Trading in a vehicle

[flutterby]

I'll be doing this soon, and I'm not sure how to go about it. I know it's usually better (or at least more money) to sell a vehicle outright on Craigslist or whatever. But then you need a spare vehicle until you can buy a new one. If I sell mine by private party I don't have another car to get me by, so I think I'll need to trade it in at the dealership.

My question is: can I trade in a vehicle at a dealership and buy a new-to-me car at the same dealership that costs less than my trade in? Will I get completely ripped off on my trade in value by doing this? Do dealerships even do this? Do they give me a check for the difference? I don't know how this works, so any help is greatly appreciated.

[Gardening Grandma]

Why don't you buy the new-to-you car first from the dealer and then sell your old car on CL?

If you trade your old car in, the dealer will make money off the trade in as well as the new-to-you car.

If you have reason to believe that you won't be able to sell your old car, that might be a reason to trade it in, but  I'd sure try to sell it myself.

[flutterby]

I don't think I'd have too hard a time selling my current vehicle on CL, but then you never know. I wanted to use the profits from it (about $22,000-$25,000) to buy a $15,000-ish car outright with no loans, which I'm not sure I could get anyway. I don't have enough in my EF to float a car while I wait for my current one to sell. I have a Roth I could pull from, but that's only in case of absolute desperation, and this doesn't qualify. I've never traded in a vehicle for more than the price of the new vehicle I was buying, so I'm not even sure dealerships do it.

[toomuchreality]

I'm pretty sure they can do it, if they want to do it. But you're not going to get anywhere near the amount for it, that you would selling it yourself. The dealership will need motivation to do this, so the amount they pay you will be very little, but they'll tell you what a great deal they're giving you.
If you are really willing to let your current car go for a bargain/discount price, (the amount the dealership will really give you for your trade in), I think you can be almost 100% guaranteed it will sell (right away) privately. -Selling it to a private person for the way cheap price, instead of the dealership.

I had a car salesman go on and on about the great deal they would give me on my trade in. When it came right down to it, the salesman recommended I sell it myself. I told him I would sell it that weekend, and be back Monday to pick up my new car. I'm sure he didn't believe me, but that's exactly what happened.

Could you use your current car to go find the kind of car you want, and see what's available, for how much, and where. Then sell your car privately, and "rent a wreck" or something for a day or two while you work out the final details? I think that's what I would do.

But maybe you just don't want to have to deal with listing your car and selling it. I understand feeling that way too. That's how I felt with the last car I sold. It finally sold by word of mouth. (whew!)

Good luck with whatever you decide to do. I hope it all goes smoothly and quickly for you!

Zoom - zoom

[Deleted]

go to carmax and have them tell you what they will buy your car for.  it's good for 3 days/300 miles (or something like that).  they look around at carmax for what you want to buy.  Is your current car lien free?

[flutterby]

Thanks for the CarMax suggestion, I'll check them out. Yes, the vehicle is paid off.

[constanz22]

I was gonna suggest Carmax too, but you still probably won't get the best price because they need to make money when they sell it.  As a single female, I always trade my car.  Selling privately is not something I'd be comfortable doing.  And I think people overestimate how "easy" it is to sell on Craigslist, etc.  I think cars under $4,000 sell in a heartbeat, but a car over 20k.  Eh, not sure it'd be an easy sell.  If I was spending that kind of money on a car, I would never buy it from a private party with no warranty, etc.  

Heck, I've been trying to sell a camper on Craigslist for a year now and it is under 10k and I can't get it sold.

