Nuieve

http://www.karlchevrolet.com/valuetrade.html

Is this really being run off BB?

I estimated one of their own Vettes they have for sale... They're asking 37k but having entered car's details and their location I got 21-29k trade-in range. I know dealers will never give you a penny over black book, so...

...does this mean one shouldn't pay more than 30k for it?

michaelinmech

There is a discernible difference between 'full market trade in value' and 'dealer retail pricing' . . . . so using the car and numbers you used, trade value is say 29k, retail asking price is 37k and they would probably sell at 33k for tidy profit of 4k for the dealer - gotta make money to keep the doors open - my thoughts

FortMorganAl

What a dealer says they are giving you for a trade in is totally meaningless. The only thing that is important is the net difference. I'll give you $100,000 in trade in for any piece of junk you haul in but you might not like what I charge for the new car.

Hint: You will save a lot of money being a dealer yourself. Buy the new car with cash (replacing the dealer finance department) and sell the old car on the street (replacing the used car sales staff and overhead). Or just PM me and I'll sell you any car you want and give you $100,000 trade-in for your used car.

not08crmanymore

What would "it" be exactly? I put my trade in there and there is an 8000 dollar gap between trade numbers...that's pretty steep.Long story short..it's there to get you in the door. All that should matter in the end is the bottom line.How you get there doesn't matter as long as you're happy and the dealer is making a living..

z51vett

Not in bb with 2012 z06 here and they want are you ready for this 71000 for new car and 55000 for my car 16000 dif a little steep don't you think. both cars are same price new oh its a new 2013 z06.
z51vett

o2z51

have none of you ever traded a car?? do you think they give you book retail?

FortMorganAl

I once traded a car and when it came time to sign the papers they gave me 4 times the NADA retail value. The book value was what the salesman had first proposed before I told him I couldn't care less about individual numbers and was only interested in net. For tax purposes it is sometimes advantagous for a dealer to give you a high trade-in value on paper. When tax time comes they can sell the car at a "loss" and still make money.

I'll repeat my offer. I'll give you $100,000 for anything you can drive, push, or drag in if you buy a car from me. We'll discuss how much the new one costs later.

morgaa01

Hello,

As most people have said - forget everything and focus on the bottom line.

Let me tell you about the last time I bought a vehicle from a dealer:

I wanted a 2006 Toyota Tundra (Limited) or the loaded 2006 Nissan Titan in Dec 2005.

I really wanted the Tundra but figured I would settle for the Titan since it was a lower price.

I had 3 cars to trade-in - Yes 3 cars:

2002 Audi A6 with 75,000 miles
2000 Pontiac Grand Prix with 200,000 miles
2003 Toyota Tacoma Double-cab 4x4 180,000 miles

I went to each dealer on a Saturday the month before in Nov 2005 and picked one salesman. I told them each - that one month from now, I will come back and trade in 3 cars and all I want from them is the their bottom-line price on a piece of paper for the vehicle I have chosen and nothing else.

So the next month came and my wife, daughters drove in our cars like a parade to Nissan first. We had our fourth car. I told the salesman, that my family and I were going to get a cup of coffee and will come back in a half hour - giving them time to appraise our cars. The salesman was dumbfounded. I told him we would be back in the afternoon to get their price on a piece of paper.

We came back in half-hour and picked up our cars and drove to the Toyota dealer and did the same thing. Again, the dealer was dumbfounded by our approach.

So afternoon came and we went to the Nissan dealer first, my cars were worth about 14K wholesale. The list price for each truck 38K (Tundra) - 36K (Titan) - I was looking for 21K out the door which would be somewhere around invoice for new models in demand was a good price.

I went to Nissan first - he gave me a piece of paper with 24K on it. I told him I didn't think that was a good price.

In all honesty I was worried now since I had figured all along that Nissan would give me the lower price. I said I was going to Toyota and I told him I would stop back.

I went to Toyota and found the salesman and he slid a piece of paper across the table. My wife could not hide the shock from her face. -, on it was written $19,999 - I reached my hand across the table and said we have a deal.

I didn't know how they got to that price and I didn't care.

Bottom line to this long winded story is that know what your cars are worth and know what the vehicle you want is worth, know a little about dealer wiggle room (hold-back, incentives etc.) and you can get a good deal and they can still make money.

Everything else they do is a shell game.

I still have that Tundra with 200,000 miles on it.

I save money every few years to replace my vehicle.

Two years ago I was going to replace my Tundra but it was still running great!

My wife said to me - instead of buying a new truck - why don't you buy that Corvette you always wanted. I said Honey - I know I married you for a reason!

I found a used 2008 3LT JSB Vette on this forum and it is sitting in my garage waiting for spring to come.

Now you know why that story is so important to me.....

Daekwan06

Easiest way to understand this. A dealer can make money off a trade, in two different ways:

1) Low-ball you on your trade-in vehicle.

2) High-ball on your the vehicle you are purchasing.



The dealer is business to make money. They will never "lose" on the transaction. If they give you more money for your trade in vehicle. They simply charge you more money for the new vehicle you are purchasing.

Radioman

As I recently discovered this is a common ploy to get you into the store and then embarass with what they will actually pay for your trade. They are willing to insult Corvette buyers just the same as Cruze buyers...

Mad*Max

Curious - in the US do you pay tax on the difference between the purchase price of the new car and the trade in value the dealer pays you on the used car? Over here we end up saving 13% (yes 13%) tax on the trade in value so sometimes it makes sense to trade in vs. doing a private sale.

CBRXX

In Massachusetts we do that too. Tax is 6.25%. Not a big deal if you're trading in a worthless old car, but clearly can make a difference if your trade was fairly new.

Of course a few months after you get the new car home here, you get your annual excise tax bill, which is 2.5% annual to your town. They must use the dealers wholesale book for that, the values they use are always low enough you could never argue. My '12 GS 2LT was around $50k value when I got it last January, and just got bill, and I think was about half that this year.

Chuck Little

Each of the 50 states are different and the rate varies from each. Some areas even have local taxes. Some state just charge on the difference between, and other charge on the sale price, and some you can play with.

not08crmanymore

In NY yes,buy, lease,it doesn't matter..In Vermont,if you lease,you pay full price tax.

Zoomin

It varies by state. Some charge a lower percent based on purchase price, some are like you describe. Rates and methods are all over the place.

Chuck Little

Simply put, a dealer is buying your car when you trade it in. You feel it is worth more than don't do it. Your choice.

A good deal is when everyone walks away happy. Why would you spend thousands of dollars with someone you didn't like, don't trust, and you feel is trying to screw you? Or is it you?

AORoads

And some states, like mine, don't charge the normal sales tax rate, but a reduced rate for car purchase, new or used. Which probably means long ago, and still continuing, the "dealer lobby" is large and contributes a bit...