i literally walked into the dealer and said i pay that much and i want that much for my trade! they gave me a low ball offer and i walked! They called me a week later ( closer to a quarters end) if i could come back in? I said sure! Then instead of being $5000 apart we came closer to about $2000. I walked again, said call me when i get what i want! They called me on 3.31st at noon to do the deal! I was very proud of myself and still happy with the deal i made!
I just went to a dealership and used some of the information and caught the salesman fumbling his nonsense and admitting to things I caught him lying about. This channel is amazing.
I used Car Gurus to find a new 2023 Hyundai Sonata Hybrid listed for $2,000 below MSRP. I contacted the dealer, confirmed they had the car and then used their website to determine the sales price was $2,000 below MSRP, a value they would pay for my trade (they offered over 5K online) with me inflating the mileage the car had and saying it had cosmetic damage when it doesn't. I drove two hours to the dealer, test drove the Sonata while they appraised my trade in. After the test drive they said "corporate" could only offer $1,000 for my trade and the Sonata was actually full MSRP because the price online included every incentive offered by Hyundai and I only qualified for one. I showed my printed screen shots of emails with the dealer and the quote from their website showing the car in worse shape than it is but valued higher than what they were offering. The sales manager wouldn't budge claiming "corporate" wouldn't let him. I walked out to my trade-in and drove two hours home. I was there because I wanted a new car, not because I needed one. Total waste of time.
I’ve been looking for a new 2024. Here in Orlando there isn’t enough inventory, and the dealerships aren’t budging on price. They make car buying more difficult than it should be. I’ve thought about flying back to Iowa where I’m from and buy a vehicle, then drive to Orlando. I hate buying a new car.
Pre-covid I was looking in a city 90minutes away. Drove my pickup, but was trying to trade in our car. I had someone take me thru the entire lot, found a car, did the paperwork, but I didn't want to swing the payment. Took 2hrs or so?? As I went to drive away a different salesman literally ran up and offered me 12k on the spot for my truck. I said "Sure!" They said they had to verify it, but someone had literally just called looking for what i was driving. An hour later said person never having showed up, I was told my truck didn't have a clean title, which it does according to my paperwork and the dealer I bought it from, and they could only give me 4k...felt scammy. Day wasted and a ton of stress about my trucks history added to my life.
We bought a used SUV recently, and the dealer we bought it from lowballed our trade in at a ridiculous amount. We simply bought the SUV w/o a trade and got a much better cash buy offer at a different dealer. Was extra steps but ended up worth it.
Recently had a bad experience trying to buy a ‘used’ car using my current car as a ‘trade in’. The dealer low balled the value of my car (compared to Kelly and Edmunds) as expected; and then increased the price of the car I was interested in by $1K more than it was listed for on their website! -> How can they get away with this? - Simple, it’s their dealership, their cars and their terms. YOU HAVE to be prepared to walk out at any point during negotiations. And you must do some research on vehicle pricing PRIOR to going shopping. Yes ‘time is money’ and if you want to save some money you gotta put in some time. So much can be learned from the internet these days. Good luck to all and try not to get discouraged. 🤞
Beyond the educational value of your videos the entertainment is great as well. Y'all have such a great dynamic and it's so easy to watch. Every video is captivating.
This just happened to me. I made the mistake of not looking up my car value before I went in. They offered a ridiculous price on my trade in and that ended the conversation. I would rather set my car on fire than allow you to steal it from me. This also gave me time to reflect on the new car and realize my old one is actually nicer.
I think that not everyone is out to steal your trade in. Easy way would be to check with multiple sources that would buy your car and bounce that against what the dealer is offering. I valued my 2017 Ford Focus SEL Hatchback at $9K . Carmax offered $9600. Dealer without any prompting offered $10K. Since I purchased the vehicle new and my out of pocket costs were $15K, I did not feel like the dealer was trying to steal the trade in. I purchased a Chevy Equinox Premier and the out the door price was under 37K. Overall very happy going with the dealer trade in.
Excellent information that I can confirm. My last 2 car purchases were in 2017 and 2019. Both purchases were at the same dealership. In both instances I took my trade-in's to my local Carmax Dealership, where they inspected the vehicles. I left with printed offers to purchase in hand. After the new car dealership was finished with their attempts to buy my cars at rediculously low prices, I produced the Carmax offers. By the looks on their faces, they were not thrilled, to put it mildly, with my tatic, but they matched the Carmax offers. Also, I reside in Florida and can confirm the taxable amount of the purchase is reduced by the trade-in value. I appreciate your commentary regarding the dealership "stealing" my trade-in. I only consider it stealing, if the used car manager has a gun to my head. 🤣🤣 Otherwise, it's a mutually agreed upon contract for sale. Ray, you don't happen to have a concealed carry permit? Do you? 😉😉🤪👍😎✌
All 100% correct info, based on my years of selling vehicles. Sometimes your trade in offer will hinge on the mood of the day of the sales manager. If he is feeling bitter and tight fisted that day, you might get a lower offer than if he's feeling great that day. Get all the online offers first 100%. I'd totally ignore KBB and NADA. Their estimated trade values are often wildly off base.
What I get a kick out of on the dealership lot is when they have new vehicles that have been on the lot for over 200 days because they are greedy to not break on the price, but then put on the truck $3k off the MSRP and still can't sell it. Why because they won't break on the actual price of the truck. A dealership has a little lead way between the MSRP and dealer invoice price (DIP) to give the customer a little break on the vehicle for the customer to see that they getting a deal with something off plus the rebate. The trade in the dealer always tries to screw the customer and a lot of customers really don't realize that and they think they are getting a good trade in and really the dealer gives them about a $1k to $1500 less than what they should have gotten.
In my area the new car dealers do not try to sell their trade-ins. They immediately either send them off to auction or they sell them to a regular used car broker. They dont run a used car section at the dealership any more. They might keep a few of the higher value vehicles on their lot for resale but most are shipped out right away.
Great advice, thanks! Our Tesla & MINI dealerships were our BEST EVER shopping & purchasing experiences! Yes a business making their profit, we expect this from all retail. But zero bs interaction, civil negotiation, & simple financing paperwork. Why are some dealerships just gross?! I walk out as soon as I sense uneasiness from the salespeople’s desperate energy.
Almost exactly what I did. I knew the value of my truck. Multiple sources checked. The truck was in pristine condition. Not a mark on it , less than 8k miles, well equipped. Recent first oil change and the service department couldn't believe it was 1.5 years old. A bath and it looks brand new. I wound up selling it to my dad at the high trade in plus tax savings. Dealer was a little disappointed. Nissan Frontier with the long bed comes standard with the tow package. Hard to find the long bed in crew cab. I don't think most people realize the long bed is available. I haul stuff.
The major problem is what you guys touched on in #2 with the 'sales tax basis benefit' in most states. With the way its calculated now, it allows dealers to lowball you and collect the net on the sales tax for themselves. In the internet age, you should be able to sell your car to Carvana, buy a new car from a dealer, and be able to get the same sales tax benefit - maybe you have to recoup it when you file your taxes but you should still be able to do it somehow. Since you can't, dealers know they can look at your Carvana offer and collect the sales tax benefit for themselves by low balling you for the difference.
What kind of crank do you guys smoke? If you trade it in, you pay sales tax on the difference. If you sell to a third party, the third party is responsible for the sales tax on the car you sold, and you would pay sales tax on the full price you bought on car from the dealer. In other words, if you trade it in that is one transaction. If you sell to a third party, and buy separately, that is two separate transactions that are not connected.
@@tommak6516Not in every state. In CA, even if you trade in your car, you get zero tax benefit. So if u trade in 30K car, and buy 50K car from the same dealer as one transaction, we still pay full sales tax on 50K…really bad.
I would argue the worst thing you can do is muddy the negotiation waters with a trade in. In this day and age of being able to get decent cash offers from many different used car franchises, it makes sense to simply sell to them (if you aren't comfortable selling private party). This way when you negotiate on the car you are buying, the only numbers to work out are the sale price, loan interest rate, and then any BS fees/add-ons/markups, etc which she be as close to $0 as possible.
