Fair trade-in value?

cyberray · #1 05-29-2003, 02:55 AM

I was at the dealership working a deal on a new F150 XLT SCrew. pretty much got the price I wanted and all.

then we started working the trade-in value on my trade and I'm thinking they _REALLY_ lowballed me. read the truck specs below, give it some thought, and then see if you agree:

1999 F250 SuperDuty XLT Crewcab 4x2 shortbed Toreador red

PSD 7.3L w/auto tranny, alloy wheels, Husky floormat liners, Power windows/locks/mirrors, cruise, tilt, cd-cassette stereo, tinted windows, stepside bars, regular mirrors, front tow hooks, split-bench front seat, bugshield deflector, towing package (basically everything that goes on an XLT, and then some)

70,460 miles (2/3rd's hi-way miles)

Their appraisal? $13,000

I then called one other place who only deals in these trucks, they offered me $15,200-15,300

We're in Central Texas (Austin), I've seen similar trucks going for over $20,000 dollars. What gives? They want to turn around and make an easy $5,000 profit? Anybody know of a place that will give me top dollar for it?

Nick D. · #2 05-29-2003, 07:28 AM

Yeah Trade in value is a lot less than resale value. Whether they were highway miles or not really doesn't effect dealers. It makes a big difference if you are selling it yourself, but if you looked at a truck on a dealers lot and a salesman smiled and said "hey its mostly highway miles" would you really believe him? Thats what they face. Also if they advertise $20,000 they will probably only get 18 tops because everyone wants to negotiate down so they start high.

Unless the tires are in really good shape they will have to re-tire your truck. Hold out for another grand maybe fifteen tops but that might be about the best you can do.

I was in a really good negotiation last night and came out about 1500 less than I really need to get. If you think you have gone as far as you can trade wise, try for some good deals on extras like camper tops or tonnau covers. Even such things as running boards and liners if they are not already on the truck can be negotiated down substantially if they really want your business. I almost made up the difference in extras that I was going to have to buy somewhere any way.

Then after you make your deal with the salesman make sure they don't get anything back on interest rates. Sometimes, as long as you have kept your credit good, you can negotiate your rates also. Unless you are taking advantage of a manufacturers rate your own bank can probably beat what the dealer can do. It's worth taking a few hours to talk to your banks and see what they will offer. Good luck!

cyberray · #3 05-29-2003, 09:50 AM

except for a cracked windshield, truck is in good shape. it has a few more scrapes and tiny dings than I would like, but otherwise....

yeah, I know they try to chew you down, but come on, anywhere from 3-5000 more than they are going to sell it for? as for any extras, while I can ask for them, and probably get them at this dealership since they treat their customers well, I was more concerned about the overall amount of money I would be financing. and right now, it's 4-5000 more than I care to finance, especially in this economy

bank? that's a 4-letter word. I only deal with credit unions. good thing too since my job requires I inspect them yearly. as for financing, didn't you know EVERYTHING is negotiable at the dealership, including the finance rate? sold cars for about a 3-month period back in '94. lot of long hours standing on the lot.

Bart&Red · #4 06-21-2003, 05:35 PM

Try taking it to CarMax or AutoNation. They're usually between retail and trade-in. They'll even give you their offer on paper and you can take it to your dealer.

cyberray · #5 06-21-2003, 11:39 PM

Carmax or Autonation? don't think we have either in Austin but San Antonio does. do you know if they buy or do they do trade-in only?

02XLT · #6 06-22-2003, 01:07 AM

Yes they will buy your truck without you buying anything from them. I tried to sell them a truck in Houston a few years back and was disgusted with what they had offered. Good Luck!

-Brian

dbarbee · #7 06-22-2003, 07:35 AM

Chances are, the dealer that offered you more for your trade would not have negotiated much on the new purchase. They're going to make thier money whether its on the new purchase, the trade-in, or the financing. Either that or when you showed up to sell it to them in person, they'd start backing off of thier original offer. Either way, they got you on THIER lot looking which is thier goal.

Its fairly common (around here anyway) to see a trade-in put on the lot at $5000 over what the dealership gave for it. Out of that, they have to pay for detailing, tires, repairs, oil changes, body work, etc, and leave room for nogotiation if they're going to resell it themselves. If they take it to the auction, they have to get it low enough so they don't lose money on it.

Additionally, with all the 0% financing going around on new purchases, there's a glut of used vehicles on the market.