[muttleynfelix]

I've traded a vehicle in and I've sold private party. I completely prefer trading in the vehicle. Selling the vehicle private party took over 6 months. I had numerous people look at it, people blow me off, strangers calling me. I wish I had just traded it in.  The vehicle I traded in, I felt like I got a good deal on it. Part of it was they were in the make a deal to get the vehicle we were buying off the lot. I know they say you negotiate the price of the new car first and then the trade in.  Honestly it didn't matter to me. The only thing that mattered was the difference in price of the two vehicles and I got that in the range I was comfortable in.  We price of the new to us car was $5k below KBB and the trade in value was at the top of the KBB "trade-in-value".  I don't think we could have done better buying and selling private party and it would have been a much bigger PITA. (We've had that vehicle for 3 years and have had no problems with it at all, we are very very happy with our new to us car).

I'm with Constanz, I'm trying to sell a tractor on Craigslist and it has been over a year and we haven't had a single offer. As soon as I post it, it is 20 items from the top and by the end of the day it is off the first page.   It stinks.

[Gardening Grandma]

After buying a new car, I just sold our old one on CL. First DH, detailed it inside and out. Then he got out his maintenance records. I took really good photos of it. Before listing, I carefully wrote up a description - following these suggestions.
www.fiscalfizzle.com/tips-car-craigslist/

www.edmunds.com/sell-car/sell-your-car-safely.html

I priced it carefully; several dealers were listing the same model/year for $6000. Edmunds and KBB had high $4000 to low $5000 for perfect condition. I asked $4800.

6 days later, I sold it for cash - I did come down $400 from my asking price, but got twice what a dealer would have given me for it. Yes, it is more work than trading in, but I figure my efforts earned me about $2K.

[constanz22]

I was really happy with the last 2 vehicles I've traded.  I bought a 2012 Nissan Rogue this summer, paid 19k, and kbb was around 24k, traded in a 2006 Toyota Matrix and got exactly what I wanted, $6500 I think, which was right in the middle range kbb gave for a trade.  It was a great little car, sometimes I wish I'd kept it, but I still felt it was a good deal and fair trade.

[constanz22]

Sept 4, 2013 9:25:35 GMT -5 Gardening Grandma said:

After buying a new car, I just sold our old one on CL. First DH, detailed it inside and out. Then he got out his maintenance records. I took really good photos of it. Before listing, I carefully wrote up a description - following these suggestions.
www.fiscalfizzle.com/tips-car-craigslist/

www.edmunds.com/sell-car/sell-your-car-safely.html

I priced it carefully; several dealers were listing the same model/year for $6000. Edmunds and KBB had high $4000 to low $5000 for perfect condition. I asked $4800.

6 days later, I sold it for cash - I did come down $400 from my asking price, but got twice what a dealer would have given me for it. Yes, it is more work than trading in, but I figure my efforts earned me about $2K.

And again, you are talking about selling a car under 5k.  They sell pretty much instantly on FB selling sites I'm on as well as Craigslist.  BIG difference trying to sell a 22k car privately, which is what OP is wanting to do...

[Deleted]

I think what's difficult about the OP's scenario, is that she is expecting the dealer to give her the difference between what her old vehicle is worth and the new one.

I have a hard time believing a dealer is going to cut her a check for the difference instead of just offering her the price of the new car as the trade-in value. 

[Gardening Grandma]

Sept 4, 2013 9:29:47 GMT -5 @beerwench said:

I think what's difficult about the OP's scenario, is that she is expecting the dealer to give her the difference between what her old vehicle is worth and the new one.

I have a hard time believing a dealer is going to cut her a check for the difference instead of just offering her the price of the new car as the trade-in value. 

More likely, the dealer is going to point out everything that is wrong with the OP's car and give all kinds of reasons why it's trade in value is not what the OP thinks.   

Trading in is the easiest but it is the most expensive way to get rid of the old car.

[flutterby]

Sept 4, 2013 9:33:16 GMT -5 Gardening Grandma said:

Sept 4, 2013 9:29:47 GMT -5 @beerwench said:

I think what's difficult about the OP's scenario, is that she is expecting the dealer to give her the difference between what her old vehicle is worth and the new one.