That’s why you negotiate the OTD price before you let them have the opportunity to bid for your trade. I say bid because you’re certainly not obligated to trade in your vehicle. I usually do because I pre negotiate the OTD price and tell them I don’t have a trade in even if I do until I have the bottom line price negotiated. At that point, I pull out the best written offer that I received and get the dealer to match that. Once they match the highest offer I would have gotten from Carmax, Vroom, etc, I then make the deal and bring down the sale price of the vehicle and lower the sales tax of the vehicle by the same amount. When you combine these two figures, you will almost always come out ahead by using your current vehicle’s equity to lower the drive out price than by selling privately and paying full price including full sales tax for the vehicle you’re buying
Correction: You are not lowering the sales price of the car you are buying by negotiating a higher value for your trade; you are lowering the amount of the difference you will have to come up with.
@@leeraymer166 Yes, that is the way you work it. The salesman will try everything in his power to prevent this though. Don't even mention a trade, but that will be the first thing the salesman ask about. Just tell them not to worry about that and work a deal on the vehicle you want to buy. Then you drop the trade on them. Years ago I was looking at buying a new truck and didn't mention the trade until I got a price on the new truck. When I brought it up the salesman said "I wish you had told me that in the beginning". Anyway, they looked over my trade and after some negotiation we settled on what I would take for my old truck. The salesman went back to talk to the sales manager and write up an new deal that included my trade. As I said, this was years ago when you could negotiate deep discounts on a new vehicle. They came back with their new deal and while they did give me my asking price on trade, they had bumped their new truck back up to list price. I called the guy crazy, threw the paper at him, and walked out the door.
Question: What’s the buyer’s benefit on a trade in? There’s a nominal tax advantage but the real benefit would be a lower monthly payment when financing with the dealer? Otherwise you would just put a lump sum on your full sale price loan and then refinance for a lower payment. Thx
My dealer only wanted to give me $14.500 for my F150 4X4 with 118,800 km on it. We had the dealer but it on the auction for 3 hrs and it hit $18,450 I than waited 15 mths for my Ford Maverick to come in. They still gave me the $18,450. Ford also gave me the Maverick for the same price as the 2022 price as the one o did get was a 2023 I got $5850;off the 2023 Maverick so got it cheaper than the 2022 model Very happy with my dealer they sold my trade in in 2 days sold it for $21,500 they made some on it.
I told my father a frequent leaser, that next time to go and see how much Carmax or another dealer will pay you for the leased car. My thought was that, hell, go and sell it to them, get the difference from what the original lease dealer would pay and then go get a new lease, after pocketing the extra. I did some research and found that his Lexus was going for $5-7K more than just turning in the car to the Lease Dealer.
I will be trading in my wife’s car near end of the year, I know that the dealers wont be generous with one but I typically use the KBB trade in price for what I want. I will accept more but will not go below, will walk away from deal unless I get it. Two cars ago I used this method they came in 1/2 that with all kinds of excuses why it was worth their number. I told them my favorite line “I don’t need a car I would like a car so have no issues walking away”. Sales person wouldn’t budge so I stood up extended my hand and said have a great day…guess what supervisor gave me my number.
Best way to calculate your dealer trade in ACV in Vegas is to look up the KBB trade in value in poor condition. That's what the dealer is going to offer. You might be able to talk them up to fair condition value, but that's it. My cars are always in immaculate condition. Trade values are for beaters in need of tons of recon or that need to be wholesaled. It's for this reason, I always sell my cars myself. I've never had to list a car for longer than 2 weeks because I price them accurately and like I said, keep them immaculate.
5 years ago I traded a car. KBB gave me an estimate value of around $4.500 as the sedan was 12 years old. A mechanic at the Nissan Dealer offered me $1,800 and I declined. The offer made was low on account that I needed new tires to start so that was $600, I needed new brakes and I had a problem with the rack n pinion which was going to cost $1700. Water was also getting into the back seats whenever it rain. I was looking to get 3,500 as a trade in. The dealer offered me 3K and I took it since the car needed a lot of work. It was year end and they gave me a great lease deal in 2018. There were MF incentives at the time as well as dealer incentives. When my lease was up in 2021 the market value was way higher than the residual value by around $10K. I ended up doing the lease buy out which dealer was not happy as they wanted the car back to cash in on the market rise on used cars.
Thx guys! Good info. I’m ordering a new BMW M440i xDrive next week, and will trade in my paid-in-full Bimmer as part of the down payment. Mgr. took a quick look, and told me what he thought was its trade-in value. Carmax comps (same model, year, equipment) were all $5-$8k higher. I’ll take those screen captures in with me next week to help us arrive at a better #. Thanks again, info is priceless. Forewarned is forearmed.
It comes down to 2 things... keep the customer excited about the car they are going to buy AND keep that 4-square working in your favor so that you can get them at their monthly payment and any downpayment. Once you have that, the customer will forget or get confused about the trade-in value. Never trade in unless you can get a very fair amount (do your research). Remember YOU the customer has no obligation or incentive to buy a car and consumers have a lot more choices now, like just taking Uber without owning. On the other hand, the sales persona and the Dealership ABSOLUTELY HAS to sell cars in order to stay in business AND get allocation from the factory for new vehicles. SO... no trade and be willing to walk out anytime. Once you do that YOU have the upper hand.
I always get an offer from Carmax because they tend to offer way more than anywhere else then when a dealer shorts me an offer 3-4k less than carmax i pull out their offer and make them beat/match it
Not true, traded in 6 and carmax was never the highest....cpl tines they were close but it really depends.....why you get appraisals from more than 1 or 2....carvana was the best but they have also been low too.... Actually had dealers paying most if I was buying from them as well....but it won't always be the case Minimum of 5 appraisals to get the most for your vehicle
Most dealers at least here in my state NY are not even willing to negotiate the price of trade in once they see what carvana is offering you. They straight up tell you to sell it to carvana.
In many states you can still get the tax benefit of reducing the sales taxable amount by the “trade-in” if you sell your old car yourself within a few weeks of the new car purchase. It is not as convenient as trading in at the dealership, but in many cases you’ll make out hundreds if not thousands of dollars better off. The easiest way is to sell your old car first before buying the new car, use the proceeds as down payment on it, and then register the new car yourself, showing the old car sale as “trade-in”. (You pay the tax during the registration process. The seller doesn’t need to collect the tax if they won’t be registering it)
Be warned, some dealerships are throwing in a MUST TRADE clause into their trade-in policies. You settle on the OTD price, they make an offer on your trade-in and REQUIRE you to take it or they won't let you buy the car. I had a 2023 Corolla Cross Hybrid deal fall apart because I wouldn't take their lowball trade-in offer. I offered to buy the car without the trade and they said no.
I'll probably never trade in a vehicle again, I'm in oregon and they always lowball even using kbbs real value and I meet all their specific criteria for a valuable trade in. You can always make more through a private party
I just traded my vehicle in at a local dealership here in Florida, I was offered almost $4k more than the KBB value said it was. Best decision ever!! And no I did not pay $4k over the MSRP!
I just bought a new car. I presented the dealer with a CarMax online offer. They matched it and took care of bringing my car to CarMax. Just be sure to be ready to buy when you get your CarMax offer. It expires in 7 days and the price may drop once that expires.
I had a 2020 F450 lariat loaded out and was going to trade it in for a platinum model. Truck had 3,200 miles on it flawless. Sales manager came out with a 64k trade offer and I laughed at him and asked how he got that number. They used KBB and priced the truck as a base model. I said good, then give me that platinum out the door as a base model. He got argumentative and I told him to shove it and kept my truck.
I also was told at a dealer once that they do not use KKB, that it was outdated and no longer used. That the dealers use an internal source for up to date values of real trade in amounts. Years later, I sold a car through a cash offer affiliated dealer via the KKB price and they claimed that's what they use. So in other words, some dealers are lying scumbags out to screw you.
That could actually be true. There are many online vehicle value sites besides KBB. Also lots of bigger dealers use their own software to value trades. There are still lots of dealers that are lying scumbags though.
