Trading In Tips

[blinkwatt]

I need some assistance on helping a family member trade in their car to a dealership.

Typically what % of kbb trade in value is realistic when trading into a dealership on trade? Say if a car is listed on kbb as $5k trade in,what in an honest guess at one could receive on the $5k value?

Are there any scams to be aware of? Fees that the dealerships may try to throw in?

[jcb986]

First thing is they do not use KBB. They use a dealer's Black Book. This prices are derived from supply and demand at the auction. Like now, a good used small car getting good gas mileage with normal miles on it would fetch a good price whereas a Ford Expedition is a tank you cannot sell. Dealer's love to wheel and deal. Start with the KBB trade in price and they well offer you less. Then it becomes a, Who wears who down first. Good luck.

[Perfectlap]

is a trade in the best price you can get? It's usually the worst. You pay quiet a % for convenience. I guess when times were better and credit was flowing to everyone and his kid sister people didn't want to bother with private party sales. Nowadays people aren't so eager to leave money on the table.

[husker boxster]

Calculate what a reasonable value is for the vehicle you're buying. Then look at the trade-in value of your vehicle. Figure out the difference and then focus on that number when you go to negotiate. A dealer can tell you they're giving you any amt for your trade but the important number is the difference. And don't let them talk to you in terms of the payment amt. You don't know how long you'll be making those low payments and at what interest rate. Save the payment talk for after you've negotiated the amt required to trade.

And I guarantee no matter what you have to trade, they'll tell you the mkt for that vehicle is crap. Of course people are beating their door down for the car you're interested in, so you better move quick.

Block off a big chunk of time to negotiate. It can be a war of attrition. Don't be afraid to stand up and take a step towards the door. They can't sell a car to someone who walks. And if you do walk and they call in a day and ask if you're ready to buy, ask them if they're now ready to accept your offer.

And if they won't deal, forget 'em. My dad said there's always another car around the corner. I've found this to be true about women, too.

[Topless]

Tip: If the real KBB trade in value is $5k and the car is really clean it will probably sell in 1 week pp for $6500 cash through Craigslist.

[Quickurt]

Originally Posted by Topless

Tip: If the real KBB trade in value is $5k and the car is really clean it will probably sell in 1 week pp for $6500 cash through Craigslist.

Bingo!!
$5k cash down beats a $5k trade value any day of the week, twice on weekends and three times the last weekend of the month!
See if that salesman can convince you your cash is in less demand than the car he's trying to sell you!

[thstone]

To answer your question directly, one rule of thumb is to recognize that the dealer is going to have to clean, repair, and advertise your car for re-sale and he needs to make a $1,000 profit on it when he's done. Thus, expect a dealer to charge $1,500-$3,000 on cars less than $15,000.