your favor to get dealers to provide even more price concessions.
Go Rate Shopping
You wouldn’t negotiate with car salesmen without the car’s average price; you shouldn’t negotiate an auto loan without information, either. If you can, get your credit report before buying a car. Apply for an auto loan online or from your local bank or credit union and take the approval with you to the dealership. You may get an even better rate from the dealer. Worried about too many credit applications? True, multiple credit inquiries can negatively affect your credit score. The good news? Credit bureaus now count multiple inquiries within a month as one.
I have a better write up with better detail if anyone needs it.
Even if you deflect the sleaziest sales schemes dealers dish out, you can’t get a good deal without some homework. Don’t step into a showroom without reliability, safety, and pricing information (try Edmunds.com). You should know the mark-up of the car’s sticker price and how much the dealer expects to profit. It makes it almost impossible for the dealers to bluff when you already see their cards.
Call First
Auto makers and dealers do everything in their power to make car buying an emotional experience. They have you sit in plush new leather, soak up new car smell, and punch the gas and hug the turns on the test drive. The salesmen hope, by the time you talk price, you want the car so badly you’ll okay the first number thrown at you. But, ask for the dealer’s best price over the phone, you axe their edge. Lucky enough to snag a telephone quote? It will almost always beat a quote from the showroom. But be warned: Good dealers will smooth talk you into making an “appointment” at the dealership without giving a price.
Hide Your Trade
If you plan to trade in your existing vehicle, don’t let the dealership know it until you have agreed on the price of the new car. Tell them you definitely don’t have a trade-in and then act like you changed your mind. The reason? Dealers use their profit margin on the new car price to make it seem like they are paying thousands of dollars more for your trade-in. Only when you handle the new car and the trade-in separately can you get good deals on both.
Talk Price, Not Payment
“Payment” is a car salesman’s favorite word—and not just when it refers to his commission check. Dealerships love to quote cars in terms of the monthly payment, leaving the purchase price out of the equation until the papers are signed. In the negotiation process dealers try to lower the monthly payment by extending the loan term rather than cutting the purchase price.
Be Patient
Negotiations are tests of will-power. Who will cave first? Dealerships make you wait to get you dreaming about your new wheels. Why not bite back? Car salesmen’s commissions are based on volume. They want to sell lots of cars fast. And unless you’re shopping for a rare model, there will be plenty of cars left tomorrow, but with every day that goes by the dealer will grow anxious wondering whether you changed your mind or found a better deal. Use time in your favor to get dealers to provide even more price concessions.
Go Rate Shopping
You wouldn’t negotiate with car salesmen without the car’s average price; you shouldn’t negotiate an auto loan without information, either. If you can, get your credit report before buying a car. Apply for an auto loan online or from your local bank or credit union and take the approval with you to the dealership. You may get an even better rate from the dealer. Worried about too many credit applications? True, multiple credit inquiries can negatively affect your credit score. The good news? Credit bureaus now count multiple inquiries within a month as one.
I have a better write up with better detail if anyone needs it.
Mike
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