Here's Why Your Trade In Is NEVER Worth as Much as You Think. (Explained by a Former Car Dealer)

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  • Опубліковано 19 лис 2024

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  • @CarEdge
    @CarEdge  4 роки тому +4

    If YOU have a question that YOU want answered, put them down below and we'll answer them in an upcoming Instagram q/a. Follow Ray and I on Instagram @yourautoadvocate or on Facebook @yourautoadvocates

    • @patrickboyd3364
      @patrickboyd3364 4 роки тому +1

      You got Kelly Blue Book value, and now we have Coronavirus book value.

    • @LifeofaCarnivore
      @LifeofaCarnivore 3 роки тому

      I had a 3 year old vehicle with 19000 miles on been serviced at dealership. the dealers on line trade value calculator priced vehicle at $55000 to $48000. I owed $23000 on vehicle they offered me $24000 on trade on vehicle towards a new one and wouldn't budge. I got up walked out went 30 minutes to another dealer purchased same new vehicle I was trying to buy and they gave me $50000 on my vehicle in trade and also gave me the supplier discount I qualify for the other dealer told me the vehicle I was trying to purchase that the manufacturer doesn't honor that discount. Sad thing is the dealership that wouldn't deal is where I had purchased my previous 5 vehicles and always got a fair deal. Very frustrating

    • @7271293
      @7271293 Рік тому

      If your going to trade in your existing lease in for another lease should you still know the value of your trade in ? And another question is should you still treat it as a separate transaction ?

  • @essentiallyyvonne
    @essentiallyyvonne 8 місяців тому +1

    I for one LOVE the banter!!! I think it's a great personality add to the education given. We appreciate Ray for starting the banter!!!

  • @1jimmcfadden
    @1jimmcfadden 4 роки тому +17

    Was offered $7,500 for my trade from a Chrysler dealer, then went to a Subaru dealer, and was surprised to be offered the same exact amount, $7,500. Sold the car privately for $9,400. That being said most people not suited to the hassle that can be involved in a private sale.

  • @idrivearttabletennis
    @idrivearttabletennis 4 роки тому +10

    If trading, I just want the "out the door difference I need to pay" from any dealer I deal with. If not trading in, I just want the "out the door price" for the car I want to buy. And if both I and the salesperson (person I'm dealing with at the dealership) agree on that amount, then we have a deal. If they then come up with any new fee after that point, then the deal is simply off.

  • @mikerodriguez4608
    @mikerodriguez4608 4 роки тому +3

    Enjoying the channel! You guys consistently produce about six minutes worth of high quality content in eighteen minute intervals.
    "Vigorous writing is concise" - Strunk & White

  • @dpj731
    @dpj731 2 роки тому

    I just used everything you've posted on the channel to help me negotiate for a 2019 Acura MDX with 22,000 miles. Listing price was $42,000 and I was able to negotiate this down to $36,600 and wasn't appalled when my trade in offer initially wasn't great. Eventually after some negotiation they doubled the trade in value. I'm recommending your site to all of my friends who are in the market for a new vehicle. Thank you for providing all of this amazing information and Hail to Pitt!

  • @joekhoury3218
    @joekhoury3218 4 роки тому +5

    Will you do a video for people wanting to become car salesmen? on how to succeed, best practices, mistakes to avoid, and what to look for in a dealership or a sales manager to know if you’d like to work for them or not?

    • @FlyingWheels
      @FlyingWheels 4 роки тому

      You may also like the Flying Wheels channel as well for more car dealer info

  • @clear_gray_sky539
    @clear_gray_sky539 4 роки тому +10

    If they give you a high price on a trade in they just jack up the price of the new car . The sales process is a show

  • @azandy77
    @azandy77 4 роки тому +1

    KBB now offers a cash value offer for your vehicle to take into a dealer. The dealer I went to a week ago here in PHX still would not offer me that amount for my trade. Some great information and perspective in this video!

  • @eclipseusa1
    @eclipseusa1 4 роки тому +1

    Once i actually walk at the dealer and got what I asked for. Of course first was proposed like 2000 for my trade which was below my expectation. So After I was ready to walk out and told them need 4500 for trade they took it. Of course they still got me since i paid asking price . Another think is to make sure what other charges they are adding to the deal. I made sure the doc fee is reasonable and taxes are based on difference between trade and price of the vehicle.And if financing is involved make sure ahead how much it will cost. Lesson I learned is to be ready to walk out even if you really like the car . Just that can make the deal happen.

  • @chuck121370
    @chuck121370 4 роки тому +4

    It’s really not about sentimental value as much as the fact that dealers like to use Galves for trade-in value (and ignore KBB and NADA) values at the time of trade but want to use those same books to establish retail value. I get the reconditioning aspect, but when a customer brings in a true #1 car, they should push to get that value. Buyers also have to keep in mind that trading is a convenience and in most states you pay sales tax less the trade on the new vehicle.

