Don't Get SCREWED on Your Trade-In | How to TRADE-IN 2024
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- Опубліковано 3 тра 2024
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Zach visits the esteemed Gotcha Motors to trade in his old 2021 Ford F-150 Lariat for a brand new truck. However, they lowball him! Armed with Kelley Blue Book and Manheim auction data, Zach sets out to convince salesman Ray to give him more money for his truck. - Розваги
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
The fact that UA-cam content creators put out dozens and dozens of videos advising people how not to get ripped off by dealers just goes to show how slimy the car business really is. UA-cam content creators aren't cranking out dozens of videos advising people how not to get ripped off when buying a tv, a lawn mower, a washing machine, or any other products.
I can honestly say having a root canal was more pleasant than my most recent car buying experience.
Maybe you have unrealistic demands? Walking away is the customers superpower.
I once told a car salesman I’d rather be having a roof canal then talking to him
A root canal??? I think a root canal is actually kinda fun. Maybe a kidney stone is more comparable to being better than dealing with a car dealership. 😅
@@kevinsito0801 💙😍👍
The biggest mistakes buyers make is being impatient or becoming emotionally attached to a new car. There will always be another one available from a different seller. Walk out if the deal does not feel right.
One of the biggest negotiating tactics people miss in these videos is Anchoring. The dealerships attempt to anchor us with their number so all negotiation is starting there. The buyer needs to shift the negotiation by anchoring at a specific number and negotiating from there by having the power to walk away. When these negotiation videos don’t include a clear anchor on the buyer side, they aren’t nearly as valuable.
Great point!
Ray is correct here. If you overpaid for a vehicle, that’s on you. Trade ins don’t get as much as people think.
A conversation like this and I would be straight out the door. Last time I bought something at a dealer I gave them a number and said "take it or leave it". There was zero negotiation.
First time commenting ever. This is the ( and other topics you do) kind of stuff I enjoy you guys doing. I’ve been watching for over a year + and you guys have truly educated me from earlier blunders in my life. Please keep up the good work guys. Take care
Love your guys content please keep it up!
*"My pleasure, Handsome..."* Love that! I call my son, *"HANDSOME,"* too!
This Info is awesome. Thank you
Thank you for this! Very helpful! Please do more trade in videos for this year
Why did Zach settle at $35000 when all the data pointed towards a much higher value even in fair condition? How did you determine, trade in was ONLY worth $35000? It appears you left money on the table.
That was exactly my point. The truck should be worth more than auction value since they don't have to pay fees or transport.
Thats like telling someone a burger is 15 at a restaurant, but if we bring it to YOU, it's 10. Why would anyone ever choose to go to the restaurant?
He made up the extra money in the sales tax savings(37,500) and everyone walked away thinking they got something out of the negotiations.
Today this is unrealistic. I would have got up and left with that starting number. Dealers need used inventory and to much new inventory on the lot. My last vehicle I negotiated through email and phone calls and then just had to sign some paperwork. If they don’t want to do this over the phone, move on to the next dealer. Also, get multiple offers for your trade in writing and bring them. Start there and avoid this unnecessary back and forth.
Could you post links to where to get the kbb auction and manheim values?
I got my price on my trade in.
I washed and waxed my 2017 Honda CRV EX with 108,000 miles.
The KBB says 15,500 for the excellent condition.
I got 15,000 on the trade in and paid 38,500 on the New 2023 Honda Ridgeline RTL HPD with 6 miles on it. The asking price was 46,500. 😊
They sold the trade in for 20,000 the following week.
We are both happy.😊
ive paid about 11000$ in repair bills and maintenance and 5000 for a van in the past 7 years and only put 50000 miles on. Not sure if i would have been better off buying something with less than 150000 miles. How much did the honda cost you just to buy in 2017?
@@km6731
27,500 with destination/plus tax/proper paperwork. 31,500 out the door price.
