Tips on trading-in

otron

Hi,

I'm looking at trading in my first car to move up to something a little bigger. Since I've not done this before I'd be very interested in any tips people have in terms of dealing with the dealerships..

For example
- If the going rate for my current car is 4K-4.5K, is there any hope of getting near this price on a trade in? My view is that I should get pretty close to it as the dealer will be making money on the price of the car I'm buying, so I don't like the idea of them making money on both ends. Is this remotely realistic?

- (Ignoring the question above) I know that the asking price is more like a target then a fixed number - what sort of discount should I expect to be able to get with a normal level of negotiation? I.e. if I have 6K to spend, should I be looking at cars priced at 6.5k? 7k?

- Whats a reasonable guarantee to expect from a decent dealer?

- Am I right in thinking that mileage is more important then age, to a certain extent? I.e. would you choose between a 2004 car with 90K on the clock, or a 2001 with 50K?

- What's the max mileage you would consider buying? regardless of age..?

Any info and general tips greatly appreciated!

mickdw

I would spend a few hours looking around at trade in deals and then compare that to straight prices. You will find that you are getting alot less for your car than you thought.

squod

otron wrote: »

Hi,

I'm looking at trading in my first car to move up to something a little bigger. Since I've not done this before I'd be very interested in any tips people have in terms of dealing with the dealerships..

For example
- If the going rate for my current car is 4K-4.5K, is there any hope of getting near this price on a trade in? My view is that I should get pretty close to it as the dealer will be making money on the price of the car I'm buying, so I don't like the idea of them making money on both ends. Is this remotely realistic?

- (Ignoring the question above) I know that the asking price is more like a target then a fixed number - what sort of discount should I expect to be able to get with a normal level of negotiation? I.e. if I have 6K to spend, should I be looking at cars priced at 6.5k? 7k?

- Whats a reasonable guarantee to expect from a decent dealer?

- Am I right in thinking that mileage is more important then age, to a certain extent? I.e. would you choose between a 2004 car with 90K on the clock, or a 2001 with 50K?

- What's the max mileage you would consider buying? regardless of age..?

Any info and general tips greatly appreciated!

Whats the car you're selling OP? Make, model, year. Have you though about selling through the auctions? I said it here before, I'd definately consider selling through an auction. Seems as if cars sold through are getting market value. I wouldn't buy there though.

mickdw

Yep, alot of stuff going alot more than trade price nowadays at the auctions.

otron

Sorry didn't include detail.

Selling - 2001 Yaris, 58K miles on the clock.

Looking at - 2003-2004 Focus hatchback

I'm being given a ball park of 3K over the phone whereas the market price on carzone seems to be approx 4-4.5K. The difference seems a little big, but this might be the norm - in which case I'd be looking to negotiate on the price of the car I'd be buying, not that theres much difference.

Interesting tip on the Auction.... I assume it's possible to set a reserve price?

Drummerboy08

otron wrote: »

Sorry didn't include detail.

Selling - 2001 Yaris, 58K miles on the clock.

Looking at - 2003-2004 Focus hatchback

I'm being given a ball park of 3K over the phone whereas the market price on carzone seems to be approx 4-4.5K. The difference seems a little big, but this might be the norm - in which case I'd be looking to negotiate on the price of the car I'd be buying, not that theres much difference.

Interesting tip on the Auction.... I assume it's possible to set a reserve price?

Look at it like this.

The Yaris may be worth say 4k, but for a few different reasons, you will never get the actual value on trade in.

- The dealer will have to service the car - Could cost up to 300 euro, depending on what needs t be done

- The dealer will have to valet the car - around 150 euro for the PROPER job (carpets, seats, roofliner all removed and shampooed)

- May need tyres - for a Yaris I'd be allowing 60-80 euro per corner.

- Margin for the dealer - Allow 500 quid.

So, if you add all these up, it comes to around 1000 euro. Add a little room for him to manouver when it comes to selling time, and it comes into 1500 euro.

Now its important to understand the above. Your first post suggested at a discount on your potenial new car of around 500 euro. Thats where the room for the dealer to move comes in.

You also hoped to get the full (or close) market value on trade in. If everyone expected this, there would be no money in any deal for the dealer, so why would he bother? He'd make more money on the dole.

Now, any of the above may not need to be done, but as you said, you've only got prices over the phone. Let the dealer see the car, and he'll decide how much he needs to spend on it to get it to retailable condition.

Hope this helps.

otron

Fair set of points Drummerboy ... I wouldn't imagine that a dealer would bother with all those 'enhancements' to a little car of that value but I hear what your saying. Bottom line is that once they see it, these specifics would be clear.

I totally get it that the dealer needs to make money, and that I can't expect to get a good price on my trade in AND a discount on the asking price of the new car... I just don't want to let them roll over me at both ends, so to say

Thanks for the info folks - I'm still interested in any general tips on handling car dealerships that you might be willing to share!

squod

otron wrote: »

Sorry didn't include detail.

Selling - 2001 Yaris, 58K miles on the clock.

Looking at - 2003-2004 Focus hatchback

I'm being given a ball park of 3K over the phone whereas the market price on carzone seems to be approx 4-4.5K. The difference seems a little big, but this might be the norm - in which case I'd be looking to negotiate on the price of the car I'd be buying, not that theres much difference.

Interesting tip on the Auction.... I assume it's possible to set a reserve price?

Yeah You can get reserve, at the auction, You'll probably get the 3k for it.
Ford focus is probably the most reliable car out there. And stuff is generall cheap to buy for them. Have a look at a private seller in buy and sell, then get your local garage to fully check over the one you want to buy.

Use mywheels.ie for free simple background checks anyway.
http://www.mywheels.ie/Homepage.aspx

CharlieCroker

My main advise for a buyer is to look, look and look some more. don't buy in the first place you go into, unless after seeing a few, they're giving you the best deal. Play the dealer's off of each other i.e. "I can get the same car from another dealer/dealer x for €500 less". Also, don't obviously fall in love with a car in front of a salesman, he'll have you exactly where he wants you. Make him or her SELL you a car, not act as if they're doing you a favour. and finally, don't be afraid to walk away if the deal doesnt feel right to you.
Best of luck