    • @mechmat12345
      @mechmat12345 4 роки тому +2

      Yah, I don't know what this nonsense is about sentimental value. If I look at KBB or Edmunds or whatever and if says my car has a $10,000 trade in value and the dealer offers $7000, that's not sentimental value, it just feels to me like the dealer is trying to screw me over.

    • @chodkowski01
      @chodkowski01 2 роки тому

      I never contacted a dealer. All I did was go on kbb to see a value of my car and now dealerships are calling me. Apparently they use kbb.

    • @ssl3546
      @ssl3546 Рік тому

      @@chodkowski01 LOL yeah you can't just give out your personal info willy nilly and expect the websites not to sell it. They're not using it to send you a Christmas card. Go to the library and read the actual KBB if you want privacy.

  • @crispcarguru303
    @crispcarguru303 3 роки тому +1

    I look at fair or good KBB(not disappointed), I understand dealers need to certify, recondition etc.

  • @rodneypatten714
    @rodneypatten714 4 роки тому +1

    Thanks for you videos, I really enjoy the Father and son banter and I learn a lot , keep them coming! Rod...

  • @ga-prowashllc12.5
    @ga-prowashllc12.5 4 роки тому

    You should make a video how much the car dealers make off of a trade in whether they're wholesaling or retailing great videos keep up the good work brother just found this channel going to keep updating thank you knowledge is something that we will never stop learning everyday is a learning day thank you

  • @gregorypazo6446
    @gregorypazo6446 4 роки тому +3

    Your father would agree! 3 rules in the car business
    1. Dealer makes money
    2. Dealer makes money
    3. Dealer makes money
    Otherwise good info here!

  • @chodkowski01
    @chodkowski01 2 роки тому

    As a consumer I have the same thoughts as the dealer on trade in. I don’t want to pay $26,940 + $1,499 markup fee on a new car that I believe is only worth $22,000. For that reason I have no problem walking away from the dealership. Especially when I know the value my car sells for.

  • @davidhughes1890
    @davidhughes1890 3 роки тому

    CarMax or Caravan can show you what type of trade value you should get from the dealer. If the offer is 7% (State sales tax amount), or higher than what the dealer offers, sale to the used car dealer. CarMax offered more than what I paid for on my spouse’s car, a 2017 Equinox. She does not want to sell it. Ok with me, I get to keep my 2020 Equinox, I purchased in December 2019.

  • @thomasrossi31
    @thomasrossi31 4 роки тому +1

    Quick story. My friend was trading in his SUV and the dealer used the mileage (42,000) on his trip meter as the true mileage. The SUV actually had 95k miles. They didn’t catch it until a day later. They claim the trade offer would’ve been 1/2 of what they gave him.

  • @stephendibari5010
    @stephendibari5010 4 роки тому +3

    This is an awesome educational video... I unfortunately bought a high mileage 2013 BMX X5 in July 2018 (94k miles). I didn’t do my research before buying... In April 2019, i found out that the majority of German cars , mostly BMW’s, are EMPTY $ Pits as they age (5+ years) with 50k+ miles ! After a Long 8 months i sunk nearly $2,500 into it , front end, leaking rear differential and frozen door lock.. SMH.
    In April 2019, I found a beautiful 2013 Lexus ES350 with only 30,009 miles on it. THe Original owner traded it in to a local Volvo dealership in NJ
    ... The first dealer i went too (LExus of Queens) offered me only $8k for the X5, which according to KBB trade in was about $13k... I walked out of that dealership fast! The Volvo dealership offered me $10,200 on the trade in and i took... I paid $18k for my wonderful ES350... I’m sure that X5 went to auction, I couldn’t even sell it privately after about 4-6 weeks
    I’m set for 10+ years with my ES350 ! Lexus/Toyota are by far the most reliable/dependable cars/trucks in the auto industry! Fit & finish and design quality are unparalleled

    • @on-site4094
      @on-site4094 4 роки тому +1

      Stephen DiBari Congrats on buying a Lexus 👍. German cars are very needy especially used and there value tank unless you do your own repairs. Don’t buy. buy a Lexus or a Toyota Honda they hold there value and just work With minimal repairs

    • @stephendibari5010
      @stephendibari5010 4 роки тому +1

      o Rebelo Trust me I have no reason to buy anything other than a Lexus/Toyota! I currently have 36k miles on my 2013 ES350 and this baby will last 10+ years ! I change my own Synthetic oil and do all routine maintenance...