Hey Car Edge - One of the things I've done when figuring the value of my car, is going on line and shopping for one just like mine (in my region). I find several examples to get a range. Feels like all the on-line "valuations" (Carvana, et. al.) I've seen are pretty lowball. For my current vehicle in play, I've had one dealer tell me 6K, and had on-line values from 2950-6900. Okay, I get it that when a dealer has to take in my car, do their inspection and refurb, handle paperwork, and hold in inventory, there is a cost. BUT when I shop for a clone of my car on line (with similar mileage, same exact year, model, equipment, trim), I find them with asking prices of 13-14K. I understand that this is an ASKING price, but even if the dealer paid 6K and came down to 11-12, that is still a 5-6K gross profit, and maybe a 4-5k net. That is a probably as much or more than they are making on the new car they sold me. Still feels like a colossal rip off. In my range, the sales tax reduction is going to net me maybe $ 500 in my state (9.2). And that has nothing to do with the dealer's profit. So, if you have the stomach for it, selling on your own is still a better financial option. I was fortunate on my last two cars to personally know people who wanted to buy them. Think we both came out okay. They got to buy from original owner with all records and history,. I got a price higher than trade-in value and they got if for less than if they had bought from a dealer. Yeah, they got it "as is.", but I told them what I knew. Feels like a very pricy luxury to not have to deal with selling your car, but it goes down easier when lumped into your monthly payment. Am I missing something here? Feels like I could perhaps sell to a private party for 9-10K, and we'd both be money ahead. Granted, the logistics are more challenging. I could swallow not getting max for my trade if I didn't feel like I was getting royally screwed, I get it that the dealer has to make some profit and is taking some risk, and there is the convenience of just handing them your keys and getting your belongings out of the car. But this vast gap between their wholesale price trade-in offer and what I'd be asked to pay to buy my old car back a month later is ridiculous. Feels like they have built in worst case scenarios for what they'll have to fix when they offer you the number. Nobody at a dealership ever asked for my maintenance records, so no bonus for staying current on that.
In my Experience any cash offers from dealers (online or otherwise) was a lowball offer. I traded in my first vehicle back last summer. I used to always keep my old vehicle and private sale it, but trying to sell my last vehicle was a nightmare. People wanting you to hold the car until they can secure financing, wanting you to finance, and people not showing up when they say they are. It seems all the crazies come out of the woodwork when you list a used vehicle online these days. For my trade I did my research beforehand and knew what the truck was worth, they offered me what I thought was a fair trade. I know they have to make money so I wasn't expecting a retail offer, but by the time you figured in the tax savings I thought it was a fair deal.
I consider myself fairly knowledgeable about car buying (and trades), but I still learned even more with this video! I'm going tomorrow to trade my 2016 Toyota 4Runner Trail for a 2024 Toyota Tundra Limited... we'll see how well this helps with my negotiation. :) [And I'm definitely following you guys now!]
Last time I traded a vehicle in, they tried multiple times to spin the tax credit as them giving more for the traded in. I almost walked after a 3rd salesman/manager said it. No, it's from the government, not your pockets.
Not to defend any dealer, but they did have a point. If you sell it yourself, you have to get their trade in offer plus the tax rate to be in the black. But yeah, it's the government giving you a break, not the dealer....
That's kind of like when I got into a argument with a salesman about their $600 doc fee. He tried to tell me that was what it cost to get the tags and title, then I pointed out to him on the invoice that their was a separate line item already on the invoice for the actual cost of the tags and title. He then said that is what it cost for them to do the paperwork. I've been to the DMV myself to get tags and titles, it doesn't cost $600 to do the paperwork, it's one form that may take 5 minutes to fill out if you're really slow, and the dealership don't even have to do that, they just take 2 minutes to punch it into a computer and don't have to go anywhere.
I know that you guys like to use trade-in-able vehicles but what if you have a car that you know that the dealer won’t even try to sell on their lot? One that has a few cosmetic issues but is solid mechanically? How do you come up with your number?
Truly, the trade in has been the way to make the whole deal (even when paying over on the vehicle you want) work in your favor during these last couple of years.
Yep... I got 100% of the money I paid for my trade F150 (2018, 60,000 miles) and 75% on my Camry (2018, 95,000) plus tax benefit. I MAY have done better selling them but it's a big MAYBE.
My car dealer was more then willing to steal my 2017 honda accord. they called me up two years ago and told me they wanted to buy back my car because there is a lot of people looking for my car. I decided to humor the guy and see what kind of deal he has cooked up for me. well. lets just say he didn't have a car in mind for the deal that he called me in for. I told him; I'm not giving up my only car. he tried upgrading me to a new car. I told him. whatever my car is worth +10k that that is all i am willing to spend on a car. no more or less. He told me my car value is worth 10k. He came up with a nice car within my price range, but when it came time to discussing the out the door price on this new car. He tacked on an inflation fee of 10k on top of the out the door price. so the car he showed me was outside my price range. Like what kind of bs is that? I told him. I'm keeping my car. I'm not giving you my car for free while your trying to stick me back on car payment and I left.
I've always taken great care of my cars as I did car cleaning/waxing throughout my college years. A dealer said to me, "We don't see many trades like this...". Now my car winters in Florida so when I trade it in up north I point that out. What is the incentive in putting all the effort into keeping a vehicle if they are just going to give me a trade in value without even looking at the vehicle? I would never do that and if they try it, I'm gone.
If you truly take care of your vehicles and are willing to do a bit of work sell it yourself. Be prepared for the bs. Give yourself time to sell it. Dont wait til the last minute. The right buyer will come along and you will benefit vs trading. Ive never once traded a vehicle in. Always get a quote when buying,which is generally 25 to 40 % below retail. Your just giving them cash when u trade
I can tell you, I won out in recent trades at a new car dealer. These times are different and I made a win. These brackish waters the industry is in / confusion makes it possible..... Time to off load in some areas to elimate risk and get something new...Been buying cars for years and had a major recent win.....
One dealership looked my car over and according to them so many things were wrong with my car. I told them give me my keys and I was out of there. I’m still driving my mazda6 after 8yrs with no problems.
IMHO it's about total cost. Dealers will always try to screw you on a trade-in. Best you can do is know the value of your used vehicle. Unbiased, preferably (including your take on the value) Then you need to understand the value of the vehicle you want. It's all a part of the negotiation. Ages ago, I knew a dealer was going to lowball me on the trade-in value of my vehicle. It was a pain in the butt but I knew the actual invoice of the vehicle I was getting. At the time I could - and did - go for just slightly (like $200) over invoice because I knew they'd lowball the trade in. But the focus really was the 'total cost'. I knew I should not pay more than _____ on the vehicle, and the trade-in was a part of that equation.
You've also got to be careful with dealer invoices. Often times the dealer will show you the invoice, but what they fail to tell you is they often get rebates and cash back from the manufacturer after the sale. I good friend of mine used to work at a local new car dealer. He told me that they never sold a new vehicle without making at least $5k, while making you think they were making $500 or less. That was years ago, the minimum profit now is probably closer to $10k now.
Trying to understand, so take this example. You sold your trade-in to CarMax at a great price. Once you got the OTD price and settled on a deal with the dealership on your new vehicle, does that deal have a hefty price tag in the end since you may not have factored in a down payment at the time? Most trade-ins are used as a down payment. The plus side of that is once you got your check from CarMax, you can put all of that on your next new vehicle payment and that will bring the loan amount down. Do I understand it correctly?
Yes and no, yes if you own the car your trading completely you can use all that money as a down payment (you need the title) On to the No side of the coin is if you still have a loan say 15k and the cars worth 12k. You are 3k under water. So 3000 gets added to your new car total Now let’s say you have a loan with 15k and the cars worth 20k your are up $5k on your loan so that will get applied if you wanted
2019 Honda Ridgeline 44154 miles, original owner in great condition. As of Jan 24, 2024, Carmax offered 23k for it. A local Honda dealer offered me 24k. Going to get more estimates later this week. I am thinking about selling the car myself. The vehicle is located in California.
It seems like the dealer is gonna play games with the sales price of the new car as well that factors into their offer for your used car. In other words, they might offer a high price for your used car, but not give you many discounts on the new car. Or, they may give you discounts on the new car and not much for your used car....