I have a hard time believing a dealer is going to cut her a check for the difference instead of just offering her the price of the new car as the trade-in value. 

More likely, the dealer is going to point out everything that is wrong with the OP's car and give all kinds of reasons why it's trade in value is not what the OP thinks.   

Trading in is the easiest but it is the most expensive way to get rid of the old car.

This is exactly what I worry about. I've checked KBB and also looked at CL for similar vehicles' asking prices, so I know, pretty close anyway, what mine is worth. I also know about what the vehicle I want should cost. And I don't have so much money that I can afford to just give up the difference by trading it in. It looks like selling private party and then renting a car until I buy a new one might be the only good option. I was hoping to avoid that hassle, though.

[constanz22]

Sept 4, 2013 10:03:53 GMT -5 flutterby said:

Sept 4, 2013 9:33:16 GMT -5 Gardening Grandma said:

More likely, the dealer is going to point out everything that is wrong with the OP's car and give all kinds of reasons why it's trade in value is not what the OP thinks.   

Trading in is the easiest but it is the most expensive way to get rid of the old car.

This is exactly what I worry about. I've checked KBB and also looked at CL for similar vehicles' asking prices, so I know, pretty close anyway, what mine is worth. I also know about what the vehicle I want should cost. And I don't have so much money that I can afford to just give up the difference by trading it in. It looks like selling private party and then renting a car until I buy a new one might be the only good option. I was hoping to avoid that hassle, though.

Why don't you take it in to a couple dealers that have the car you're interested in buying and see what they have to say?  You don't know if you don't ask.  I'd at least try that before going through the hassle of selling privately, unless you have a really in demand vehicle.

[flutterby]

Constanz, you're right, and I absolutely will. I was just wondering if dealerships even did the higher trade-in value/lower purchase.

[Deleted]

Sept 4, 2013 9:29:47 GMT -5 @beerwench said:

I think what's difficult about the OP's scenario, is that she is expecting the dealer to give her the difference between what her old vehicle is worth and the new one.

I have a hard time believing a dealer is going to cut her a check for the difference instead of just offering her the price of the new car as the trade-in value. 

that's why you sell it to Carmax as an individual transaction.  then you buy wherever you want.  Dealer wanted to give me $500 for my minivan, Carmax gave me $3300.  There is no way that I would list my car on craigslist or autotrader or anything to sell private party.  I was a single mom with 3 young kids - was not going to have people coming to my house to look at a car.

[Gardening Grandma]

Sept 4, 2013 10:27:49 GMT -5 @singlemominmd said:

Sept 4, 2013 9:29:47 GMT -5 @beerwench said:

I think what's difficult about the OP's scenario, is that she is expecting the dealer to give her the difference between what her old vehicle is worth and the new one.

I have a hard time believing a dealer is going to cut her a check for the difference instead of just offering her the price of the new car as the trade-in value. 

that's why you sell it to Carmax as an individual transaction.  then you buy wherever you want.  Dealer wanted to give me $500 for my minivan, Carmax gave me $3300.  There is no way that I would list my car on craigslist or autotrader or anything to sell private party.  I was a single mom with 3 young kids - was not going to have people coming to my house to look at a car.

I would, at least, get a Carmax value before going to talk to a dealer.  When you go "talk" to a dealer, remember they are expert sellers.  You may well end up buying something you had not planned on.

PS
No one came to my house to look at my car.  I met them in a public place.  Before letting him test drive my car, I asked to see a driver's license and snapped a photo with my iphone.  Then I asked for the keys to his (very nice) truck while he drove my car.  

[Deleted]

Sept 4, 2013 8:02:07 GMT -5 constanz22 said:

I was gonna suggest Carmax too, but you still probably won't get the best price because they need to make money when they sell it.  As a single female, I always trade my car.  Selling privately is not something I'd be comfortable doing.  And I think people overestimate how "easy" it is to sell on Craigslist, etc.  I think cars under $4,000 sell in a heartbeat, but a car over 20k.  Eh, not sure it'd be an easy sell.  If I was spending that kind of money on a car, I would never buy it from a private party with no warranty, etc.  