    • @silkee59
      @silkee59 4 роки тому +1

      Stephen DiBari BMW = Bavarian Money Waster wife has three all junk and money pits

    • @stephendibari5010
      @stephendibari5010 4 роки тому

      silkee59 💯!! I learned the hard way !! 1st hand experience.... Ironically In 2011 I bought a 2000 VW Passat wagon , V6 , 5 speed manual for only $3500 with about 70k miles ... That one run great up until 2014 when i had to get my car inspected the car’s computer didn’t interface with NY State DMV’s computer , luckingly i knew the owner of the repair shop and he passed me.. the next year i wasnt so lucky, his shop was under renovation and I couldn’t get it passed anywhere.. at this point i had about 105k miles and i sold it for about $1,200. It gave me a solid nearly 3 years trouble free until the main CPU had issues. Fixing /replacing it would’ve cost more than the car was worth so I dumped it... Got my $’s worth but again... it was dirt cheap at 11 years old for only $3,500 with 70k miles when I bought it ... they dont hold their values like Toyota/Lexus !!

  • @flowstate6769
    @flowstate6769 3 роки тому

    The only time I was surprised by the dealership coming back with a trade-in value higher than I expected was when I was having a midlife crisis and I traded in a Chrysler Town and Country (with a transmission that barely made it to the dealership), for a showroom floor Mercedes E450. Divorce over.

  • @RCDevotee
    @RCDevotee 4 роки тому

    I love Larry and I am a Niner fan. He is not the number 2 receiver of all time but he is a great receiver and person. Thank you for all the great information.

    • @CarEdge
      @CarEdge  4 роки тому +1

      Thanks, Robert. Top 5, how about that ;-)

  • @lauraaday3230
    @lauraaday3230 4 роки тому

    That's why you told me sir I should sell my 2011 Toyota corola to a private party because if I trade it in I won't get that much I really really enjoy listening to you guys and you help me

  • @chefgarrin
    @chefgarrin 2 роки тому

    I worked for a large dealership at their reconditioning shop andcthen realized why the trade in value is generally lower.

  • @geographyinaction7814
    @geographyinaction7814 2 роки тому

    We never brought in a VW, Audi, or BMW that we could re-sell. People become attached, but have also not paid the heavy costs at a VW service dealership to maintain the car. We got the VW, and ran it through the shop to find that the amount needed to safety the car, would have had us beyond retail...we auctioned most of them.

  • @Mark-xh9ne
    @Mark-xh9ne 4 роки тому

    Neat father/son dynamic
    Dad & Mom must have done something right despite all the hours spent at the dealership!

  • @ga-prowashllc12.5
    @ga-prowashllc12.5 4 роки тому +1

    I have a suggestion what if I told the dealer give me a list of work on my trade in I'll update would that satisfy for Market trade-in value adjustment I agree a lot of personal value goes into the vehicle great video keep up the good work

  • @GoTarHeel93
    @GoTarHeel93 4 роки тому

    “How much and my car” - I like that approach to avoid the gaming of moving numbers

  • @bofa83
    @bofa83 3 роки тому

    What amazes me is the trade in for my truck is $20-$24k, and then if you look to buy my same truck they want $$36-40k.

  • @sambogarr8435
    @sambogarr8435 4 роки тому

    My neighbor saw a new car on dealer lot she had to have,she had a top of the line trade in very low milage a true garage kept vehicle kbb said $8500 as average trade value, they gave her $3000 they just plain took advantage of an older single woman walking into dealer alone. Her car was on the lot the next day for $12000.! I was out of town when she purchased so couldn’t help her.sale complete nothing I could do. Never go alone !!! Bring a wing person!!

  • @positively_broad_st3780
    @positively_broad_st3780 4 роки тому

    Make sure you get a thorough itemization on the offer sheet. Some dealers will do things like combine rebate money with trade in offer. I once traded in a car that had a $1000 rebate, but the rebate line said $1200. I couldn't find the trade-in line. They said it was included on the rebate offer. Basically they were trying to buy my car for $200. I called them on it and I ended up getting $1200 for the trade in, plus the rebate (It was an eight year old car, but with low miles.). Go slow and be purposeful, but make sure to have done your research before you meet with a salesman and finance agent...

    • @mechmat12345
      @mechmat12345 4 роки тому

      $1200 for an 8 year old car with low miles? Hope that it was a long time ago, or your car was wrecked or something.

  • @ga-prowashllc12.5
    @ga-prowashllc12.5 4 роки тому

    In most cases I've seen 15 to 25% Blue Book value for reconditioning of the vehicle it's usually what the dealer offered

  • @johnsradios484
    @johnsradios484 4 роки тому

    As an example I was offered $300 on a Jetta from the dealer, I believe it was a 1991. I wound up selling it privately for $1300 to a buyer who shipped to the Caribbean.

  • @kermitalexander6655
    @kermitalexander6655 4 роки тому +12

    Everyone's waiting to see what Hertz is going to do in a couple of weeks.

  • @darnellbowman8419
    @darnellbowman8419 4 роки тому +5

    KBB is owned by a Cox Automotive.....