I have yet to see a dealer give an actual trade-in allowance that comes close to NADA "average trade value". Its usually closer to Loan Value.

jmb3675 · #8 07-03-2003, 09:49 AM

set a price you will take on your trade in the beginning a little abobe waht you want but dont break your bottom line. i told my dealer no deal if they couldnt give me 14,000 for my 2002 ranger super cab xlt 3.0 at 2wd ranger with 10,000 a line-x liner and tonneau cover. after an hour of haggeling i came down to 13,100 on an a-plan deal. they werent to thrilled but we made a deal.
i saw my truck on the lot a week later with a sign that said was 15,995 reduced to 13,995 next to a 2001 4x4 with 15,000 for 13,500 wonder which will go first lol

Raoul · #9 07-03-2003, 10:02 AM

It's pretty much a fact that dealers make more money on used vehicles than they do on new ones.

Anyone can find out the dealer invoice on a new vehicle and from there you have a starting point to work with.

On used vehicles, it's a battle of wits on Trade-In amount and again on purchase of a used car.

They play the game everyday, the rest of us are recreational at best.

rcmike · #10 07-20-2003, 01:19 AM

3 different dealers today,i got 2002 expedition eddie baer,all options,17,000 miles, spotless truck ,all 3 said about the same thing.trade in value 20,000.I owe about 18,000 still. Only 2 would X plan a lightning.keep story short,monthly payment 625.00 for 60 months,12 % interest cause SVT ARE NOT OFFERED WITH DISC RATES LIKE OTHER FORD VEHICLES.Had to walk away from them ,cant afford that much

May have to settle for the HD truck to have something sporttier than the exp. I knew i should of got the lightning when i was car shopping 18 months ago.ooohhhh welll "" or just wait another 9months or so and try again

GASGUZZLER007 · #11 07-20-2003, 08:21 AM

Carmax is a joke.

"I'am sorry sir, you have a modified exhaust, we cannot accept a vehicle like this"

"You have modified the engine, bringing the value of the vehicle down?

ME: What are you talking about?

THEM: You see, this is a K&N intake that is not factory installed

ME:

01 XLT Sport · #12 07-20-2003, 11:06 AM

I can tell you from my “very limited” experience is it also depends on the size of the dealership. For example when I bought my current truck I looked at two dealers. One dealer had approx. 60 – 100 vehicles on their lot, the other dealer had approx. 200 – 300 vehicles on their lot, so more room to negotiate because since they buy sale more vehicles and buy more they are not spending as much money in over head, and most likely not paying as much for the same vehicle as the smaller dealer.

About 4 years ago I went to both and had a trade-in. I worked the deal first and then brought up the trade-in. In the end it would have cost me about $1,400 more at the smaller dealer, but here is the deal, the smaller dealer would have giving me $3,000 for my trade-in and the larger dealer only $1,200 the difference was the larger dealer had a much better price on the new truck then did the smaller dealer, they had a much higher mark-up and thus could make me “think” I was getting the better deal from them. In the end even if they had allowed $3,000 for my trade I would have still paid about $1,400 more at the smaller dealer even though they were going to “give” me more money for my trade-in.

If you try to negotiate at a different dealer and they do give you say $2,000 more how much will the overall cost of the new truck be? You may find it is about the same, all has to do with how many vehicles the dealer sales and how fast they move them off their lot.

albow · #13 08-12-2003, 06:17 AM

Quote:

Originally posted by rcmike
3 different dealers today,i got 2002 expedition eddie baer,all options,17,000 miles, spotless truck ,all 3 said about the same thing.trade in value 20,000.I owe about 18,000 still. Only 2 would X plan a lightning.keep story short,monthly payment 625.00 for 60 months,12 % interest cause SVT ARE NOT OFFERED WITH DISC RATES LIKE OTHER FORD VEHICLES.Had to walk away from them ,cant afford that much May have to settle for the HD truck to have something sporttier than the exp. I knew i should of got the lightning when i was car shopping 18 months ago.ooohhhh welll "" or just wait another 9months or so and try again

12% interest?!! How bad is your credit? Even if they wanted to claim no incentives on the L, you can still get general rates on financing which should be about 6% or less. Check with your bank, or better yet, your credit union. The cu's will give you a nothing down loan with good credit where the banks won't. I haven't put a penny down on my last 4 or 5 vehicles. You might can even call the dealer's bluff and tell them that you've already checked and can get financing for x percent and they will often match it, although if you can't that might be a problem. Just be sure to check rates in advance. Oh yeah, i just got a letter of credit off the net from people first where they approved me in 10 min. for a nothing down at 3.99% last week, which is now at 4.25% for 37-60 months this week. Bottom line-shop around.