The 2023 Ridgeline 38,500 price includes destination fee. The original price was 40,000. By financing, I got 1500 dollars credit. I'll pay it off in a couple of months. Paying cash was my original plan.
Of course, you have to add sales tax to the final price.
Please give me the name of the Dealership that sold you that 2023 Ridgeline for $38,500. I want that same deal.
You did great! Some people spend time on negotiating trade in and then get ripped off on new car.
If someone wants lets say $1000 more for their trade in and dealer gives in, they can easily find a way to make up for it these days with mark ups, add ons, adm fee or whatever sleezy tactics they use these days...
@@shirleygorre6003
Interstate Honda Chehalis WA
The reason why they gave me a good deal.
They wanted my 2017 Honda CRV just as much as I wanted a good deal on the Ridgeline.
It started out as 43000.
After I showed them my trade in. We agreed on 40,000 dollars.
Honda finance also gave me 1500 dollars credit for financing.
I got a great deal on my trade in. 15,000 dollars was a excellent on KBB with 108,000 miles on my odometer.
You have to start with something to offer in order to get a great deal.
The dealership sold my trade in the following week for 20,000. They made 5,000 in profit. We are both happy.
Good video! Keeping it semi short and to the point!!! I always do my homework. That’s a great idea. Also to do the auction website to see what they are going for. But KBB helps alot. Just keep in mind that you should get close to what the trade-in value is. Don’t let a dealership tell you well this is our KBB piece of paper that shows what it’s worth. That’s total BS because their numbers are coming from something a little bit different. Remember these dealerships told everybody the last couple of years we are paying KBB money!!!
Yeah, sure, a Salesman will go to his boss and fight for the customer. You guys are great. Thanks.
My '15 Crosstrek XV has been involved in 3 accidents. The 1st minor, #2 was just the front bumper but #3 was borderline totalled. Coupled with a few age related issues, it has 55, 000 mi and fantastic gas mi. I'd sell but the thought of dealing with another car salesman gives me high blood pressure.
These guys are good. Makes me want to go negotiate
If you have a good trade in like I always do, if it is blatant that they are trying to screw you I always use “I don’t need a car. I want a car. You need to sell a car” That almost always gets them the first time. If that doesn’t work, I stand up, thank them for their time and start walking out. At that point they usually start to get nervous and scramble
I like the way Ray says stuff
I have found buying a really good used car, preferable Toyota or Lexus, and driving it for a very loooong time before getting rid of it is usually the best idea. When your ready to sell it,sell it private party and move forward. Buy another one, and drive it 250-300k miles and repeat. You will find yourself not buying cars very often by doing this.
U DWIVE TOYOTAAA LONGGGG TIMMMEEE???
I tried to do that with a Dodge. Yeah that didn't work out so well. I should have been looking at other auto brands.
@@BTC909 Hey, at least you learned after your first time. I know people who have made that mistake over and over and over and over again….most unfortunate. What are you driving now?
@@hokie9910 An '06 Vue with it's Honda Engine & Transmission. Around 212K now.
Agree! My Lexus is a 2012 and husband drives a 2007 Camry. Both still going strong.
Just in time 🎉🎉
i hate when u trade in a car and they low ball you example 34000 and then they come back and say with the tax credit its more like 37k. when does tax credit and trade in value go hand and hand they dont, dealers that say that imop are scamming you, throwing you off with the tax credit savings, this tax credit savings has nothing to do with what the value is on your trade,
I’m trying to find the video where you guys discuss the amount of time on a lot a vehicle sits and what kind of deal you should get.
I know it isn’t feasible for everyone, but sell your car private party if you can. It’ll always be more than a trade-in (Especially if you own it outright). Get a loan for the new car, sell your old one, and use the proceeds to pay against the loan.