  • @CottonWoodBlues
    @CottonWoodBlues 3 роки тому

    Fords did give me a good trade on my 2008 Honda fit that needed a Catalytic converter. and had 222000 miles on it. I would have never been able to sale that car for the 1250 trade in value they gave me..and it had smal dents an body paint nicks and scratches. I was totally happy with them going from 750 to 1250. I traded it for a 2013 Honda Fit with only 102000 miles for under 8000 May not be a good deal but I was happy to get rid of the old Honda for a better Honda bcause I really liked the car and gas milage it got.

  • @tchrisou812
    @tchrisou812 4 роки тому +5

    Anyone who remembers George Costanza buying Jon Voights car would disagree.... but I digress

    • @blinkingintensifies8212
      @blinkingintensifies8212 4 роки тому

      He was gonna buy a 89 Volvo instead if I remember correctly. He woulda been better off.

  • @LifeofaCarnivore
    @LifeofaCarnivore 3 роки тому

    I had a 3 year old vehicle with 19000 miles on been serviced at dealership. the dealers on line trade value calculator priced vehicle at $55000 to $48000. I owed $23000 on vehicle they offered me $24000 on trade on vehicle towards a new one and wouldn't budge. I got up walked out went 30 minutes to another dealer purchased same new vehicle I was trying to buy and they gave me $50000 on my vehicle in trade and also gave me the supplier discount I qualify for the other dealer told me the vehicle I was trying to purchase that the manufacturer doesn't honor that discount. Sad thing is the dealership that wouldn't deal is where I had purchased my previous 5 vehicles and always got a fair deal. Very frustrating.

  • @geographyinaction7814
    @geographyinaction7814 2 роки тому

    People take weeks, months, even years to buy a car, and then give the dealership about 30 seconds to five minutes to place a value on their car without the benefit of an inspection. Most people's trades are not worth what they think, and we had some vehicles smell so bad that we couldn't open the door let alone sell it.

  • @kirkdunn1379
    @kirkdunn1379 4 роки тому +1

    Just sell it yourself.....or get at least 5 different appraisals
    Amazingly on newer trades they all are pretty close with the value......but if you want the "MOST VALUE" your gonna have to sell it on your own
    Dealers will play around with numbers on new vs trade to make you think your getting more for yours.....
    Negotiate price of new car and bring in trade at end....if they ask say no trade, than change your mind.....
    But selling privately will get you the most....

  • @mr.aautoworld961
    @mr.aautoworld961 4 роки тому +6

    Hi Guys, Love your channel.
    My question is, should I consider buying a car from one of the large car rental companies Avis,Hertz etc.
    Thanks

    • @cdnlong1
      @cdnlong1 2 роки тому

      That's what I've done for many years. Hertz car sales. No haggle, fixed price, easy. Test drive for 3 days.

  • @kingstonsean
    @kingstonsean 4 роки тому +1

    In my area they flog most cars at auction. But I can tell you that a local dealer told me my trade sold in a matter of days and that it didn't need any reconditioning at all. I've also seen used cars at local lots that weren't even properly detailed nevermind reconditioned.

  • @Fuzzy_Noodle
    @Fuzzy_Noodle 4 роки тому

    No questions. I have a high mileage Excursion v10 kbb says retail with my options is $7500 yet trade in is $550. And yes it needs about 2 k tires are part of that. That would be the price give or take to have a dealer do the repairs. So I’m basically screwed on this but still like the vehicle. Just need to get a pickup soon.

  • @jdburch
    @jdburch 4 роки тому

    I know no one who has a sentimental feeling for their vehicle. They want not to be taken advantage of. And there are just enough “bad” dealerships who take advantage of unsuspecting buyers.

  • @philipallard8026
    @philipallard8026 4 роки тому

    I traded in a van once and got 3k. I saw it on their lot 2 weeks later and they were advertising it for 6k. Of course there was a check engine light on when I let it go. It might have been the the catalytic converter.

  • @Dcopeland62
    @Dcopeland62 4 роки тому +1

    Since the wholesale values KBB and the like give you are supposedly based on recent transactions, wouldn’t those values take into account any make ready cost? Seems to be double counting if you expect to deduct that cost from transacted trades.
    Glad you mentioned double taxation. Not sure about other states, but in Texas if you lease a car you pay tax on the purchase price at acquisition. Later, if you decide to keep the car you have to pay sales tax on the residual value again. Some manufacturers like Toyota, Lexus, and Mercedes have tax credit incentives to reduce or eliminate the taxes at the acquisition. Especially if you do a 1 pay lease. Can save you up to 6.25% on the capitalized cost.

    • @mechmat12345
      @mechmat12345 4 роки тому

      That's what I was thinking. "We can't give you KBB trade in value because we have costs that aren't factored into KBB trade in value because we say so. You can trust us." Really? If a dealer gives me that BS I tell him to go fuck himself.

