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-   -   How do you negiate trade in on order? (http://www.jeepgarage.org/f73/how-do-you-negiate-trade-in-on-order-26607.html)

tibbs14 08-03-2011 08:04 PM

How do you negiate trade in on order?
 
I am about to go order a 2012 Overland. I have a car I want to trade in. I can't seem to find much information on the web on how and when in the process to negotiate the price of your trade in. I know a lot of people on this forum have ordered there Jeeps. How and when did you negotiate the price of your trade in? At time of order? After order came in?

J13ntv 08-03-2011 08:35 PM

Re: How do you negiate trade in on order?
 
I am pretty sure you have to disclose your trade sometime during your order/pricing work. If you wait until your order comes in you might be out of luck. The dealer isn't obligated to take a trade in.. Thus you could be shafted if you waited to long. I didnt trade so i can't offer advice as to when, but I'd say once you come close to a price your happy with on the vehicle. Be advised though your not going to get an outstanding offer on a trade in if you get close to invoice or below on a new order. They need to make money somewhere and trade in's usually isn't one spot. How they usually make it look good is inflating your trade in value and having a higher buy price on the new vehicle to offset their loss on the trade in.

Technosavant 08-03-2011 08:45 PM

Re: How do you negiate trade in on order?
 
When I first placed my order, they evaluated my trade and we worked out a deal assuming the same condition upon the arrival of the new vehicle.

Still, J13ntv is correct; as much as car buying experts tell you not to negotiate price and trade in at the same time, the two ARE connected. The dealership has to make some money on the deal, and the lower the price on the new vehicle, the less you'll get for the trade. Go in with a guaranteed deal like we had (we used an affiliate pricing program for 1% under invoice and another $500 off) and you'll not likely be happy with the trade value.

Trade ins are a convenient way to get value out of your current vehicle for use on the new vehicle. You can get more if you sell it yourself, but you'll pay for that money with less convenience and more work.

tibbs14 08-03-2011 08:49 PM

Ya i am getting pp price. So you had the dealer put something in writing about the terms of your trade in?

Sammzway 08-03-2011 09:56 PM

Re: How do you negiate trade in on order?
 
They write everything up PRIOR to you placing your order.

jgc4ever 08-03-2011 09:56 PM

Re: How do you negiate trade in on order?
 
So do you tell them about preferred pricing first, or do you first try to get as much out of your trade before you let them know you have affiliate pricing?

Sammzway 08-03-2011 10:13 PM

Re: How do you negiate trade in on order?
 
First thing you do is have them appraise your car. You can discuss all the details about your new vehicles but after that get your car appraised. Obviously do your own research first and figure out what your car is worth and then knock off 2gz and that's what you should try to get the dealer to agree on as far as your trade-in vehicle goes.

2nd step would be pricing out your new vehicle and so forth. The dealer may give you an option to either put the difference (if your car is worth more than what you owe the bank) towards your new vehicle down payment OR they can even cut you a check of the difference and you put down payment (whatever amount that may be) on your own. Usually people just use the difference to put as down payment towards the new vehicle.

Also, shop around a little bit because different dealers will appraise your car differently. For example, I recently just ordered a 2012 VW Passat and ill be trading in my 350z once my new vehicle arrives. One VW dealership offered me 9gz for my 350z whereas after shopping around for a week, I found a VW dealership who offered 15gz. So you have to be patient and know what your vehicle is worth. My 350z is worth 17500 by the way but I settled for 15gz.

Any other questions or concerns? Please do your research before going to the dealership because otherwise they'll play games with you.

HiCap 08-03-2011 10:16 PM

Re: How do you negiate trade in on order?
 
They always try to steal your trade in, they make more money on it than the new vehicle, if you get discounted price. I take my trade in to Carmax to get their offer, it is good for seven days.
If new car dealer offers me less than Carmax, I tell them there will be no trade in, and sell it to Carmax. I have low mileage late model trade in, very good condition, Carmax is happy to buy them.

Sammzway 08-03-2011 10:20 PM

Re: How do you negiate trade in on order?
 
Does carmax buy your car even if there is a loan on it?

Sammzway 08-03-2011 10:21 PM

Re: How do you negiate trade in on order?
 
I hate going through hassles of selling a vehicle. I love trade-ins even if you get a little less money because its easy. Just drive to the dealership, grab your things and put them into the new car and drive off with your new car.

jgc4ever 08-03-2011 10:35 PM

Re: How do you negiate trade in on order?
 
Sammzway,

Thanks. Yes, I have one more question. I've looked at the price of my trade on kbb.com for trade-in, private party, and retail, as well as NADA and Edmunds which made me a little ill. Then I looked at the Jeep dealerships near me to see what price they are asking for '05 Grand Cherokee Limited's with similar miles as mine.

So price at the dealer for the same vehcile as mine, in the same color (silver) but theirs has 67,196 miles and mine has 60,580 miles, but theirs has a 5.7L V8 Hemi and mine has 4.7L V8 Hemi. They have price of $16980 today. Link: http://www.baxterchryslerjeepdodge.n...&SBprice=clear and
http://edmunds.autotrader.com/fyc/se...=1303789017817


kbb.com has my trade with my options and in excellent condition (my Jeep has zero scratches, no dings, and perfect leather and carpet; never in an accident, never re-painted, no mechanical problems or any problems for that matter) - trade-in value of $12,650 (link: http://www.kbb.com/jeep/grand-cherok...=trade-in-sell) and private party value of $14,600 (link: http://www.kbb.com/jeep/grand-cherok...76381475979400) and retail of $16,550.

Links are for my own future reference as much as anything.

Thanks for any help you can provide.

I will definitely take it to be appraised by more than one dealer.

Another question, do you try to negotiate financing too? I plan to.

I guess if I was trading today I would try to act like I wanted close to private party and really be OK trying to get more like $13k+ if it was for a trade-in with a dealer that I could then get a 2012 Grand Cherokee from.

edit: I bought this car new in March of 2005 so it's a one owner (it actually has until March 2012 powertrain warranty for the next owner as well, and Sirius lifetime subscription (not sure if that stays with the vehicle when I trade or sell it).

Sammzway 08-03-2011 11:10 PM

Re: How do you negiate trade in on order?
 
You'll never get private party or even close to pp value from any dealers. Dealers will low ball you like there's no tomorrow. Since your trade in value is 12650, dealers will offer you anywhere around 8g to (at most) 10g. Unless you're willing to sell your Jeep by yourself privately, I'd say let it go for anything around 10gz. Obviously request 13+ but I highly doubt you'll get anything close to that from dealers. Remember, dealers will either try to sell it in their lot OR just wholesale your vehicle.

Although your Jeep sounds spectacular with warranty and coverage plans but dealers will not give a damn about any of that. You always lose money on trade-in, its a matter of convenience vs loss.

As far as financing your next vehicle goes, you should shop around for that yourself prior to going Jeep. Call capitalone bank, td bank, chase, citibank and any other bank you can think of. Even go to your local town bank and see what the auto loan APR they're offering. Then apply for whatever amount you need and the bank will (hopefully) approve your loan. Once your loan amount is approved they'll send you a blank check. You write the check to the dealer at the time of delivery. This way you're in charge of your APR and what not. REMEMBER, if you go through the dealership to finance your new JEEP, sometimes it can be much higher. It all varies on your credit / debt to income ratio and so forth.


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