I say NEVER trade in a car to a dealership. Either sell it yourself or keep it. Actually with todays ripoff prices it is always better to keep your current car for as long as you can and do all the required maintenance. Always remember that buying a new car will keep most middle class people in the poor house and will keep people from acquiring any real wealth.
Keeping a car for an extended period means you miss out on advances in safety. Some of the safety features in your car may cease operating correctly as well. It’s not as simple as maintaining and keeping for over a decade.
Some states reduce the taxable amount of the new car you're buying whwn you trade in so depending on trade in value it could be better to trade vs sell private party
Good video. Like you said, Remember that the trade will more than likely save you money on the taxes so you need to factor that in to the OTD price. I was looking at a new 2023 F-150. They were giving me a decent deal (8-9%) off MSRP. It had 200+ miles on it. I decided to look at KBB for a used 2023 F-150, same exact equipment and mileage as the one I was considering buying. Turns out, if I paid what they wanted today, and attempted to trade it the next day, I’d be offered 15% less then what I paid just 24hours later!!!
I have never found a dealer willing to give me a written, out the door price for my car without having to sit for hours going through the process of setting a price, then the endless sales add-ons in the finance office, etc.
I just want to give a big thank you to both Kevin and Elizabeth for their excellent buying tutorials. I just completed a very simple purchase at Cedar Rapids Toyota in Hiawatha, Iowa with an amazing salesman, Alan. I used the step method they suggested(OTD, tradein value, getting a little bit more on my trade, and finding they actually had a sale and started at $995 off the window sticker. There were no add ons with the exception of factory add ons to include in the bargaining. I felt that based on the small amount of new vehicles in their lot that trying to push down the asking price would not be a reality. In the end, I got a very good deal. This was the second purchase in a week that myself and my girlfriend made there. We made hers first following all the techniques that I learned from your channel, and I then went back and purchased one for myself. I didn’t even need the techniques the second time because the salesman and the dealership were totally transparent after the first transaction. Again, thank you for all the advice.
Your advise is spot on except that when you talked about trade ins, you assumed cash payment, no finance thus leaving out the "4 square" (trade in value/purchase price/finance rate/finance term). That's where a dealer tries to confuse you by offering a relatively high price for the trade-in offset by higher price on the purchase. A dealer can offer a sweet looking deal on a purchase/sale offset by a rip off interest rate.
What are appropriate expectations for what a dealer can be pushed to pay you versus what the car would sell for private party? Should they get a 10% ROI? 10% or $1000 which offer is lower? What's reasonable?
Kevin / Liz Please Which car is better Honda CR-V and Toyota RAV-4? What is the best year of production 2022 and 2023 or 2024 What about Hybrid or the Gas ? Please I appreciate your insight
Agree. I also believe it is better to keep a car as long as you can. If a person does all the required maintenance a car can easily last from 15 to 20 years.
I say NEVER trade in a car to a dealership. Either sell it yourself or keep it. Actually with todays ripoff prices it is always better to keep your current car for as long as you can and do all the required maintenance. Always remember that buying a new car will keep most middle class people in the poor house and will keep people from acquiring any real wealth.
Keeping a car for an extended period means you miss out on advances in safety. Some of the safety features in your car may cease operating correctly as well. It’s not as simple as maintaining and keeping for over a decade.
just don't keep it too long - my 2002 Gallant caught imploded at 160K and I had to pay for major repairs☹
Some states reduce the taxable amount of the new car you're buying whwn you trade in so depending on trade in value it could be better to trade vs sell private party
You are right! More people need to learn this instead of going into debt buying new overpriced cars every few years.
Good video. Like you said, Remember that the trade will more than likely save you money on the taxes so you need to factor that in to the OTD price.
I was looking at a new 2023 F-150. They were giving me a decent deal (8-9%) off MSRP. It had 200+ miles on it.
I decided to look at KBB for a used 2023 F-150, same exact equipment and mileage as the one I was considering buying.
Turns out, if I paid what they wanted today, and attempted to trade it the next day, I’d be offered 15% less then what I paid just 24hours later!!!
I have never found a dealer willing to give me a written, out the door price for my car without having to sit for hours going through the process of setting a price, then the endless sales add-ons in the finance office, etc.
The Toyota dealer offered me $20,000 for my Camry. I went to Carmax and I got $23,600 for it. Thanks Carmax.
@jaysmith179 - nice. More than made up for the tax difference!
I just want to give a big thank you to both Kevin and Elizabeth for their excellent buying tutorials. I just completed a very simple purchase at Cedar Rapids Toyota in Hiawatha, Iowa with an amazing salesman, Alan. I used the step method they suggested(OTD, tradein value, getting a little bit more on my trade, and finding they actually had a sale and started at $995 off the window sticker. There were no add ons with the exception of factory add ons to include in the bargaining. I felt that based on the small amount of new vehicles in their lot that trying to push down the asking price would not be a reality. In the end, I got a very good deal. This was the second purchase in a week that myself and my girlfriend made there. We made hers first following all the techniques that I learned from your channel, and I then went back and purchased one for myself. I didn’t even need the techniques the second time because the salesman and the dealership were totally transparent after the first transaction. Again, thank you for all the advice.
Your advise is spot on except that when you talked about trade ins, you assumed cash payment, no finance thus leaving out the "4 square" (trade in value/purchase price/finance rate/finance term). That's where a dealer tries to confuse you by offering a relatively high price for the trade-in offset by higher price on the purchase. A dealer can offer a sweet looking deal on a purchase/sale offset by a rip off interest rate.
Is it also true that you might get a better deal on a used car, such as a Mazda at a Ford dealer, for example?
Kevin by far has the best information out there. Love the videos
What states only tax us on the difference in the trade?
minnesota is one.
does their website only offer help with buying NEW cars from the dealership? Do they help with pre-owned dealership certified vehicle purchases?
What are appropriate expectations for what a dealer can be pushed to pay you versus what the car would sell for private party? Should they get a 10% ROI? 10% or $1000 which offer is lower? What's reasonable?
Tell your salesman that you need an extra $2 thousand for your trade so that you have money to spend when you go in to see the finance manager.
just say no to the f&i guy add-ons
Kevin / Liz
Please
Which car is better
Honda CR-V and Toyota RAV-4?
What is the best year of production 2022 and 2023 or 2024
What about Hybrid or the Gas ?
Please I appreciate your insight
Rav 4
Rav 4
Always Toyota....Hondas are highly overrated, grossly overpriced, fugly junk. 💰🤑🤮
Don't care for Rav4's cheap looking interior and prefer CR-V and Honda looks and the way they drive.
NEVER TRADE IN A CAR LOLOLOLOLOLOL WITH ALL THE WAYS TO SELL IT YOURSELF ONLINE - MULTIPLE FREE WAYS TO SELL AT A HIGHER PRICE WAKE UP !
Agree. I also believe it is better to keep a car as long as you can. If a person does all the required maintenance a car can easily last from 15 to 20 years.
unless a test driver steals it, uses counterfeit cash, a forged, altered bank check, or other tactics.🤔🧐🤯
Wow was that guy actually using a brush on the paint 😮
This video benefits the dealer.