  • @DanielGarcia-zz9eg
    @DanielGarcia-zz9eg 4 роки тому

    Only time you trade your old car is
    1. Dont have the Patience to do private sale
    2. It's a POS
    3. It's a Lemon.
    Other then that your trade in is about half of what you might think is worth .
    Its either going to Auction or put to sell on thier lot

  • @crispcarguru303
    @crispcarguru303 3 роки тому

    think about how much easier sales would be if everything was based on MSRP or invoice. Only thing needed to work on is trade-in value.

  • @wolfman2926
    @wolfman2926 4 роки тому +5

    I have a question for you. Let say you have a car worth 40,000 and it’s paid for. You want to down grade to 20,000 car would the dealer give you cash back?

    • @mechmat12345
      @mechmat12345 4 роки тому +1

      Yes. Many dealerships will also buy your car even if you don't buy theirs. You can also go to Carmax or similar and get an offer on your current car before you go to the dealership for your new car to make sure you're not getting completely hosed.

  • @DanielGarcia-zz9eg
    @DanielGarcia-zz9eg 4 роки тому +2

    Taken your car to the dealer to trade is like going to a pawn shop

  • @christopherwelch5568
    @christopherwelch5568 Рік тому

    Here's a fun story: I'm in the process of buying a new Subaru. I drive a 10-year-old one with low mileage and very lovingly taken care of. A dealership offered me $11,559 for it. Then they pulled the CarFax. There are 2 typos on it that suggest the odometer was rolled back. I have documentation from mechanics and a state inspection that proves CarFax is incorrect. But the salesman believes Carfax, not me. His offer changed to $5,000.... from $11,559. I told him there's no way I'm selling you my car for that. I'm currently petitioning Carfax about this. My car with the current mileage sells for about $17k. I'm a little offended, but not surprised, that a salesman would believe a typo over a person.

  • @ImmaculateComics
    @ImmaculateComics 4 роки тому

    I love your banter, guys. I’m not even buying a car and I still watch your videos. actually now that I say that I will actually be coming into some money soon and might spend some on a car now that I’m watching your videos. How can I hire you guys to help!?

    • @CarEdge
      @CarEdge  4 роки тому

      Rick, thanks for the kind words! We'd love to help you. More on how we might be able to here: yourautoadvocate.com/

  • @Will-dk4lh
    @Will-dk4lh 4 роки тому +2

    Thanks guys learning a lot about car buying. Question beat 3row seating used or new suv crossover?

  • @djsouth4621
    @djsouth4621 2 роки тому

    I like it when customers, in some situations, owe $35k, so that's what they think thier car is worth. So if they owed zero for their car, would they want zero for it? Of course not. Their car is worth what it's worth. It is not the dealers problem that the customer rolled $6k in negative equity into their new car deal. It is not the dealers problem when the customer did not put down their taxes and fees of $2000 or more . Customers need to understand the different values. Actual cash value. Wholesale value. Retail value.Ect. Customers in 99.9% of trade in situations, are not going to get retail, OR MORE, even though that's what they expect.

  • @chodkowski01
    @chodkowski01 2 роки тому

    Dealers have been contacting me. All I did was go on kbb and now dealerships are calling me. Apparently they use kbb to find cars. This means they know kbb value of car.

  • @concernedcitizen4031
    @concernedcitizen4031 2 роки тому

    I thought most cars were wholesale out. Very few cars on a lot are actually trade ins. They are bought at auction. They make more money off used than new.

  • @ababbit7461
    @ababbit7461 4 роки тому

    Situation. Suppose you want to buy a car worth $30,000 and your trade is worth $10,000 (dealer quote). Can you say to the dealer, "I will give you $21,000 and my vehicle knowing that, in CA, you will pay tax on $21,000 instead of $30,000? Basically, you are getting $1,000 for a trade in instead of $10,000. The dealer then takes your trade in and gets $10,000 at the auto auction. Thus, the dealer's profit is still the original $20,000, which is the difference between $30,000 and $10,000. Your taxes are reduced by $10,000 (taxable amount) because CA does not reduce taxation on the value of your trade in... Make sense? Or is there a "no way Jose" via the CA DMV....?

    • @mechmat12345
      @mechmat12345 4 роки тому

      There could be legal implications for the dealer if they tried those types of shenanigans. I doubt any would agree to that type of scheme.

    • @ababbit7461
      @ababbit7461 4 роки тому

      @@mechmat12345 He is giving a trade in amount and you are buying the vehicle for his price. Where are the legal implications? Car sales are "horse trading" type of events. Unless the law of the State says, "Vehicles must be traded in under FAIR MARKET VALUE" there is no shenanigans, it is "JUST BUSINESS."

  • @michaelbreaux2485
    @michaelbreaux2485 4 роки тому

    Your content is very helpful and entertaining.

