Vehicle financing / trade in question

[browntown3]

Hi, my question is what do you think a dealer would do for me when i try to trade in my 01 sequoia in on another truck? The thing in question is i owe about what its worth on trade in? so what would they do ? This is the first car ive financed so i dont know alot about it. Do you think they would just pay off the loan even or would i have to pay more on it ? the blue book is about 12k, and thats about what i owe on it? Any help or advice would be greatly appreciated.

[maverick_415]

Does this BB for $12k wholesale? The dealer will give you less than wholesale but they can get creative. If you buy a new vehicle you need to talk them down on the price enough to cover the loss on your trade in. Let's say they offer you $10k for the trade but you owe $12k. Tell them you will give them $2k + $300 over invoice on the new vehicle. On their books it looks like they just made $2300 so the sales mananger would most likely be happy with that deal. If they don't want to do this deal than go to the next dealer and try it again. Some dealers focus on unit sales and some focus on margin. Find one that focuses on unit sales becausee they just want to turn over more vehicles and are more likely to make a good deal. I hope this helps you.

[tundra462]

i agree with maverick. my friends at the dealership say the same thing ..

[ohio4runner4x4]

Sell it outright. Period. The stealership will screw you....cuz that's what they do.
I dropped by a GM dealership last weekend cuz I was bored and they were having a "huge sale". Anyway, the only thing on the lot that I could act like I was interested in was an 02 Avalanche w/70k and a sticker of $25,199.
The deal they layed on the table was $21k for the Avalanche and offered me $8k for my 01 Sequoia w/120k.
From this point...things went downhill fast. I asked them to explain to me how my 1 year older Sequoia was worth $13k LESS than their Avalanche....blah,blah,blah and I left PO'd.....
God I hate car dealers.....No wonder GM is hurting.

[xedge]

KBB, NADA etc. are guides. The best advice even given to me was negotiate the price of the vehicle you are interested in FIRST.

Don't talk trade, Don't talk payment. Its easy to get lost in what I call, smoke and mirrors, such as "what do you want your payment to be?" or "what do you want for your trade?". Innocent questions that can lead very quickly down a slippery sloped deal and not in your favor. Yes, a dealer will gladly send your bank $12k to cover your old loan, but do not make this the focus of the deal. Get an idea of what your vehicle is worth at an auction or what private party deals are going for. That is real world figures.

Today's technology makes it very easy to get car or truck prices. You see em here on TS all the time in the dealer/pricing topic. If you prefer face to face negotiation be prepared prior to going in there. In the back of your mind you are considering trading, know the lowest you'll accept for your existing car. (Back to that real world idea). Have your financing in order via a credit union, favorite bank, e-loan whatever . This gives you an advantage knowing what you qualify for & can afford (your credit score matches you with a Tier or incentive category). Not everybody get zero percent financing even though its advertised.


I guess what I am trying to say, is keep every element of the sale as seperate as can be and have fun. Personally, I never trade (as suggested prior) and have my money & vehicle picked out prior to stepping foot in a dealers door. The unit sales suggestion is a good tip too. It is an exciting, pleasant experience and is win-win if you do your homework. Good luck with you purchase

[Desert Toy]

There is one other factor, in some states, to consider when deciding when to trade-in, sales tax. The value of your trade can reduce your overall sales tax. It probably won't be enough to offset the lower price they will offer vs a private sale, but private sales can be a hassle. I have done it both ways and it just depends on the vehicle you have to sell/trade and how much demand there is for it as well as its condition, etc.

The third alternative in some areas is Carmax. They will buy your vehicle on the spot, and their offer is good for 10 days/300 miles, whether you purchase a vehicle from them or not. Their buying operation is separate from the sales side. The bad news is that they pay below wholesale book, but sometimes more than the dealer will pay if you have a vehicle that they will keep on their lot. Older, less desirable vehicles they sell at auction but still want to make some profit on them, thus the low price. Again, sometimes this is a good alternative, but often not.