@@garfieldsmith332 But, I suppose I forgot what these guys taught us first. Negotiate the "out the door price/no trade", then talk about the trade in. Of course, the salesman will probably grill you on whether or not you have a trade before negotiations begin I guess
Usually when i go get "get a new car" its because my current car usually needs more work than what the car is worth. Like my well used 2010 honda civic hybrid needs a new hvac unit with clutch. Parts alone are almost what the car KBB values at (with current condition of car)
Took my wife’s 2017 Chevy Cruze with 40k miles to a local dealership a few years ago and they offered me $6500. I just looked at him said no thanks, walked out the door and did a private sale for much more.
Maybe for a future story….we have a local Kia dealer who advertises prices that are $2000 less than the actual sale price noted in the fine print. There has recently been a management change and now they list market adjustments..example for a Forte: MSRP:$21,785 Market Adjustment:+2,000😮 Final Price:$23,785 Yikes!
I found that the dealer was giving me a trade in value for a Jeep Wrangler JKU Sport when my Wrangler was a Rubicon. I found this out when I asked them to see the document they were basing the value on. Caught them trying to screw me so walked out the door and went to the dealer cross town.
I get information from Kelly Blue book on pricing on the internet, and get Carmax to quote my car for trade in. Between those two sources, I'll work with the dealer to see if they will beat my numbers (without me telling them). If they are under my estimate, I'll show them the carmax paperwork and ask them to match. If they wont, I'll trade with Car Max and use the money to buy the new vehicle. I will do a calculation of the sales tax savings for trading in if its close and I may accept an offer lower than the Carmax quote only if the tax advantages out weigh the difference in quote.
For the all the genius’s out there Keep your info to yourself, get the dealers number first and go from there. Combative negotiating just make things more tense. If you want to go thru the hassle and it makes sense sell before you ever get to the dealer. Remember though the dealer wants your nice trade, they’re also selling you something so it makes sense that they would like a happy customer. The kid likes to stir it up but the old man knows.
My car is worth "right now" ...mileage, age, features and condition $14k...THATS the information you take to the dealer...its a fact they cannot ignore.
I went to a dealer that was 3,500 under my Carvana offer. He countered that Carvana can change their minds and I told him they didn’t on my previous sale to them. I’m in KY and they must have changed the trade in tax savings laws because they said they do it here.
Can you do a segment that will help us deal with car dealers who watch your videos and prepare for us coming in with all you invaluable info and advise?
You guys are awesome!!! I am shopping for a used Lexus RX 350 2016- 2020. I want to pay cash but I will finance just just get the incentives. I am in Miami Florida
We recently took our 2018 BMW X3 that we got a KBB appraisal of $26,000 prior to going to the dealer. The dealer offered us $19,000 and told us it was based off of a fair condition- The car is immaculate and only has 43000 miles. They wouldn't budge. $19k or take it to Carmax was our choice. Needless to say, we didn't get the car.
In Missouri you get the Sales Tax credit no matter where it's sold. You just have to show you sold the car within 6 months on a bill of sale and take off the car you're registering.
Thanks guys, well done. I have a nice 4Runner but it’s a 2010 and it’s in great shape, only some paint chips on the nose from a stupid gravel truck. I love it but I want/need a truck. I want to trade it in bc I don’t want to mess with selling it private and have to hurry up and find/buy a vehicle in order to drive. I have a 780 credit score plus my trade in value and how much I’ve paid on the loan, like 3.5yrs. I think I will trade it in for a truck if I can find one in my price range but trucks are outrageous anymore. I probably can’t afford anything newer than a 2013 or something. It’s ridiculous. My brother in laws Tundra is 75k.
All the car offer sites said mine was worth 50k. I told my dealership I was willing to trade for a new car they had that had been on the lot for 106 days but I needed more. After beating them over the head and playing them against other dealers for several days they finally relented and allowed 54k for my trade. That was the absolute most I could get out of them but hey 4 grand is 4 grand.
Do not take your used car to the dealer. Work out the OTD price and then work out a trade value after you have researched what the market value of your car is.
That's easier said than done. I'm a single 73 YO woman and having no car in the interim as well as dealing with people looking at the car is not so smart. @@1-Wheel-Drive
You need to make it a win win. Get all the money for your trade at the dealership but also alow the dealership to make money selling you the car. A win for you and a win for the dealership. You can’t be greedy by wanting the dealership to sell you the new car at a loss and expect to get all the money for your trade.
@@InternetUser._you'd be hard pressed to find a TSX for 8k with less than 100k miles on it, if you find it let me know. Also even blackbook lists it for 9600 and blackbook is know to lowball everything.
You don't mention that there 3 different values, trade-in, wholesale and retail. The make model, year and color also plays into it as well as how many are on the market. I personally would sell my car and not trade it as,I would get the highest value for it. You still making payments on your trade then it gets into equity and length of financing, you always owe more than its worth. Car dealership also makes money off the loan through their deals with the many banks, they do business with. People should always arrange their own financing and see what rate they qualify for . So many variables
They often say "If you don't take our trade-in offer, then you won't get the tax benefit because you have to trade-in at the same place you buy the car" So the flip they leverage back on you. So the only choice is to walk out and have them beg for you to come back.
My state has a different sales tax scenario. If the car is brand new then you get the credit of sales tax on trade if. if buying a used car then you have to pay the sales tax on the entire price of the car even if you have a trade in
i literally walked into the dealer and said i pay that much and i want that much for my trade! they gave me a low ball offer and i walked! They called me a week later ( closer to a quarters end) if i could come back in? I said sure! Then instead of being $5000 apart we came closer to about $2000. I walked again, said call me when i get what i want! They called me on 3.31st at noon to do the deal! I was very proud of myself and still happy with the deal i made!
Yup - always be prepared to walk away.
I just went to a dealership and used some of the information and caught the salesman fumbling his nonsense and admitting to things I caught him lying about. This channel is amazing.
I used Car Gurus to find a new 2023 Hyundai Sonata Hybrid listed for $2,000 below MSRP. I contacted the dealer, confirmed they had the car and then used their website to determine the sales price was $2,000 below MSRP, a value they would pay for my trade (they offered over 5K online) with me inflating the mileage the car had and saying it had cosmetic damage when it doesn't. I drove two hours to the dealer, test drove the Sonata while they appraised my trade in. After the test drive they said "corporate" could only offer $1,000 for my trade and the Sonata was actually full MSRP because the price online included every incentive offered by Hyundai and I only qualified for one. I showed my printed screen shots of emails with the dealer and the quote from their website showing the car in worse shape than it is but valued higher than what they were offering. The sales manager wouldn't budge claiming "corporate" wouldn't let him. I walked out to my trade-in and drove two hours home. I was there because I wanted a new car, not because I needed one. Total waste of time.
I’ve been looking for a new 2024. Here in Orlando there isn’t enough inventory, and the dealerships aren’t budging on price. They make car buying more difficult than it should be. I’ve thought about flying back to Iowa where I’m from and buy a vehicle, then drive to Orlando. I hate buying a new car.
Always go at the end of the month. They are way more motivated to move cars to reach manufacturer incentives.
Pre-covid I was looking in a city 90minutes away. Drove my pickup, but was trying to trade in our car. I had someone take me thru the entire lot, found a car, did the paperwork, but I didn't want to swing the payment. Took 2hrs or so?? As I went to drive away a different salesman literally ran up and offered me 12k on the spot for my truck. I said "Sure!" They said they had to verify it, but someone had literally just called looking for what i was driving. An hour later said person never having showed up, I was told my truck didn't have a clean title, which it does according to my paperwork and the dealer I bought it from, and they could only give me 4k...felt scammy. Day wasted and a ton of stress about my trucks history added to my life.
@@13alejandre and later in the evening so they are ready to go home. They are motivated to finish the sale before you leave.
Michigan has a tax trade credit so it does help
We bought a used SUV recently, and the dealer we bought it from lowballed our trade in at a ridiculous amount. We simply bought the SUV w/o a trade and got a much better cash buy offer at a different dealer. Was extra steps but ended up worth it.
Most of my trade-in were worn out, so I was just glad to get rid of them!
I just got rid of one, they gave me 12500 usd, I almost fell over and couldn't sign fast enough.
