Tell me about trading in a car...

[agotta]

That I haven't paid off yet. I own a 2000 GrandAm that has given me nothing but problems. I could sell it in excellent condition according to KellyBlueBook for between $4k and $5K. I think I still owe about $6k on it. It's in the garage right now getting a new water pump and timing belt, and once I replace the front brakes it will be ready to be sold. What would be the best way to do this?

 

[Patty3]

We have found that the best way to sell a car is by placing an add in the paper. Dealers seem to get you one way or another. Even though the Kelly blue book states a price, it has been our experience to have the dealer offer you about $1000 less.

 

[Davids-Coco]

Keep in mind that if you trade it in, you don't pay taxes on it. But if you sell it yourself, you will have to pay taxes. That is something to consider, especially if it makes a difference on how much you end up putting toward the car.

I would at least take it to the dealership and find out how much they would give you for it before putting out an ad. And sometimes, the difference is worth not having to hassle with selling it.

 

[RitaZ.]

How about CarMax? I've never dealt with them, but I've heard that they do better on trade-in amounts than other dealerships.

 

[agotta]

How about CarMax? I've never dealt with them, but I've heard that they do better on trade-in amounts than other dealerships.

That is where I bought the piece of junk! lol, I was just out there for 45 minutes to get my loaner car,

 

[RitaZ.]

That is where I bought the piece of junk! lol, I was just out there for 45 minutes to get my loaner car,

Well... disregard suggestion!

 

[agotta]

No, it was a good suggestion. That is why I went there in the first place.

 

[Michie]

If you do decide to do a trade in, decide on the price of the vehicle you want to buy first. Do not even discuss the trade in allowance they will give you. When you reach a price on the new vehicle, then discuss trade in.

 

[Lisa L from MI]

I traded in a few cars in my lifetime and have always gotten what I wanted.....Go through the price process etc first on the car you want and then mention the trade in you have....and let them offer and if they don't offer what you want tell them that is the only way you will buy the new one....and get up to walk away and forget the deal...worked everytime for me....Especially nowadays....with car sales not wonderful......they should do it.....

Good luck

 

[rt2dz]

Remeber when you check the KBB price, check the price of what you would get if you sell it and what the trade-in price is. If you are selling ot out right, you will have to pay it off first. If you are trading it in, they will pay it off for you and you will include what you are upside down on in your down payment or refinance it into your other purchase price.

On a side note... We've been told by those in the know (mechanic/car dealer friends) when you buy used stick to Honda, Toyota, Saturn or certified luxary cars (BMW, Lexus) because they generally hold up a lot better. And they also told us it is better to avoid Carmax for 2 reasons. (1) They tend to have more overhead and will charge more to cover it, so you are more likely to become upside down in your loan. (2) Many of their cars (not all) are cars that people couldn't get enough on trade-in at dealerships or were totally rejected which means they don't hold up as well. Just what we've been told...

 

[Cindyluwho]

Keep in mind that if you trade it in, you don't pay taxes on it. But if you sell it yourself, you will have to pay taxes. That is something to consider, especially if it makes a difference on how much you end up putting toward the car.

I would at least take it to the dealership and find out how much they would give you for it before putting out an ad. And sometimes, the difference is worth not having to hassle with selling it.

Very good point! On a $6,000 trade in at 8% tax rate, you'd save $480 buy trading it in.
Also good to remember that in the KBB the trade in value is different than average retail. No dealership is going to give you average retail for your car unless they tack it on to the retail price of the auto you're buying.
My rule of thumb when car buying from a dealershipthese are in no particular order)
1.Get a very good idea through KBB, etc what the trade in value of your car is.
2.Find out through internet sites what the invoice amount is on the car you want to buy (if buying new), if buying a used car find out what average retail is on that car. Print it out so you have the $$ amounts for add-ons
3.Find the car you want at a dealership-offer to pay $250-$1000 over invoice. this will depend on the make of car. Cars that are in high demand will very rarely be sold for $250 over invoice. If they have 20 of a particular model of car on the lot they'll go closer to the $250 mark.
4. Buy the last day of the month - they have to get those cars off the lot or pay another months fee to the manufacturer.
5. If the pressure gets to be too much or you're the least bit uncomfortable - WALK AWAY! You can always come back later to talk about it. Don't let them pressure you, ever! You're the customer - make them work for their $$.
6.Eat before you go. These things can take hours!
Good luck!!