Heck, I've been trying to sell a camper on Craigslist for a year now and it is under 10k and I can't get it sold.

We have always sold our cars private party, but I have the same feeling about CL.  At a certain price point it is really easy to sell a car.  I think you are above that point.  DH sold 3 cars and a travel trailer in the last 2 months, using a mix of ebay, CL, and the local lot.  They all went within a couple of days, but none of them were more than 7K. 

[alabamagal]

There is a dealer here who has a sign saying they will take a trade-in even if you don't buy a car from them.  But they probably won't give you a good price.  I am sure there are plenty of places that do that.  Carmax is probably the best known.

Selling a car on Craig's List/local ads probably works better for a lower priced car, something that most can pay cash for.  For a $20k plus car, may be a little more difficult.

Do you have a friend or someone that you can borrow a car for a day or so, in case you buy/sell at a different time?  This may help with the logistics if you sell/buy at a different place.  With all the cars I have bought over the last 25 years, I have always been able to drive off the lot with the car I bought, even back in the day when I was young and poor, and the financing took several days to get approval (pre-internet).

[973beachbum]

Sept 4, 2013 10:24:49 GMT -5 flutterby said:

Constanz, you're right, and I absolutely will. I was just wondering if dealerships even did the higher trade-in value/lower purchase.

The short answer is yes they do although not very often.

It happened much more often at the junk yard I worked at than the new car dealership, but I do remember at least 1 there also.  That is the good news.  The bad news is it didn't happen instantly.  I want to say it took the same amounut of time to cut the check as it did to get the title and tag paperwork done, so maybe 3 weeks.  The dealership wanted to make sure the deal wasn't going to go south and have to be unwound or anything. 

As long as the dealer is reputible it isn't really a big deal.  I know people here will freak about their check not being paid when the deal is done, but the big risk is that the dealer will take your money and your trade, and not pay off your trade ins loan.

[flutterby]

and not pay off your trade ins loan.

Can they actually do that? That never even occurred to me as something to worry about. Until now. Thanks! 

So I looked up CarMax. I have to actually take it in and have them drive it, so I'll try to do that this week. Their quotes are good for 7 days. I'm not selling for a few weeks yet, but at least it'll give me an idea.

No, I don't have a car I can borrow. Boy that would make it easier! But I could rent one if I had to. That means selling private party, though, and I'm still hoping to avoid that.

[973beachbum]

Sept 4, 2013 12:09:31 GMT -5 flutterby said:

and not pay off your trade ins loan.

Can they actually do that? That never even occurred to me as something to worry about. Until now. Thanks! 

So I looked up CarMax. I have to actually take it in and have them drive it, so I'll try to do that this week. Their quotes are good for 7 days. I'm not selling for a few weeks yet, but at least it'll give me an idea.

No, I don't have a car I can borrow. Boy that would make it easier! But I could rent one if I had to. That means selling private party, though, and I'm still hoping to avoid that.

Well it is illegal but that doesn't mean it never happens.   Just Google "dealer didn't pay off traded in vehicles" and see what pops up. Here is a taste.
www.negativeequityauto.com/Car-Dealers-Fail-to-Pay-Off-Trade-Ins.php

It doesn't happen often though, and it always is an end of life for the dealship type thing, so it can't go on for very long before everyone is screaming for blood. Most car dealers are very honest people but bad things do happen. I was just trying to make the point, clearly very badly , that it is the check for a few thousand for the trade in that would scare most people, and not the $25000 car they are handing over and trusting the dealer to pay the loan on.

[movingforward]

Carmax actually quoted me $500 over KBB the last time I bought a new car.  I was able to take their quote to another dealership and they matched it.  As constanz said, I don't feel comfortable selling a car on CL.