Topic: What if the trade in is worth more than the new car?

[exJunkie]

If trading  in an expensive vehicle for a less expensive one would the dealer give you a cheque for the difference? Just wondering ?

[Panzer]

From what I heard, yes.  But you won't get as much for the trade as you would buying a more expensive vehicle.  If the difference isn't that much, try negotiating freebies like oil changes and service GCs (gift certificates).

[ovr50]

If trading  in an expensive vehicle for a less expensive one would the dealer give you a cheque for the difference? Just wondering ?

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I have done that in the past, and rec'd a cheque. Depends on the deal you are making.

[toolatecrew]

From what I heard, yes.  But you won't get as much for the trade as you would buying a more expensive vehicle.  If the difference isn't that much, try negotiating freebies like oil changes and service GCs (gift certificates).

This isn't really true.

If you buy a "more" expensive vehicle" they arelly are not giving you "more for the trade" they are taking a discount on the price of the new vehicle to inflate the "trade value' .

I've heard it a 100 times. What is my car worth :

"well that depends if you are buying a Corolla its worth X but if you are buying a Camary I could show you X +Y"

I wonder ..since they are effectivley "buying" the car from you and applying that value towards the cost of a new vehucle..you save the taxes. but if they end up giving you 5000 and a new car does someone need to pay the tax on that $5000 somewhere?

[sterling]

But you won't get as much for the trade as you would buying a more expensive vehicle.

It makes no difference if the new one is less or more expensive than the trade-in.

[ovr50]

Based on my experiences, I agree with Sterling and toolate comments above.

[Panzer]

Like I said, I'd never done this before so it was mostly what I heard from others.

You learn something new everyday!   

[ovr50]

It's doable, and as I posted above, I have done it - but be aware that not all dealers will want to do that kind of a deal, since it adds a more expensive car to their used inventory and they are temporarily out of pocket for the cash difference they give you. You may have to shop around a bit, be forwarned.

[sterling]

It will make no difference whatsoever in your negotiations. If a dealer is worried about "being out of pocket" a few thousand dollars they probably only have a stock of 2 or 3 cars. Out of an inventory cost in the millions a few thousand dollars is spare change in terms of the dealership's cash flow.

Bottom line: the dealer will sell his for more than he is into it for; and he will buy yours for an amount that lets him re-sell it for more.

[articsteve]

I think most people assume that the trade in is worth less than the new car being purchased. However, I am planning to trade in  my current vehicle (Audi 1.8T 2002 88,000km AT) for a car that is probably around the same price or maybe a whee bit less money (Honda Civic). So that is why I was wondering if a dealer would ever give me money back if my trade in vehicle price comes in at over the price of the new car. TY.

If your are able to trade even for a DXG auto it would be a great deal.

[johngenx]

Just out of curiousity, I was asking a friend of mine (owns a major dealership) what my own car was worth, so I asked him what a 2002 A4 1.8T AT- 88K would fetch on trade.  He said if the car was clean and he could basically resell it as is, he'd buy it for about $16,500-$17,000.  He also said that it didn't make any difference what you bought from him, he'd be giving you the same.  So, if you bought one of his $19,000 Mazda3's, you'd get $17,000 and simply pay the difference.  He's had lots of people move from more expensive cars into a Mazda6 or even Mazda3 and cut them a cheque for the difference between the new car, the buyout, and the value of their existing car.

Anyway, I'm not sure what the car would retail for, but I'd bet that $17K or so is a fairly accurate wholesale value, at least in the Edmonton area...

[johngenx]

Oh, and in case any Mercedes owners are wondering, he told me he'd give me $8500 wholesale for my 1998 C230 with 190,000kms.  With most retailing around here for about $12-13K with similar mileage, I'd sell it myself.

[gosteelerz]

If your trade-in car is worth more than the new one make sure you do not pay any PST or GST.

[The Mighty Duck]

Oh, and in case any Mercedes owners are wondering, he told me he'd give me $8500 wholesale for my 1998 C230 with 190,000kms.  With most retailing around here for about $12-13K with similar mileage, I'd sell it myself.

You think that's bad?  I was told I'd get $4500 for my Honda, which they would then list between $9-10k.

[articsteve]

I didn't want to say it but 17K is about the wholesale number on that car.  If it's fully optioned and the right colour with new rubber you could be looking at 18K but the demand on those cars is poor.  Its  a market perception of used Audis.  Once you get over 80K km the price takes a nose dive.

[Craig]

Don't mean to threadjack, but I'm curious.  Is the perception correct?

[exJunkie]

Wait until I have it sold before you answer that 

[johngenx]

You have to remember that the Audi is not a mainstream car like an Accord.  Any dealer buying it might be stuck with it for some time, or maybe not.  It's the risk of it sitting that means a big gap between wholesale and retail.  If you had a 2002-2003 Honda, you'd be looking at a bit better wholesale value, BUT the reality is that if you're going to trade, it's going to cost you.

If they're easy to sell at $23,995, then take a week or two and sell you car, take the cash and go buy your new car.  I would suspect that the typical REAL selling prices are in the $21K range, which is still substantially more than than the $17K or so you'll realize trading.

[articsteve]

Don't mean to threadjack, but I'm curious.  Is the perception correct?

Yes, the 1.8T is a known sludge motor so that has a big effect on resale.

The Audi A4 is an automobile series assembled by Volkswagen Group, first sold in 1995 as a 1996 model, replacing the Audi 80. It was based on the B5 and had the same chassis until a redesign in 2002. One distinction was the engine orientation — it is longitudinal, which is more often found in rear wheel drive cars. It was first only available with a 2.8 liter 172 horsepower V-6 until 1997, when the 150 horsepower 1.8 liter Turbo inline-4 was introduced. This engine was affected by an oil sludge problem.
 

[Scaerio]

Just sell the darned thing yourself.  You'll get more for it than any dealer will give you.