Private party sales were mostly failures for me due to the potential buyers unable to produce the necessary cash to purchase my vehicles. The vast majority of those buyers had expectations that I would accept a payment plan even though my newspaper/weekly shopper classified ad (circa 1990s) and/or Craiglist's ad was unequivocal regarding payment, "cash or local bank/credit union cashier's check!" I encountered too many people lacking reading comprehension skills along with asking unnecessary questions concerning the vehicles' conditions when the answers they were seeking were already stated in the advertisements.
But the tax credit for the difference is nice on a trade
Not always.
In most states you get a tax break on the price of the new vehicle for the value of the trade. That may offset any difference in the amount received when selling privately versus trading.
Also, trading eliminates the effort and hassle associated with selling privately.
You do, of course, need to know what your trade is actually worth.
Where can we get that auction data?
I’ve seen my trades flip onto the lot the same day. One didn’t even get washed. There is no way dealers are spending
thousands to recondition.
They usually just have them detailed but want you to think they’re doing all kinds of things.
I agree, I think thats the only part of this video I disagreed with. No way the average recondition to flip is costing 2-2.5K.....even if they put 4 new tires on, and thats a big "if", and then detail it a little, they are likely still well under 1k.
As a buyer with this information, am I allowed to take the info in to the sales manager since the sales person is apparently not wanting to?
Is a Fisker Karma a good trade in?
Your guy's are the new becoming. And I hit the like button with warp speed.
How do you buy the extra reports from KBB?
I'm not having any luck finding auction values and looks like I have to create a login for Manheim. Anyone know how to find auction values?
Basic good condition autos that get traded in means: a good detailing needed. Which won’t cost what a person would pay on their own for a top detail because the dealer will have a lower cost.
Unless there’s a slew of things like tires needing replacing, a cracked windshield…brakes/suspension, there’s NO WAY turning that car around (if staying on the premises for resale) ACTUALLY costs $2000-2500+/-.
I used to always sign up for Galves and bring that with me and always got what it said for trade in. Then I would aim to only pay $3k over galves for the car I am buying from them. (if it was used).
CARFAX is offering me $10,400 for my 2018 Honda civic with 97k miles. I’m inclined to do that as I want either a RAV4 or a 4Runner now that I live in a place that snows. Just dreading the whole car buying experience
Watch the trade in...sometimes dealers will give you want you want on a trade in but add the difference from the original trade offer into the price of the vehicle...so always double check your numbers at the financing office regardless of what the salesman told you the price of the vehicle is or the trade in number that you wanted will be!...
Love the videos 😂 How about some insight on what is actually going on when the salesman actually goes back to talk to management 🤔 I've always wanted to know what BS is being talked about.
Brief conversation about the trade, than just a bunch of bobo about the family what movies you seen in the last couple of days. Nothing significant
Keep a close eye on them, or have a friend do it. Sometimes, they don't even talk to anyone, if you look like the type they can BS.
Is the website down??? nothing is working and I keep getting a black screen when trying to log in
Can I request to speak directly to the sales manager to inquire about a FUTURE factory order??? I somehow I feel as though bc I look young, if im not ready to purchase in at least a months time they, they'll relay info through the Sales Rep.
I had one dealership begging me to trade in my car, and then they tried puking this crap on me and even used the "reconditioning costs" as an excuse. I laughed in their face. My car had 5,600 miles on it and was 13 months old at the time, and they literally did every service on it, including the big 12-month service/ inspection where they did a full video review. What exactly is required to "recondition" it?
And this was all talked about when I went to go pick up the vehicle from service after they did the 12-month service/ inspection, oil change, tire rotation, and air filter. I hadn't even picked it up from service yet, lol. Unfortunately for them, this was a spare vehicle that I didn't really use.
I own my current car outright and will be trading it in and leasing my next car. Should I trade my car at the dealer and use the value (about $10k) toward the lease or should I sell it separately from the dealer? In essence I am using my trade in as my down payment, but I seem to remember you suggesting that I shouldn’t put money down on a lease. Guidance please.
