. sorry to sound so green, but I am.
I've never bought new before, with a trade in. I've sold before and know the customer gets it stuck in their tail pipe when they opt to trade.

here's my scenerio;

I'm trading my '05 Dodge CTD Quad 4x4 w/ 32k, excellent condition not counting a ball ding in the hood.

I'm pricing an '06 SD Crew PSD;

Here's the last word I received before telling the sales rep that his Mgr is smoking crack.

"The MSRP for this truck is $48,735. As long as it is still available we are asking $44,422 with a trade allowance of $16,000. Between the two were looking at $28, 422 plus taxes and fees. "

This is in regards to a 350 PSD.

I owe 28k on my truck, so the end result is me still paying ~40k, he didn't mention anything about the 3k rebates or where they fit in.
Considering the final price at 40k, taking off the 3500 in rebates, I'm down to 34,500. Does that make since and is that a good deal.

disclaimer: I have an X-Plan number I didn't tell him about, how would that affect price, how do you work that into the deal, I understand the price is set, but sounds like it may not be good thing if you have trade-in?

Guidance would be appreciated,

Thanks

 

I know it sucks but two things are not in your favor right now. One is that your trade in is a Dodge which has absolutely horrible resale/trade in value no matter how good the condition is (not that Ford is much better for that matter) between "employee pricing" and the gazillion dollars in rebates that most manufacturers are offering it REALLY hurts the trade in value. Number two is that you are trying to offload a vehicle that gets terrible gas mileage in a climate where most buyers are looking for economical vehicles to either supplement their gas guzzler or do what your doing and trading in their bigger vehicle. Therefore the "want" for these vehicles are low and hence lower the value. It's been said before and will be said a million more times I'm sure, cars and trucks are not investments they depreciate much faster than you can pay them off, and since yours in an 05 it's no wonder that your so upside down. Good luck though I hope your able to get what you want.

 

Always negotiate the price of the new vehicle by telling them you have no trade in. Finish it up and get it in writing.

Then tell them you've changed your mind and would like to trade in on your vehicle. Ideally have the value already researched. Now negotiate the price of the trade in and don't let them touch the number you've agreed upon for the new vehicle.

If you can't reach an agreement on the trade take it to a place like http://www.carmax.com/ if you have one in your area and sell to them.

Never begin a negotiation with "I want to buy this and trade in that" you'll spend hours trying to figure out where you are getting bent over...and you are getting bent over.

Good luck

 

Why wouldn't you tell him you have X paln?? X plan pricing is based on the MSRP not on the settled sale price. They (Ford dealership) have to sell you the vehicle for the percentage off MSRP. Rebates are stackable on top of your X plan discount.

You will take it up the poop shoot every time you trade in a vehicle. This should not be a surprise. It would be even worse for you since this is a late model Dodge Ram. Your are going to have to factor in negetive equity to be carried over to you Ford deal. Unless you come up with a crap load of money to put down to cover the negetive equity you are simply wasting your money jumping into a new vehicle so soon. Unless you can sell it your self.

I'm just telling you as a friend.

 

Go to the Kelly Blue book online and book out your truck and check out the wholesale trade in price. That will put you in the ball park. But also realize that that actual trade in value could be back of book. You can also check Ebay for completed auctions and see what they sold for. You need to establish the true worth of your truck. It most cases you are better off selling rather than trading.

You can also call some Dodge dealers and ask for the used Manager and see what they offer. If you know any dealers have them run the truck through a big dealer auction. Don’t worry you can set a reserve and it should not cost you more than $200 in fees if it doesn’t sell. Many times they will pay more at an auction than if you call them up. I had one Camaro and I call a dealer and offer it to him for like $5,100 he blows me off and then a week later he pays $6,300 for my car at the auction!

Either way visit several dealerships before you buy and find who will give you the best deal on a new vehicle. Don’t do any deal until you have fully considered it. And don’t fall for their high pressure B.S.!!! “If I offer you this deal it’s only good for today” Just tell them you need to think about it and you’ll get back to them. Don’t give them your phone number or you’ll have these losers calling you for months!

 

What vader said is spot on.
Read a cool book on buying cars a few years back. First thing the guy said was that the salesmen do it for a living and we can never really beat them at the game but his very first and most important point was what vader said - establish the price of the new car first and then afterwards deal with a trade in price.

Also remember this - and they will always try to turn this around - is that you are the guy with the money. You can go somewhere else and buy a truck JUST like that one, but they have a limited number of customers walking thru that door. You don't have to be a sh-t about it but you don't have to get strung along either. You can always come back later or go someplace else.

Set up your loan with a bank or Credit Union BEFORE you go to the dealer. It will save you at least 0.5% intrest if not 2-3%. Most dealers make a lot of money off selling your loan to banks. If you have decent credit, the bank would love to work it this way.

Settle on a price on the vehicle before you talk about ANY payments. This doesn't really apply if you did the stuff above.

When the salesman leaves to get "approval" for the price you just agreed to - if he stays long, pull out a paper and start looking at other dealers adds or just leave his office and start wandering around. You are telling him that you might lose interest in the sale.

That book was a blast from the prespective of playing "emotional games". I think the book mentioned about 10 diffenent ways a dealer will "mess" with you and it only took a visit to 3 dealers before we had 8 of those tactics pulled on us. I wish I could remember the name of the book.

Have fun

 

You are saying that you owe $28,000 on the truck, but they are only willing to give you $16,000 for it.

You are digging yourself a hole if you take that and roll it into another loan.

 

Add another $10,000 to that, after six months, for the depreciation of the new Truck. Not good.

 

DO NOT trade in your Dodge.

Get the best price you can on the Ford, and then sell you truck privately, or sell it to Carmax.

Either way, you are going to have to come up with the difference in what you sell it for vs. what you owe.........but you will end up with a much smaller number this way. Smaller than the 12k your looking at now, by trading.

How you come up with the difference is up to you, but there are lot's of ways to get zero or very low finance charges, if your credit is any good at all.

 

Holy Cow.....
Thanks for all the replies and info,
all of you are right on, of course I'm not gonna trade in the Dodge. Playing around with the thought of selling it out-right.
KBB puts it at ~29k, dealer sell at 35k.
Calling CarMax never occurred to me.

Appreciate the info,

 

Unless you are trading something that is paid off and seen better days then you are going to lose your shirt with negative equity. Best bet is to try to sell it outright or keep driving it. X-Plan is a percentage below invoice plus the current rebates and you don't pay all the fees for dealer prep, notary fee,etc. You still have to pay TT&L and for any add-ons such as bedliners etc. I was looking at King Ranch Super Dutys PSD in July. They were marked down to 42k from 52k. A dealer in town has an 06 Harley Davidson Super Duty, but it is Silver. If I did nt have a Jeep Wrangler I was upside down on like everyone else who is currently paying for anything besides a Toyota Piruis, I might go buy it. besides having 14-15k left on a Wrangler is easier than buying a $42-45k truck.