Can anyone tell me how dealerships do the "trade-in" process?? Do they actually offer you the Kelley Blue Book value for your trade-in? Maybe higher or lower?

I am thinking about doing that to get an 07 Z Touring. Any advice would help. Thanks.

 

I first went to a Carmax dealer to see how much money they would offer for my 1997 GST eclipse spyder, they offered 5500 dollars which was on the high side of blue book, then I went to the dealership to purchase a o6 scion for my wife. The dealership matched Carmax's quote for a trade-in. That sealed the deal and we got the scion. It was kind of a bargining chip because at first the dealership only wanted to give me 4000 for the car at first. This is just my 2 cents.. Good luck.

 

The dealer is going to price your trade-in exactly the opposite of pricing the new car: low-ball the trade-in and high-ball the new car. KBB does not dictate prices. The KBB numbers are collected from sales. You should have all your numbers written down before visiting the dealer. Remember that the trade-in is a separate negotiation.

I put my numbers on paper, hand them to the salesperson, and ask Can you do this?

 

Rarely does the dealer give you the KBB trade-in. But just keep on insisting on your numbers and maybe you'll walk away with a good deal.

 

I always wonder what people mean when they say the trade in is a seperate deal. It is only seperate if you do it at a different dealer. If I negotiate an excellent price on the new car, they will just give me less on the trade. If I get a great trade value, they'll just stay high on the new car.

 

In the process of buying my Z, every dealer I went to lied about my trade-in value. I knew ahead of time the KBB was $3500. Each one of them gave me some extremely low number and specifically told me that was the KBB value and was as high as they could offer. Then they say "Want to see the printout?" to which I say YES and soon after they come back saying oh, I guess it is a bit higher. Lame.......


When I actually bought the Z they initially offered me $500. I talked him up to $1600 but he kept rambling and wouldn't go any higher. So I didn't trade it in, I sold it to a neighbor for $3500 2 days later.

It depends on the dealer but some of them are really lame.

 

Because it is 2 seperate transactions.

1) Negotiate the best del you can for a straight out purchase.

2) Then see what they will offer you for your trade. If you think they are low-balling the offer, go down the street to another dealer. Negotiate the best price you can get for the sale of your "trade in".

You don't have to sell your trade-in to the dealer you bought the new one from.

bill

 

Why ask for advise, then debate the advise. One of us has been buying cars for 38 years. Do as you wish.

 

They give you wholesale value which = ****!

 

They will give you as much as they need without losing their margins if they want the deal to go through. If you are at 200 below invoice I wouldn't expect anything over wholesale for trade and if your paying sticker I would expect kbb or alittle over.

 

I just got back from the dealer seeing what i can do trading in my 04 350z for an 06 and they were telling me they were only going to give me 16000 for my z and sell me a base for 28k OTD...I walked away then they came out telling me they will give me 21k for my trade in but then when i sat down again to discuss number they were trying to jack my interest rate up to 10% on 72months...So in the end they are just there to rip you off

 

Like gambling, Stealerships always win! Put it for sale in the local classified adds!

 

You just really have to pay attention when at the dealership. I have already bought a few cars, and traded in a few as well. It is definitely more of a hassle to go to the dealership with a trade, but if you bought your car at a good price, it will making trading it in a little easier.

I love how they try and manipulate the price of certain deals by telling you the price per month. That has to be the worst way to ever buy a car. I hate when dealerships come to me with that crap.

 

I gotta share my most recent story about dealerships too...it's more of a "lesson learned" the hard way! Last year I traded a truck in that I owed 14,500 on. I went into the dealership and asked for payoff and then I didn't really negotiate the buy price of the car I was looking at...stupid move. I agreed to "roll over" 1500 from what I owed on my truck to the loan price of the "new" car. In the end, I ended up with about 3000 more on the loan then the car was even worth...which byt the way, turned out to be $4000 less anyway.

So, now I'm taking the hit. I was too stupid and anxious to get the car that I made an emotional buy. The moral of the story is, know what your car is worth, know what you want to buy and it's worth and then go to the tables to "talk" with the salesmen. If you don't like what they're telling you, then walk out. Bottom line is, don't budge...sometimes you get a great deal. Also, always try to sell independently initially.