@@jolkraeremeark6949 must be a truck
@@jolkraeremeark6949what was it?
Recently had a bad experience trying to buy a ‘used’ car using my current car as a ‘trade in’. The dealer low balled the value of my car (compared to Kelly and Edmunds) as expected; and then increased the price of the car I was interested in by $1K more than it was listed for on their website! -> How can they get away with this? - Simple, it’s their dealership, their cars and their terms. YOU HAVE to be prepared to walk out at any point during negotiations.
And you must do some research on vehicle pricing PRIOR to going shopping. Yes ‘time is money’ and if you want to save some money you gotta put in some time. So much can be learned from the internet these days. Good luck to all and try not to get discouraged. 🤞
This channel is one of the most important out there. Well done gentlemen.
Thank you. Read this just before buying a new car and came out $6000 better than I expected.
Beyond the educational value of your videos the entertainment is great as well. Y'all have such a great dynamic and it's so easy to watch. Every video is captivating.
This just happened to me. I made the mistake of not looking up my car value before I went in. They offered a ridiculous price on my trade in and that ended the conversation. I would rather set my car on fire than allow you to steal it from me. This also gave me time to reflect on the new car and realize my old one is actually nicer.
I think that not everyone is out to steal your trade in. Easy way would be to check with multiple sources that would buy your car and bounce that against what the dealer is offering. I valued my 2017 Ford Focus SEL Hatchback at $9K . Carmax offered $9600. Dealer without any prompting offered $10K. Since I purchased the vehicle new and my out of pocket costs were $15K, I did not feel like the dealer was trying to steal the trade in. I purchased a Chevy Equinox Premier and the out the door price was under 37K. Overall very happy going with the dealer trade in.
You paid alot for the Equinox.
Excellent information that I can confirm. My last 2 car purchases were in 2017 and 2019. Both purchases were at the same dealership. In both instances I took my trade-in's to my local Carmax Dealership, where they inspected the vehicles. I left with printed offers to purchase in hand. After the new car dealership was finished with their attempts to buy my cars at rediculously low prices, I produced the Carmax offers. By the looks on their faces, they were not thrilled, to put it mildly, with my tatic, but they matched the Carmax offers. Also, I reside in Florida and can confirm the taxable amount of the purchase is reduced by the trade-in value. I appreciate your commentary regarding the dealership "stealing" my trade-in. I only consider it stealing, if the used car manager has a gun to my head. 🤣🤣 Otherwise, it's a mutually agreed upon contract for sale. Ray, you don't happen to have a concealed carry permit? Do you? 😉😉🤪👍😎✌
Your comment just proves that people who sell their used cars are just as shady as the dealerships.
Stealing is stealing:/
All 100% correct info, based on my years of selling vehicles. Sometimes your trade in offer will hinge on the mood of the day of the sales manager. If he is feeling bitter and tight fisted that day, you might get a lower offer than if he's feeling great that day. Get all the online offers first 100%. I'd totally ignore KBB and NADA. Their estimated trade values are often wildly off base.
Great video and I think it’s safe to say that Caredge will take over as the premier 1 stop shop for car buying 👌🏼
What I get a kick out of on the dealership lot is when they have new vehicles that have been on the lot for over 200 days because they are greedy to not break on the price, but then put on the truck $3k off the MSRP and still can't sell it. Why because they won't break on the actual price of the truck. A dealership has a little lead way between the MSRP and dealer invoice price (DIP) to give the customer a little break on the vehicle for the customer to see that they getting a deal with something off plus the rebate. The trade in the dealer always tries to screw the customer and a lot of customers really don't realize that and they think they are getting a good trade in and really the dealer gives them about a $1k to $1500 less than what they should have gotten.
In my area the new car dealers do not try to sell their trade-ins.
They immediately either send them off to auction or they sell them to a regular used car broker.
They dont run a used car section at the dealership any more. They might keep a few of the higher value vehicles on their lot for resale but most are shipped out right away.
Great advice, thanks! Our Tesla & MINI dealerships were our BEST EVER shopping & purchasing experiences! Yes a business making their profit, we expect this from all retail. But zero bs interaction, civil negotiation, & simple financing paperwork. Why are some dealerships just gross?! I walk out as soon as I sense uneasiness from the salespeople’s desperate energy.
Almost exactly what I did. I knew the value of my truck. Multiple sources checked. The truck was in pristine condition. Not a mark on it , less than 8k miles, well equipped. Recent first oil change and the service department couldn't believe it was 1.5 years old. A bath and it looks brand new. I wound up selling it to my dad at the high trade in plus tax savings. Dealer was a little disappointed.
Nissan Frontier with the long bed comes standard with the tow package. Hard to find the long bed in crew cab. I don't think most people realize the long bed is available. I haul stuff.
The major problem is what you guys touched on in #2 with the 'sales tax basis benefit' in most states. With the way its calculated now, it allows dealers to lowball you and collect the net on the sales tax for themselves. In the internet age, you should be able to sell your car to Carvana, buy a new car from a dealer, and be able to get the same sales tax benefit - maybe you have to recoup it when you file your taxes but you should still be able to do it somehow. Since you can't, dealers know they can look at your Carvana offer and collect the sales tax benefit for themselves by low balling you for the difference.
What kind of crank do you guys smoke? If you trade it in, you pay sales tax on the difference. If you sell to a third party, the third party is responsible for the sales tax on the car you sold, and you would pay sales tax on the full price you bought on car from the dealer. In other words, if you trade it in that is one transaction. If you sell to a third party, and buy separately, that is two separate transactions that are not connected.
@@tommak6516Not in every state. In CA, even if you trade in your car, you get zero tax benefit. So if u trade in 30K car, and buy 50K car from the same dealer as one transaction, we still pay full sales tax on 50K…really bad.
@@1-Wheel-Drive That doesn't work in my state of TN.
I would argue the worst thing you can do is muddy the negotiation waters with a trade in. In this day and age of being able to get decent cash offers from many different used car franchises, it makes sense to simply sell to them (if you aren't comfortable selling private party). This way when you negotiate on the car you are buying, the only numbers to work out are the sale price, loan interest rate, and then any BS fees/add-ons/markups, etc which she be as close to $0 as possible.
That’s why you negotiate the OTD price before you let them have the opportunity to bid for your trade. I say bid because you’re certainly not obligated to trade in your vehicle. I usually do because I pre negotiate the OTD price and tell them I don’t have a trade in even if I do until I have the bottom line price negotiated. At that point, I pull out the best written offer that I received and get the dealer to match that. Once they match the highest offer I would have gotten from Carmax, Vroom, etc, I then make the deal and bring down the sale price of the vehicle and lower the sales tax of the vehicle by the same amount. When you combine these two figures, you will almost always come out ahead by using your current vehicle’s equity to lower the drive out price than by selling privately and paying full price including full sales tax for the vehicle you’re buying
Correction: You are not lowering the sales price of the car you are buying by negotiating a higher value for your trade; you are lowering the amount of the difference you will have to come up with.
@@leeraymer166 Yes, that is the way you work it. The salesman will try everything in his power to prevent this though. Don't even mention a trade, but that will be the first thing the salesman ask about. Just tell them not to worry about that and work a deal on the vehicle you want to buy. Then you drop the trade on them.
Years ago I was looking at buying a new truck and didn't mention the trade until I got a price on the new truck. When I brought it up the salesman said "I wish you had told me that in the beginning". Anyway, they looked over my trade and after some negotiation we settled on what I would take for my old truck. The salesman went back to talk to the sales manager and write up an new deal that included my trade. As I said, this was years ago when you could negotiate deep discounts on a new vehicle. They came back with their new deal and while they did give me my asking price on trade, they had bumped their new truck back up to list price. I called the guy crazy, threw the paper at him, and walked out the door.