Don't use your trade toward the lease UNLESS the payments are of concern for you. That equity you have vanishes once you put it towards your new lease.
The part that always irks me is when the salesman says he's giving me a $$ tax savings. He's not giving me squat. its a reduction in sales tax that the state is giving me... Not him. It should not be considered in the trade in value or any other value.
What is the sales tax basis benefit?
What is the sale tax base benefit?
what if I still owe money on my financed vehicle I want to trade in?
Feel like I kind of got my trade stolen from me last time I bought a car... Definitely going in with more information next time! (Though hopefully that won't be for another 10+ years.. 😂)
Ray, Zach, what is y'all's stance on purchasing a service loaner. Looking at a '23 A6 with 5k miles. Really apprehensive about a car that's been potentially driven hard like a rental by 40 or 50 people.
The stance ABA, anyone but audi. BUT , if you do buy one, purchase the longest extended warranty you can. Ask me how i know :(
@@wpgspecb yeah I ended up passing, I guess the loaners are a killer deal for a reason... What model did you have an issue with?
@@gregroyer2761 I disagree. They might be better than a preowned vehicle. I bought a Volvo with 5k miles which could have been used as a loaner and the car was flawless. They even added a CPO warranty and they sold it for $9K less than a new one.
Here never have traded a car/ruck in. Also have never made a payment . Am the few no cash to pay no get. Also am not ashamed to have a older car. Just look for a lower milage few owner car. New and shinny is a wait of money. Look at it this way a repair is less than a payment.
I walked into a dealership my daughter was working at and tried to trade in my mint 20 Mustang GT Premium with low miles. I did ton of research and my trade in for an ok condition Mustang was 42k at the time. They offered me 32k. I was shocked. I was so pissed that i didnt even want ro negotiate.
Could you lower the monthly subscription fees to your website?
I wouldn't pay a subscription to any any website. TOTAL waste of money. Do the research yourself on buying and selling vehicles.
With the outrageous inflation of the sticker prices, I would think the salesmen would look like hero's after the appraiser of the trade in says that a car or truck is worth $35k and the salesman just takes money off of the inflated sticker and moves it over to the trade in saying he`ll give the person $40 grand for it and therefor looking like a hero as they walk away with a hell of a profit.
6:50 Ok man, you won, you absolutely did not need to peacock. Unless you have no compassion for others, Just take the W, you have created a honest and trusting no BS relationship with a dealer/sales person who will remember you dont fuck around.
If I buy a Honda in Colorado but am moving to Arizona, can I register the car in Arizona?
why not ?
@@wpgspecbAs long as you have an AZ address.
Which state would you pay sales tax in???
@@2148aa Not sure on that one. I bought a car in Arizona and had it transported to Colorado. I paid some things here in Colorado but don't remember. I will making a move to AZ soon. The car I would like to purchase is here in Colorado. I don't want to have the hassle of paying two registrations.
Dealers spend zero money on reconditioning. They slap a for sale sign on it as soon as they buy it from you because they already know when they buy it how much it is worth and what potential problems it has. If they know it has problems then they reflect that in the value of your trade which you pay for in less money for it.
So true. I traded in a car and after they paid it off (about 12 days), they tried selling it. I went to see the car just to see what they had done, and the answer is NOTHING. Absolutely nothing. The only thing they did based on the Carfax report was change the oil.
My franchise dealership spends about $1600 per for recon. I’m guessing you are dealing with a rock lot or a place that helps people that are not as fortunate as most. CIAO!!
@@shackrat2331 No they don’t. As I said, the dealer knows how much a car will cost to “recondition” and they reduce their trade value by that much to the owner. The dealer does not pay anything for a recondition unless they find out the car has an underlying condition that they didn’t catch but those events are few and far between because dealers know cars and what to look for for each model.
@@shackrat2331 nope..... United Bmw in Atlanta (Penske)
This is not necessarily true. For some dealers this is a source of income for the service department and trust me at some dealers it is ridiculously high but you also have the flip-side where it's just an LOF and thrown back on to the lot.