  • @JimVincitore
    @JimVincitore 3 роки тому

    Great video! Very cool! Your guys banter is real cool too!

  • @lastnewsnetwork6299
    @lastnewsnetwork6299 4 роки тому

    Dealer offers so much less than Dealer Trade-in Value, because they need to make more money on the trade-in than their new car. The whole reconditioning cost is mostly profit.

  • @amandabikes
    @amandabikes 2 роки тому

    So, does the Black Book trade-in value not mean anything? Should we not expect something within Black Book trade-in range?

  • @michelswerissen6544
    @michelswerissen6544 4 роки тому +2

    When I have bought new cars never talk about trade in value talk about change over figure that Iam comfortable with dealers have all sorts tricks to make a deal all sorts of mathematical tricks of the trade, who cares about trade in price its the change over figure work on that.

  • @P20022
    @P20022 4 роки тому

    You guys are great! Perfect video for me today. I have a red 2005 Honda Civic coupe with a cool spoiler and 165,680 miles. It’s not worth much but I’m wondering if it is worth it to trade it in when i purchase a 2020 Subaru Crosstrek Premium here in Phoenix?
    Thanks so much for teaching me all the ins and outs of car buying/selling. Really love you guys! Keep having fun with your new endeavor online.

    • @CarEdge
      @CarEdge  4 роки тому +1

      Patricia thanks for watching. You could always get more selling your car yourself and honestly, your car sounds like the perfect first car for a teenager who just got their driver's license, relatively inexpensive and Honda reliability. Let us know how you make out. Stay safe, Ray

  • @crispcarguru303
    @crispcarguru303 3 роки тому

    Why would it matter if they make more on wholesale wouldn't it be cheaper and easier to deal with? no certification, etc. Missing out on the finance portion and future servicing must be one of the reasons?

  • @geraldbennett7035
    @geraldbennett7035 3 роки тому

    dealers make way more on trade-ins. They can make 8% on new but 20% on used.

  • @rdief528
    @rdief528 2 роки тому

    So you’re saying if I have a trade-in negotiate that price first and then negotiate the price of the used car. I have a car that I’ve seen the range of trade in as anywhere from $17,000 to $23,000. The two vehicles I’m looking at are both at $43,000. So get as much as I can for the trade and then negotiate the price on the other vehicles, correct?

  • @eeclarkutube
    @eeclarkutube 3 роки тому

    So 2k to bring a car up to retail standards…. So if KBB says my car is with 58k, why on earth would I take 52k from a dealer for it?

  • @morganvon5664
    @morganvon5664 4 роки тому +3

    This is nonsense. I was offered 8300 in trade on my Porsche Cayenne. I sold it myself in less than a week for 14k. Dealers want to make a killing on used cars. They count on lazy customers who don't want to sell it themselves. Further, dealers often don't inspect the traded in car at all. I've test driven used cars that are out of alignment, with low tire and oil pressure and other problems. The excuse? Oh, we just got this in. LOL!

    • @mechmat12345
      @mechmat12345 4 роки тому

      Exactly. Most trade ins get a detailing and the fluids topped off but not much else. I don't buy that the average car costs $1200 or whatever to recondition. More like $200.

  • @anthonybailey6730
    @anthonybailey6730 3 роки тому

    I have a 2020 Camry XSE 4D. I want to trade it in, pay off is 24,500 the pay off is 25,000 with 41,000 miles. Can I get a good deal on a new SUV or Car?

  • @rogerkinard7446
    @rogerkinard7446 4 роки тому

    Perhaps if Ray had been mentored as a boy by a very, very knowledgeable father, uncle, older brother, or just a kid in the neighborhood, I’m fairly certain he would better be able to appreciate the many intricacies of the ⚾️game of baseball⚾️ and, therefore, not find it so boring. Thanks, guys !!!

    • @CarEdge
      @CarEdge  4 роки тому +1

      Roger, my father was not a fan of baseball and I think that is the reason I was never a big fan as well. So, yes I think your right had I had the proper mentor I probably would have learned to appreciate it more.

  • @samiis1260
    @samiis1260 4 роки тому +1

    Reconditioning is BS.All they do is send it through the cleanup shop,change fluids if needed and a set of used tires.

    • @kidsnewschannel6003
      @kidsnewschannel6003 4 роки тому

      This is not true, at least not at most dealerships. If it only needs an oil change, inspection (for warranty purposes), and a bath, it is worth more than if it needs tires, brakes, has body damage, accidents on history report.

  • @hm12460
    @hm12460 3 роки тому +1

    My trade in's are gold!!

  • @jazminmcromance
    @jazminmcromance Рік тому

    We bought a car about a month ago and it barely has 700 miles, we want to trade it in for a cheaper one and the car is paid off, how would that work?