Question: What’s the buyer’s benefit on a trade in? There’s a nominal tax advantage but the real benefit would be a lower monthly payment when financing with the dealer? Otherwise you would just put a lump sum on your full sale price loan and then refinance for a lower payment. Thx
My dealer only wanted to give me $14.500 for my F150 4X4 with 118,800 km on it. We had the dealer but it on the auction for 3 hrs and it hit $18,450 I than waited 15 mths for my Ford Maverick to come in. They still gave me the $18,450. Ford also gave me the Maverick for the same price as the 2022 price as the one o did get was a 2023 I got $5850;off the 2023 Maverick so got it cheaper than the 2022 model Very happy with my dealer they sold my trade in in 2 days sold it for $21,500 they made some on it.
I told my father a frequent leaser, that next time to go and see how much Carmax or another dealer will pay you for the leased car. My thought was that, hell, go and sell it to them, get the difference from what the original lease dealer would pay and then go get a new lease, after pocketing the extra. I did some research and found that his Lexus was going for $5-7K more than just turning in the car to the Lease Dealer.
I will be trading in my wife’s car near end of the year, I know that the dealers wont be generous with one but I typically use the KBB trade in price for what I want. I will accept more but will not go below, will walk away from deal unless I get it. Two cars ago I used this method they came in 1/2 that with all kinds of excuses why it was worth their number. I told them my favorite line “I don’t need a car I would like a car so have no issues walking away”. Sales person wouldn’t budge so I stood up extended my hand and said have a great day…guess what supervisor gave me my number.
Best way to calculate your dealer trade in ACV in Vegas is to look up the KBB trade in value in poor condition. That's what the dealer is going to offer. You might be able to talk them up to fair condition value, but that's it. My cars are always in immaculate condition. Trade values are for beaters in need of tons of recon or that need to be wholesaled. It's for this reason, I always sell my cars myself. I've never had to list a car for longer than 2 weeks because I price them accurately and like I said, keep them immaculate.
People dont usually get rid of cars in immaculate shape.
Amazing channel! Love the storytelling and panel animations
I never trade a car in but I rarely buy a vehicle from a dealer either. Great info though and thanks for sharing your knowledge and experience.
by a vehicle
5 years ago I traded a car. KBB gave me an estimate value of around $4.500 as the sedan was 12 years old. A mechanic at the Nissan Dealer offered me $1,800 and I declined. The offer made was low on account that I needed new tires to start so that was $600, I needed new brakes and I had a problem with the rack n pinion which was going to cost $1700. Water was also getting into the back seats whenever it rain. I was looking to get 3,500 as a trade in. The dealer offered me 3K and I took it since the car needed a lot of work. It was year end and they gave me a great lease deal in 2018. There were MF incentives at the time as well as dealer incentives. When my lease was up in 2021 the market value was way higher than the residual value by around $10K. I ended up doing the lease buy out which dealer was not happy as they wanted the car back to cash in on the market rise on used cars.
Tks for sharing
You made a mistake. You would have got cash back in your pocket while enjoying a new car at a similar lease payment.
This is one of the best ones you guys have done in a LONG time! I assume that it's expensive/difficult/impossible for a buyer to get VAuto Access?
👍
Thx guys! Good info. I’m ordering a new BMW M440i xDrive next week, and will trade in my paid-in-full Bimmer as part of the down payment. Mgr. took a quick look, and told me what he thought was its trade-in value. Carmax comps (same model, year, equipment) were all $5-$8k higher. I’ll take those screen captures in with me next week to help us arrive at a better #. Thanks again, info is priceless.
Forewarned is forearmed.
It comes down to 2 things... keep the customer excited about the car they are going to buy AND keep that 4-square working in your favor so that you can get them at their monthly payment and any downpayment. Once you have that, the customer will forget or get confused about the trade-in value.
Never trade in unless you can get a very fair amount (do your research).
Remember YOU the customer has no obligation or incentive to buy a car and consumers have a lot more choices now, like just taking Uber without owning. On the other hand, the sales persona and the Dealership ABSOLUTELY HAS to sell cars in order to stay in business AND get allocation from the factory for new vehicles. SO... no trade and be willing to walk out anytime. Once you do that YOU have the upper hand.
I always get an offer from Carmax because they tend to offer way more than anywhere else then when a dealer shorts me an offer 3-4k less than carmax i pull out their offer and make them beat/match it
Play them all against each other always for the best number
Not true, traded in 6 and carmax was never the highest....cpl tines they were close but it really depends.....why you get appraisals from more than 1 or 2....carvana was the best but they have also been low too....
Actually had dealers paying most if I was buying from them as well....but it won't always be the case
Minimum of 5 appraisals to get the most for your vehicle
Most dealers at least here in my state NY are not even willing to negotiate the price of trade in once they see what carvana is offering you. They straight up tell you to sell it to carvana.
Interesting.
That's exactly what happened to me. The sales manager laughed me out of his office.
I wish I can facetime your dad and ask a few questions. I learned so much in just a few hours. Bless him!
In many states you can still get the tax benefit of reducing the sales taxable amount by the “trade-in” if you sell your old car yourself within a few weeks of the new car purchase. It is not as convenient as trading in at the dealership, but in many cases you’ll make out hundreds if not thousands of dollars better off. The easiest way is to sell your old car first before buying the new car, use the proceeds as down payment on it, and then register the new car yourself, showing the old car sale as “trade-in”. (You pay the tax during the registration process. The seller doesn’t need to collect the tax if they won’t be registering it)
I love pops! I want to rent him for when I go car shopping! He is awesome!
I just want to say that after joining your community anytime I post a question I get such a quick response. Thank you!
Be warned, some dealerships are throwing in a MUST TRADE clause into their trade-in policies.
You settle on the OTD price, they make an offer on your trade-in and REQUIRE you to take it or they won't let you buy the car.
I had a 2023 Corolla Cross Hybrid deal fall apart because I wouldn't take their lowball trade-in offer. I offered to buy the car without the trade and they said no.
Does this policy also apply to parents that are only buying a new car because they are giving the family car to their kid heading off to college?
Good, then f them. Remember: They NEED to sell a car, more than you NEED to buy one.
That's crazy, I'd walk too. Some people honestly don't have a vehicle to trade.
Then you just walk. If they don't want to make a sale that day, let someone else in town make the deal.
If you live in a state which does not give you a sales tax credit, like California, don't trade your vehicle, sell it yourself.
I'll probably never trade in a vehicle again, I'm in oregon and they always lowball even using kbbs real value and I meet all their specific criteria for a valuable trade in. You can always make more through a private party
I just traded my vehicle in at a local dealership here in Florida, I was offered almost $4k more than the KBB value said it was. Best decision ever!! And no I did not pay $4k over the MSRP!
I'm in the burbs of NY. It's hard selling your car. There too many assholes trying to chew you down.
@@melsyr10 Did the dealership then turn around and sell you the new car for 5k more than it was worth? Lol
@@melsyr10You probably got fleeced on the sale.
I just bought a new car. I presented the dealer with a CarMax online offer. They matched it and took care of bringing my car to CarMax. Just be sure to be ready to buy when you get your CarMax offer. It expires in 7 days and the price may drop once that expires.
I had a 2020 F450 lariat loaded out and was going to trade it in for a platinum model. Truck had 3,200 miles on it flawless. Sales manager came out with a 64k trade offer and I laughed at him and asked how he got that number. They used KBB and priced the truck as a base model. I said good, then give me that platinum out the door as a base model. He got argumentative and I told him to shove it and kept my truck.
I also was told at a dealer once that they do not use KKB, that it was outdated and no longer used. That the dealers use an internal source for up to date values of real trade in amounts. Years later, I sold a car through a cash offer affiliated dealer via the KKB price and they claimed that's what they use. So in other words, some dealers are lying scumbags out to screw you.
I am getting the impression that dealers are liars and are programmed to discount everything the customers says.
Some***????
That could actually be true. There are many online vehicle value sites besides KBB. Also lots of bigger dealers use their own software to value trades. There are still lots of dealers that are lying scumbags though.