5 years ago a dealer in NJ was trying to offer me 14k for my 2015 Tacoma. I laughed and walked out. Ended up getting a 19k offer at a NY dealership. You gotta be willing to shop or drive to get the best deal.
just yesterday in nj i had a similar experience; i have a 2017 very good condition jeep cherokee trailhawk, relatively low miles for a 7 year old car, 68K.....kbb range was mid 14's to mid 17's......they offered me $13.5. Hot brand, hot car, hot used car market, and they literally offered me BELOW the kbb trade in value lowest range. I said " that's unfortunate", and walked out. They called me back this morning, and "we'll see what we can do for you". Ha. we'll see. The greed, it's unbelievable.
So "in writing" the dealer should provide a detailed breakdown of the "reconditioning costs" to the Buyer. Ray from Gotcha Motors: Oh but, but, yeah I thought so.
Who does all the programming for your site, app, surveys etc. That's a lot of backend work. I always see you two as start ups but the algorithms you use are not trivial..
I can't. Just take it 😔
My trade in offer went down $1000 in a week, only put an extra 150 miles on the car. I hate car dealerships.
What is "Black book" vs Blue book?
Blackbook favors the dealer / blue book gives you closer to what your car sells for at auction aka wholesale (Mannheim auction data feed by COX data collection) and what others have paid for the same vehicle. Banks that own the floor plan go off NADA value ( driven by COX data) of how much lenders are willing to lend also ground w/in your credit risk (FICO 8).
Until inflation settles down bank today are not financing above 100% - when the dealer says they can get you financed to include negative equity you carry into a new deal I.e lender finances 110 or 120% above NADA market values - also factor depreciation 20% after the 1st year
I do not even get into this back and fotrh nonsense. I go to Carmax cause they pay the most and higher than the BS Kelly Blue Book which is supported by dealers. CarMax is the only local place where you can actually walk out with a 7 day written offer. If the dealer is off by smaller percentage, then I know they at least are trying to get somewhere. If the dealer pulls one of these $10K below, I walk. That is it. Not there to play games.
cheer's from Costa RIca
Why can't we go directly to the manager and skip the salesman?
in this case the dealer is playing step #2 in rules of negotiation: ridiculously low offer. (they are definitely playing with fire by offering too low, because some folks will leave right away and say sorry, we can't be friends)
No big banks take kbb. Also, kbb is a guide and is slanted. Not used!!!!
My last time trading in a vehicle I walked away from the table. The next week I got the amount I was looking for from a different dealer.
This 🏹
Problem with trade-ins at dealerships is that once you agreed to the trade-in value then the dealership will drag their feet with the OTD price of the new car. The line usually is "well you already got a great deal on the trade-in and therefore we can't budge on the final price of the car." I thought you are suppose to negotiate on the price of the new car first before even mentioning trade-ins or financing? This happened to my dad at a Toyota dealership. He traded in his old 4cyl Tacoma and got 10k for it but when it came to negotiating the price of the new truck the dealer argued that no negotiating can be done since he already got a "good" trade-in value. They wouldn't budge an inch.
OTD price first, then trade in value.
They've mentioned multiple times on this channel that you should separate them as two transactions. First get the otd number and buy your car. Then do trade in. Then your payment
Head for the exit to see how committed they are. The vehicle will still be there tomorrow, or a similar one at another dealership.
Could you explain or link a previous video regarding sales tax basis benefit?
Wouldn't the dealer also have to recondition a vehicle purchased from auction? If so, then getting Zach's car for 38k is a bargain since there were no auction or transportation fees.
Should I lie to the dealer and tell them I’m looking to trade in my current vehicle, even though I’m not? Hoping to have them discount the car more because they think they’ll make money on the back end
No because they won't discount the car more. They'll lean towards trade in price and hide the incentives.