  • @renv9231
    @renv9231 4 роки тому

    I recently discovered your channel and enjoy your content and the banter between you and your father. Let me ask you both this question. Why do manufacturers let dealerships line the front of the lots with used cars? I assume they make more money on the used cars but they look like a used car lot, not a new car dealer.

    • @ssl3546
      @ssl3546 Рік тому

      It's not a McDonald's franchise. The manufacturers have very little control over the dealers (and the distributors in the case of certain imports).

  • @jamesdodson2921
    @jamesdodson2921 4 роки тому

    You guys are great, funny and relatable.
    My question is about all these new No Payments for 90-120 days offers?
    Are they just deferring the payments to the end of the loan term or deducting them as a sale off the price of the car?
    No one advertises the actual price anymore. It's just all about bi-weekly payments and interest rates.
    Thanks

    • @TheOzthewiz
      @TheOzthewiz 4 роки тому +1

      They are just extending the loan. You will still pay the SAME total price!

    • @macmedic892
      @macmedic892 4 роки тому

      ojars zvaigzne Actually it’ll be a little more because of the interest that built up between the sale date and the first payment.

  • @pacomelendez5030
    @pacomelendez5030 4 роки тому

    You guys are awesome and i love the chemistry. My question is do i trade in my car which i still owe for and do a lease sign in as a downpayment? What do you suggest i do instead?

  • @nicholasnorris4393
    @nicholasnorris4393 4 роки тому

    I traded my 2007 Toyota Tacoma extended cab with a 4 cylinder engine and 2wd. They gave me $4k and change. Then they turn it around for $8k-$8k and change on their used lot. It was gone off their site 2 weeks later.

    • @tlockerk
      @tlockerk 4 роки тому

      I once heard the dealer calling his niece to come get the car I'd just traded in!

    • @nicholasnorris4393
      @nicholasnorris4393 4 роки тому

      @Phil Meup of course the thing was 10 years old, needed body work in one spot, and some paint touch UPS in a couple of spots, and had 172k miles and change on it.

    • @nicholasnorris4393
      @nicholasnorris4393 4 роки тому

      @@tlockerk what kind of car? 🤔

  • @therealyousef
    @therealyousef 3 роки тому

    With the current used car market, should we use some multiplier to KBB’s value in estimating the value of the trade in?
    When searching vehicles very similar to mine, I’ve noticed they range anywhere between 20-40% more than the KBB value.

  • @dootdoot1867
    @dootdoot1867 4 роки тому

    The Dealer can't offer fair market value for a Trade in, Because the overhead of running a New Car Dealership makes selling used Vehicles nearly unprofitable. That is why you overpay in most cases unless they need cash flow or space, and you lose when you trade.
    But also factor in the value of your own time to sell a vehicle, Test drives, calls, Listing costs, lost personal time... Etc. Does that factor in to being more than the cost difference?

  • @johncoffman2703
    @johncoffman2703 4 роки тому

    good stuff guys. learning lots thanks

  • @lorenperez4354
    @lorenperez4354 4 роки тому

    Hi boys, at the end of my lease, my car was inspected for damages. They found an issue and was told that they would bill me for the repair cost. I received the bill but was not given any proof that the repair had actually been done. They said that the car had been sent to auction and that they were unable to give me any evidence of such repair. Is this standard practice? Billing for something that you have no proof of? Thank you😎

  • @pondaranks
    @pondaranks 4 роки тому

    Huh??? This is not how they deal with trade ins in nyc.... the dealers lowball at certain places cause the just don’t want the car in their lot... so they go way below trade in cost to either scare you away or if you don’t get scared away they get your car for dirt cheap...

  • @alaskaaudioguy35
    @alaskaaudioguy35 3 роки тому

    Sales tax I’m my town is onLy 30 bucks so it doesn’t change price really here

  • @donaldlee6760
    @donaldlee6760 4 роки тому

    More great inside information. Thank you for making the process transparent. At 5:58, it seems the additional $2000 for reconditioning is a difficult obstacle for a customer selling their used car at a price they want, and later, a customer buying a used car at a price they want. You gently hint that the sales department is "stuck" sending the newly acquired used car to the service department, and the service department is taking advantage of their captive customer (the sales department). If this is correct then does a person selling or buying their car have a better alternative to capture some of the $2000 reconditioning cost? Also how does the reconditioning cost typically break down?

    • @chodkowski01
      @chodkowski01 2 роки тому +1

      I always look at the car I own will be trading in one day so I maintain the car to keep it in its new condition so when I trade it in recondition costs are low.