Hey Car Edge - One of the things I've done when figuring the value of my car, is going on line and shopping for one just like mine (in my region). I find several examples to get a range. Feels like all the on-line "valuations" (Carvana, et. al.) I've seen are pretty lowball. For my current vehicle in play, I've had one dealer tell me 6K, and had on-line values from 2950-6900. Okay, I get it that when a dealer has to take in my car, do their inspection and refurb, handle paperwork, and hold in inventory, there is a cost. BUT when I shop for a clone of my car on line (with similar mileage, same exact year, model, equipment, trim), I find them with asking prices of 13-14K. I understand that this is an ASKING price, but even if the dealer paid 6K and came down to 11-12, that is still a 5-6K gross profit, and maybe a 4-5k net. That is a probably as much or more than they are making on the new car they sold me. Still feels like a colossal rip off. In my range, the sales tax reduction is going to net me maybe $ 500 in my state (9.2). And that has nothing to do with the dealer's profit. So, if you have the stomach for it, selling on your own is still a better financial option. I was fortunate on my last two cars to personally know people who wanted to buy them. Think we both came out okay. They got to buy from original owner with all records and history,. I got a price higher than trade-in value and they got if for less than if they had bought from a dealer. Yeah, they got it "as is.", but I told them what I knew. Feels like a very pricy luxury to not have to deal with selling your car, but it goes down easier when lumped into your monthly payment. Am I missing something here? Feels like I could perhaps sell to a private party for 9-10K, and we'd both be money ahead. Granted, the logistics are more challenging. I could swallow not getting max for my trade if I didn't feel like I was getting royally screwed, I get it that the dealer has to make some profit and is taking some risk, and there is the convenience of just handing them your keys and getting your belongings out of the car. But this vast gap between their wholesale price trade-in offer and what I'd be asked to pay to buy my old car back a month later is ridiculous. Feels like they have built in worst case scenarios for what they'll have to fix when they offer you the number. Nobody at a dealership ever asked for my maintenance records, so no bonus for staying current on that.
In my Experience any cash offers from dealers (online or otherwise) was a lowball offer.
I traded in my first vehicle back last summer. I used to always keep my old vehicle and private sale it, but trying to sell my last vehicle was a nightmare. People wanting you to hold the car until they can secure financing, wanting you to finance, and people not showing up when they say they are. It seems all the crazies come out of the woodwork when you list a used vehicle online these days.
For my trade I did my research beforehand and knew what the truck was worth, they offered me what I thought was a fair trade. I know they have to make money so I wasn't expecting a retail offer, but by the time you figured in the tax savings I thought it was a fair deal.
I consider myself fairly knowledgeable about car buying (and trades), but I still learned even more with this video! I'm going tomorrow to trade my 2016 Toyota 4Runner Trail for a 2024 Toyota Tundra Limited... we'll see how well this helps with my negotiation. :) [And I'm definitely following you guys now!]
You t is so much easier now a days than when 30 years ago the customer had no real idea and didn’t have many sources to go by.
Last time I traded a vehicle in, they tried multiple times to spin the tax credit as them giving more for the traded in. I almost walked after a 3rd salesman/manager said it. No, it's from the government, not your pockets.
Not to defend any dealer, but they did have a point. If you sell it yourself, you have to get their trade in offer plus the tax rate to be in the black. But yeah, it's the government giving you a break, not the dealer....
That's kind of like when I got into a argument with a salesman about their $600 doc fee. He tried to tell me that was what it cost to get the tags and title, then I pointed out to him on the invoice that their was a separate line item already on the invoice for the actual cost of the tags and title. He then said that is what it cost for them to do the paperwork. I've been to the DMV myself to get tags and titles, it doesn't cost $600 to do the paperwork, it's one form that may take 5 minutes to fill out if you're really slow, and the dealership don't even have to do that, they just take 2 minutes to punch it into a computer and don't have to go anywhere.
I know that you guys like to use trade-in-able vehicles but what if you have a car that you know that the dealer won’t even try to sell on their lot? One that has a few cosmetic issues but is solid mechanically? How do you come up with your number?
Truly, the trade in has been the way to make the whole deal (even when paying over on the vehicle you want) work in your favor during these last couple of years.
Yep... I got 100% of the money I paid for my trade F150 (2018, 60,000 miles) and 75% on my Camry (2018, 95,000) plus tax benefit. I MAY have done better selling them but it's a big MAYBE.
My car dealer was more then willing to steal my 2017 honda accord. they called me up two years ago and told me they wanted to buy back my car because there is a lot of people looking for my car. I decided to humor the guy and see what kind of deal he has cooked up for me. well. lets just say he didn't have a car in mind for the deal that he called me in for. I told him; I'm not giving up my only car. he tried upgrading me to a new car. I told him. whatever my car is worth +10k that that is all i am willing to spend on a car. no more or less. He told me my car value is worth 10k. He came up with a nice car within my price range, but when it came time to discussing the out the door price on this new car. He tacked on an inflation fee of 10k on top of the out the door price. so the car he showed me was outside my price range. Like what kind of bs is that?
I told him. I'm keeping my car. I'm not giving you my car for free while your trying to stick me back on car payment and I left.
I've always taken great care of my cars as I did car cleaning/waxing throughout my college years. A dealer said to me, "We don't see many trades like this...". Now my car winters in Florida so when I trade it in up north I point that out. What is the incentive in putting all the effort into keeping a vehicle if they are just going to give me a trade in value without even looking at the vehicle? I would never do that and if they try it, I'm gone.
Amazing work guys! As usual!
If you truly take care of your vehicles and are willing to do a bit of work sell it yourself. Be prepared for the bs. Give yourself time to sell it. Dont wait til the last minute. The right buyer will come along and you will benefit vs trading. Ive never once traded a vehicle in. Always get a quote when buying,which is generally 25 to 40 % below retail. Your just giving them cash when u trade
I can tell you, I won out in recent trades at a new car dealer. These times are different and I made a win. These brackish waters the industry is in / confusion makes it possible..... Time to off load in some areas to elimate risk and get something new...Been buying cars for years and had a major recent win.....
I picked up my new to me truck yesterday. They took my lifter problem 2010 Silverado and gave me big money. I am, however, back in a newer Silverado.
One dealership looked my car over and according to them so many things were wrong with my car. I told them give me my keys and I was out of there. I’m still driving my mazda6 after 8yrs with no problems.
Things have changed dramatically.
I've sold a number of my vehicles on my own. Got the trade in value then checked to see what it was worth via Kelly, etc. Got more for them.
IMHO it's about total cost. Dealers will always try to screw you on a trade-in. Best you can do is know the value of your used vehicle. Unbiased, preferably (including your take on the value) Then you need to understand the value of the vehicle you want. It's all a part of the negotiation. Ages ago, I knew a dealer was going to lowball me on the trade-in value of my vehicle. It was a pain in the butt but I knew the actual invoice of the vehicle I was getting. At the time I could - and did - go for just slightly (like $200) over invoice because I knew they'd lowball the trade in. But the focus really was the 'total cost'. I knew I should not pay more than _____ on the vehicle, and the trade-in was a part of that equation.
You've also got to be careful with dealer invoices. Often times the dealer will show you the invoice, but what they fail to tell you is they often get rebates and cash back from the manufacturer after the sale.
I good friend of mine used to work at a local new car dealer. He told me that they never sold a new vehicle without making at least $5k, while making you think they were making $500 or less. That was years ago, the minimum profit now is probably closer to $10k now.
Don't forget (especially in California) dealers who like to deduct your car's value with "refurbishment fees"
Then turn around and charge the next buyer the refurbishment fee. They’re efffing crooks.
Reiterate that you don’t have to fill out a credit application for them to be able to give you numbers on your trade in.
The last time I bought my truck in NC, the state only taxes the first $30,000.00 of the price of the car or truck you want to buy.
Trying to understand, so take this example. You sold your trade-in to CarMax at a great price. Once you got the OTD price and settled on a deal with the dealership on your new vehicle, does that deal have a hefty price tag in the end since you may not have factored in a down payment at the time? Most trade-ins are used as a down payment. The plus side of that is once you got your check from CarMax, you can put all of that on your next new vehicle payment and that will bring the loan amount down. Do I understand it correctly?
Yes and no, yes if you own the car your trading completely you can use all that money as a down payment (you need the title)
On to the No side of the coin is if you still have a loan say 15k and the cars worth 12k. You are 3k under water. So 3000 gets added to your new car total
Now let’s say you have a loan with 15k and the cars worth 20k your are up $5k on your loan so that will get applied if you wanted
Same car will bring a different price in various parts of the country too. A car's value is precisely what someone will buy it for!