If the salesperson is asking for all these guarantees and playing some sympathy card, I am gone then. Absolute BS. It's more than I can take and are willing to deal with. I have tried, I just can't. But I also don't care if I take the vehicle home either. At some point, I will land something.
Can you talk about the NY Times article on the amount of data being downloaded while we are in our cars? Thanks
Sell your vehicle private party. Takes more effort but it is worth it.
Had 1 dealer offer me $29,000 for my trade-in and another $24,000 and refused to budge. Bet you can guess which dealer I went with.
As I am in the UK, the sales tax thing confuses me. We see cars that the sticker price is the price including VAT.
If u need manager approval then i.will talk to him directly
Can I hire you? The more I watch, the more I hate car this process.
Yes! caredge.com/plans/concierge
"a particular one, on average", lol
When was the last time either of you were at a local auction? Mannheim and KBB can say anything. It doesn’t matter until the car is sold!
It's a good way to gauge the value of your vehicle. You don't need to actually go to any auctions.
If a salesman talked to me like that I would be gone. You commit and I will do my job? Fight for air sales boy.
Did he just end with, "my please,Handsome....."?
Customers will use all the research to juice up their trades but disregard all the info when buying the used.
$32k for a trade in?? That's insanely high to me. I got $1.7k for my shitty 2014 Kia forte
I love Gotcha Motors 😂
Car buying experience is exhuasting! Sell privately, carmax or keep your car...3K is easy for them to add on new car as mark ups. It's a con game!
In my opinion you should NEVER trade your car to a car dealer. What I do is either keep the car or sell it private party. I always buy new and keep my cars at least 15 years. Best way for me because I always get my moneys worth that way. Always remember a car IS NOT a depreciating asset. IT IS a depreciating liability.
I like this channel a lot, but it exists entirely based on car dealerships being a scam. I can’t stand car dealers. Knowing they’re struggling right now makes me laugh. The gravy train is over.
Car stealerships are a scam
Big ones aren’t. Small local lots are hurt. I’m at a group one and it’s fantastic. These deals are funding lol
@@tenac996 wrong. Big dealerships are in a little bit of a spiral.! I’m not saying they are going under, but they are feeling pretty big right now
True but this is retail. What business in retail isn’t going through hard times. Malls, electronic stores, all these places are hurt. The thing is you need to come to a dealership to get a car(I’m not including private sellers in this convo)
@@tenac996 and the stealership needs to be honest about the transaction
I make it simple. I don’t trade in vehicles
Zero chance of me buying a car from this guy.
Guy’s dealership in Mass told me he give me 35k for 2021 ram anniversary limited air ride 40k miles mint condition I told him 🖕… there nuts
You are better off selling your current car privately before buying your next car. You don't want to trade your car into a dealership (aka stealership)
Sell the car by yourself. Isnt that easier?
$10,000 lowball on a trade in I’m waking no conversation.
Never trade a car to a dealer IMO... Just eat the tax loss on your old car in a private sale... unless you are trading a PHEV that qualifies for the used EV tax credit... then maybe (only dealers can qualify for the used EV credit, not private sales).
*Reverse competitive bidding is the only chance you have!*
New, Japanese built 2017 PHEV Prius Prime for $22.3k + TTL. Old $4.5k EV tax credit made it even cheaper... nuff said... still like new 6 years later... not giving it up for a while.
Modern car prices are insane. I guess we will own nothing and be happy about it... while new, unsold cars are dumped in landfills...
#bailout
Look at what your trade is selling for on average at lots and start from there. If a dealer tries to screw you on trade-in, then you have to know that they are screwing you on the new model that you are trying to buy. Walk out and let their greed waste their time.
I would have laughed and walked way early in this one..
The best way to not get screwed on your trade in is not doing a trade in
Ray I love you , I like your watch, Brotherly advice, please fix your teeth
It’s like the caravana bs
In other words, do your homework just like any other purchase.