 

For a better estimate than KBB goto edmunds and get the TMV for your used car trade in.

From experience I can tell you, you can expect 16k for a first offer then you can negociate it up to about 17,500 for your RSX assuming its a Type S.

 

Here's the way they determine the value. I also started another thread so people can find this info. This is what I wrote:


Okay I saw this question in another thread and thought it would be helpful for people to have access to the answer without it being buried in the thread. Keep in mind that the results will vary by dealerships and market zones, but the over all process is the same. When the dealersip determines the trade in value of your car, forget KBB , Edmunds or anything like that. Those are all retail values and guilds for the consumer. What every car dealership uses is the wholesale "black book". This publication is updated every month and will reflect the make and model's value with mileage and market zone in consideration. You can not get a copy of this book unless you have a business such as a dealership, leasing company, car repair/resale shop, etc. Most dealerships will guard the book's info to the public with a death grip and some are willing to let you that a peep into it. Here are the steps they go through when you have a car for trade in.

• The dealership will determine the amount owed on the car if it hasn't been paid off yet. This is very important. If you have negative equity then don't except them to pay the full amount.

• The used car sales manager will look over the #s and the car to make sure the car is clean or problematic.

• He will then determine the preliminary value of the car based on the condition and market demand. What that means is the car will fall under 3 catagories:

1. Cash car: These are cars he can not resell on the lot due to condition, mileage, or other reasons. They will go to smaller mom and pop dealerships and/or auctions. If your car falls under this catagory then he will look up the value in the black book, call about 10 or so of his wholesale business partners such as Paccos car lot with no credit checks, and give you a determined price.
   
   
2. Cars he can resell on the lot: These are generally the ones with low mileage. He will also keep in consideration of how many of the make and model he already has and how that car has been selling. Once again, black book value dertermines this. If your car is a popular model that he knows won't sit long on his lot he may be aggressive in obtaining it which mean higher offers to you.
   
   
3. Cars he may not really want to sell but can tranfer: These are cars that the used car manager determines that has a value outside of his dealership at places such as auctions, other dealerships in his franchise ( If it's a big enough dealership) or other wholesale business partners that he deals with. This is dertermined if other dealerships are in need of this particular car.

Keep in mind after going through these steps, the used car manager will always come back first with a number that's below what your car is worth to him. This is what most people call the low ball effect. He is trying to make a profit right off the bat. If you don't bite then you guys may go back and forth a couple of times. Sometimes if the number he is willing to pay for your car is too low but he knows he can sell you a new car, then he will try to make up the differences in the sales price of the car. This is called the high low effect. That is why you never ever negotiate off of monthly payments. For example, if you are $2000 off on the trade then they will pretend that they will give you that $2000 on the trade side but then tack on $2000 or more on the price of the new car. Since you only see montly payments the numbers are hidden. Other times, the dealership will know they can make up the differences in financing and/or selling you warranties. That is why under very close negotiations you might get a situation in which they tell you the deal can not go through at a particular APR and/or without additional warranty.

 

This is very detailed. You have pretty much took me through a walkthrough of a trade-in process.

I do have another question. Lets say I really want to buy a new 350Z and the car I want to trade in has premium wheels, tint, CAI. Do they take that into consideration?

Thanks. Your feedback is appreciated.

 

They might to tip you over to their offer, but you won't get much. Basically if it didn't come with the original package then you are better off parting it out before you trade it in. That is why it is smart to keep all your OEM parts when moding.

 

I have a minor bodywork done, and some scrapes and scratches under the front bumper. Will the used car manager be very **** and detailed about his inspection?

 

It depends on how well the damage was fixed. If it was done by a good shop and the damage is hard to spot by an untrained eye then he may overlook it. You have to remember they can use that as a barginning chip against you by saying oh we can't give you so and so value because there's damage. I can't sell this on my lot. It has to go to auction. But then next thing you know your old car is sitting on their lot a week later.