While Kentucky doesn’t have a sales tax basis offset if you trade a vehicle for another vehicle Kentucky does adjust the sales tax to only $6.
2019 Honda Ridgeline 44154 miles, original owner in great condition. As of Jan 24, 2024, Carmax offered 23k for it. A local Honda dealer offered me 24k. Going to get more estimates later this week. I am thinking about selling the car myself. The vehicle is located in California.
It seems like the dealer is gonna play games with the sales price of the new car as well that factors into their offer for your used car. In other words, they might offer a high price for your used car, but not give you many discounts on the new car. Or, they may give you discounts on the new car and not much for your used car....
They do play that game.
@@garfieldsmith332 But, I suppose I forgot what these guys taught us first. Negotiate the "out the door price/no trade", then talk about the trade in. Of course, the salesman will probably grill you on whether or not you have a trade before negotiations begin I guess
@@fleetwin1 Salesrep will. That is why do not drive your car onto the dealers lot.
@@garfieldsmith332 Good advice... I'm sure that they would be going over your car while you were inside...
@@fleetwin1 Yep. And you may find there are a few things wrong with it after they had a good "look" at it.
Usually when i go get "get a new car" its because my current car usually needs more work than what the car is worth. Like my well used 2010 honda civic hybrid needs a new hvac unit with clutch. Parts alone are almost what the car KBB values at (with current condition of car)
Took my wife’s 2017 Chevy Cruze with 40k miles to a local dealership a few years ago and they offered me $6500. I just looked at him said no thanks, walked out the door and did a private sale for much more.
Maybe for a future story….we have a local Kia dealer who advertises prices that are $2000 less than the actual sale price noted in the fine print. There has recently been a management change and now they list market adjustments..example for a Forte:
MSRP:$21,785
Market Adjustment:+2,000😮
Final Price:$23,785
Yikes!
I found that the dealer was giving me a trade in value for a Jeep Wrangler JKU Sport when my Wrangler was a Rubicon. I found this out when I asked them to see the document they were basing the value on. Caught them trying to screw me so walked out the door and went to the dealer cross town.
I get information from Kelly Blue book on pricing on the internet, and get Carmax to quote my car for trade in. Between those two sources, I'll work with the dealer to see if they will beat my numbers (without me telling them). If they are under my estimate, I'll show them the carmax paperwork and ask them to match. If they wont, I'll trade with Car Max and use the money to buy the new vehicle. I will do a calculation of the sales tax savings for trading in if its close and I may accept an offer lower than the Carmax quote only if the tax advantages out weigh the difference in quote.
For the all the genius’s out there
Keep your info to yourself, get the dealers number first and go from there.
Combative negotiating just make things more tense. If you want to go thru the hassle and it makes sense sell before you ever get to the dealer.
Remember though the dealer wants your nice trade, they’re also selling you something so it makes sense that they would like a happy customer.
The kid likes to stir it up but the old man knows.
Thanks, had no idea about the Tax credit in my state of Florida.
My car is worth "right now" ...mileage, age, features and condition $14k...THATS the information you take to the dealer...its a fact they cannot ignore.
If you don't ask for the breakdown, the dealers will quote only the 'total trade-in value' to make their 'true trade-in value' offer look higher.
I went to a dealer that was 3,500 under my Carvana offer. He countered that Carvana can change their minds and I told him they didn’t on my previous sale to them. I’m in KY and they must have changed the trade in tax savings laws because they said they do it here.
That accord example you gave is a $25k car where i live.
Can you do a segment that will help us deal with car dealers who watch your videos and prepare for us coming in with all you invaluable info and advise?
You guys are awesome!!! I am shopping for a used Lexus RX 350 2016- 2020. I want to pay cash but I will finance just just get the incentives. I am in Miami Florida
Also, go on a sunday always. 3rd week of month
In Oklahoma, the sales tax credit only applies to New car sales.
There is also the fact that the dealer may have to recondition the vehicle in order to sell it. i.e new tires, repairs, etc.
I have learned so much thank you so much😊
We recently took our 2018 BMW X3 that we got a KBB appraisal of $26,000 prior to going to the dealer. The dealer offered us $19,000 and told us it was based off of a fair condition- The car is immaculate and only has 43000 miles. They wouldn't budge. $19k or take it to Carmax was our choice. Needless to say, we didn't get the car.
I always sell my used car to carmax, then buy another elsewhere to make the transaction less manipulating.
carmax always gives me more for my car.
You have to be a dealer to use these pricing apps. We should be able to SSA what the dealers are seeing too.
One formula is: Used Car Offer = ((Original MSRP/#years old) - cost of repair) x (square root of no. of wheels)
In Missouri you get the Sales Tax credit no matter where it's sold. You just have to show you sold the car within 6 months on a bill of sale and take off the car you're registering.
Great tip that I never considered. I need to find out if that applies in Ohio.
Hello. If the dealership applies the trade in value to the out the door price / bottom line instead of the car price what happens to the tax savings?
Thanks guys, well done. I have a nice 4Runner but it’s a 2010 and it’s in great shape, only some paint chips on the nose from a stupid gravel truck. I love it but I want/need a truck. I want to trade it in bc I don’t want to mess with selling it private and have to hurry up and find/buy a vehicle in order to drive.
I have a 780 credit score plus my trade in value and how much I’ve paid on the loan, like 3.5yrs. I think I will trade it in for a truck if I can find one in my price range but trucks are outrageous anymore. I probably can’t afford anything newer than a 2013 or something. It’s ridiculous. My brother in laws Tundra is 75k.
All the car offer sites said mine was worth 50k. I told my dealership I was willing to trade for a new car they had that had been on the lot for 106 days but I needed more. After beating them over the head and playing them against other dealers for several days they finally relented and allowed 54k for my trade. That was the absolute most I could get out of them but hey 4 grand is 4 grand.
Thanks, GREAT points!
Do not take your used car to the dealer. Work out the OTD price and then work out a trade value after you have researched what the market value of your car is.
@@1-Wheel-Drive If you live in a state where it helps the tax burden on the new car trading works to your favor IF you are smart about it.
😂😂😂😂
That's easier said than done. I'm a single 73 YO woman and having no car in the interim as well as dealing with people looking at the car is not so smart. @@1-Wheel-Drive
@@1-Wheel-Drivereally?? Yea maybe. BUT a lot don’t have the liquid!!!
You need to make it a win win. Get all the money for your trade at the dealership but also alow the dealership to make money selling you the car. A win for you and a win for the dealership. You can’t be greedy by wanting the dealership to sell you the new car at a loss and expect to get all the money for your trade.
THANKS GUYS. BEST YET.
Very valuable.. Thank you guys!
Carmax offered me 12k for my car in March, it's now 11k, a dealer offered 7500. Yeah the car is 10 years old but it's a TSX with 88k miles on it.
Carmax will buy it for 12, list it for 16k and it’ll rot on their lot while everyone buys their tsx for 8 grand on marketplace 😂
@@InternetUser._you'd be hard pressed to find a TSX for 8k with less than 100k miles on it, if you find it let me know. Also even blackbook lists it for 9600 and blackbook is know to lowball everything.
You don't mention that there 3 different values, trade-in, wholesale and retail. The make model, year and color also plays into it as well as how many are on the market. I personally would sell my car and not trade it as,I would get the highest value for it. You still making payments on your trade then it gets into equity and length of financing, you always owe more than its worth. Car dealership also makes money off the loan through their deals with the many banks, they do business with. People should always arrange their own financing and see what rate they qualify for . So many variables
Great info …thanks guys
I used this technique when I traded in my Subaru. I got $12k, not the $8k they initially offered. 😊😅😊
They often say "If you don't take our trade-in offer, then you won't get the tax benefit because you have to trade-in at the same place you buy the car" So the flip they leverage back on you. So the only choice is to walk out and have them beg for you to come back.
My state has a different sales tax scenario. If the car is brand new then you get the credit of sales tax on trade if. if buying a used car then you have to pay the sales tax on the entire price of the car even if you have a trade in
Old cars seem to only get "we have to see it in person," no offers. Same on caredge.