  • @isettech
    @isettech 4 роки тому

    Swap positions. Try to buy a used car at auction prices from a dealer. Good luck. Going in with a trade in and being offered nothing for it, results in me saying, I decided to keep it. The dealer then responds with then we can't offer the new car with that discount, at which point prepare to walk away, They can either continue the sale or watch you leave, or best is get a 2nd better offer for the trade in. It'll go one of the 3 ways. I've walked on a few as I tell the dealer, the trade in is too little of a down payment so I can't afford it on a 36 month. Dealers really try to get the 72 month finance which is really expensive.
    My wife shot down a dealer finance guy in flames. He could offer us 15.9% due to our excellent credit. Wife responded with no it's 5.3%. He stated that customers don't get to chose the rate. Wife responded that we are pre approved at the credit union. Did he want to match the rate or take a check. Loved my wife. Ace played. They matched the rate and term.

    • @tlockerk
      @tlockerk 4 роки тому

      Well they re a business, and need to make money to stay in business. It is frustrating that there are so many moving parts. Think it's worth it to pay these guys to do it! Good business model.

    • @isettech
      @isettech 4 роки тому

      @@tlockerk But not overpay. If they are not competitive in slow times where every dollar is accounted for, they are irresponsible trying to bamboozle the consumer with extra fees, long finance periods to make payments "Reasonable" at a cost, and offering next to nil for the customer's asset, the used car.
      I'm looking at used rental cars. Every time I put in a search with my location, what I am looking for is always more than 500 miles away and includes destination fees. I keep telling then destination charges add no value to me. Call me when you have one locally.

    • @mechmat12345
      @mechmat12345 4 роки тому +2

      @@tlockerk In the video, the older gentleman (sorry, don't remember names) said the dealer and the customer have the same goal. isettech scenario is a valid point, the customer and dealer don't have the same goal. The customer is trying to obtain a vehicle to function in life, the dealership is purely motivated by money. They're always going to be more highly motivated to screw you over than you are to screw them over.

  • @strategicservices9906
    @strategicservices9906 4 роки тому +1

    I'm looking for Jeep Patriot late model; It was discontinued in 2017 . Should I be looking only at new car dealer lot or a strictly used car lot independent lot.?

    • @hm12460
      @hm12460 3 роки тому

      Why in the world would you or anyone look for a Jeep Patriot? Big rolling pile of turd.

  • @anthonyderoy9725
    @anthonyderoy9725 4 роки тому

    How is ACV determined and how is it universally the same if every useful car is different?

  • @isabelgeddeshines4059
    @isabelgeddeshines4059 Рік тому

    I would rather donate it over trade in

  • @RJMEL24
    @RJMEL24 3 роки тому

    You guys are great.

  • @debrarivera2936
    @debrarivera2936 3 роки тому

    Hi! I love your channel! I watch everyone you put out because I want to educate myself when I finally get ready to buy another car. I do have a question regarding my older cars (1996 Chevrolet Express Conversion Van). I have been offered $300 for it when I recently inquired about trading it in. It has no rust and no dents and everything works and is in fantastic condition. Even has a trailer towing package! Obviously I would never trade it for that amount so I am thinking to advertise myself or to just donate to a charity (not expecting to be able to itemize on my taxes). Would I get more than $300 if I sold it for scrap?

  • @conbriosynthesizers3428
    @conbriosynthesizers3428 4 роки тому

    So - better just to sell your own car to another buyer on Craigslist or something, get rid of the middleman and focus on JUST the price of the new car?

  • @troyallen3427
    @troyallen3427 4 роки тому

    Megatron is # 2 !

  • @pattiberry2432
    @pattiberry2432 4 роки тому

    You guys are the best! Btw- I live in Iowa and A big Kurt Warner fan !

  • @stuartmenzies3928
    @stuartmenzies3928 22 дні тому

    get going bud!

  • @hume1963
    @hume1963 4 роки тому

    Great video. Very informative.

  • @7271293
    @7271293 Рік тому

    Can you negotiate the lease trade in ?

  • @crispcarguru303
    @crispcarguru303 3 роки тому

    Lol, I like the customer that wants great kbb with only good mechanical but bad body work, bald tires etc.

  • @MsAnderson-
    @MsAnderson- 2 роки тому

    Can someone help me understand what is meant by “How much and my car?” 15:32

  • @mylife4290
    @mylife4290 2 роки тому

    Not true, trade in may be sentimental to some but not everyone. When I trade in, I speak with the dealer in the same terms, wholesale or retail. It's just metal but I also know what it's worth and I don't budge. Period.

  • @mang1953
    @mang1953 4 роки тому

    KBB is nothing more than a lending guideline for banks, they [ KBB ] don't purchase vehicles ! every trade-in has it's own ACV based on it's market, condition, and age.

  • @joannmcrae3254
    @joannmcrae3254 4 роки тому

    Should I make repairs before trading. Such as scratches, broken fog light

    • @CarEdge
      @CarEdge  4 роки тому

      Joann, it depends on how bad the scratches are and how expensive it is to fix the fog light, what might cost you a couple of hundred dollars might only be $100 to the dealer. Stay safe, Ray