Topic: Getting Better Trade In Value For Rediculously Low Mileage

[dougjp]

I haven't been able to find the equal of my situation in the Forum, or when looking at used car asking prices when doing a search at places like autotrader. Have been to the Black Book via the Toyota site to get shocked. 

I'm retired, have a 2003 Jetta GLS 1.8T with the sports luxury package. It has 9,300 km, which is about equal to 6 months of normal driving. I'd sell it privately however probably couldn't put up with the aggravation.    Call it cabin fever, not being able to shed being a 'car guy', but also wanting to move to an automatic so my wife can also drive...I'm looking for a change.

Has anyone heard of car dealers taking a car like this on consignment as a pending trade with a prearranged profit margin or bottom line selling price, if successful in selling it? In other words, get better value as a trade by virtue of not tying up their funds with used car inventory?
   

[airbalancer]

Probably best to put into Autotrader

[toolatecrew]

You will get "aggrivation" either way.

The work of selling the car provatley OR dealers lowballing you by throwing the HIGH blackbook value in your face and saying I'm giving you MORE than the HIGH black book value I can't do any better.

Blackbook does not work well for cars with really low or high mileage.In fact that low mileage can be a warning flag (in your case an incorrect one) to many people.

Less than 10000 KM on a 2003. Pleople will wonder (when looking at the ads etc) if it was in an accident, had the odometer rolled back or was maybe a Hurricane Katrina flood car.

Maybe some current car sales people like HSG can say different but I'd say there is no way you are getting close to what you value that car at on a trade in. Its just too far outside the norm.

I HVAE seen dealers or used car dealers take cars on cossignment. BUT not as a trade. Either YOU sell it, you trade it and they sell it or you PAY someone else to sell it.

Like I said its going to be agrivation in one way or antother. Depends on what you feel the least agrivation will be. Taking a bunch fo phone calls and selling it or listening to the speil about why they can't give you more and taking a bath when they "steal " your trade.

I think that you could sell that car easily with the right AD. Especially if you are in a smaller place where people know you. Its what I call a grandpa car and if I were looking for a used Jetta I would target one like that.

I can tell you that in tottal oss situations there is a CAP regarding how much value will be added for excessivley HIGH or LOW milage. At a ceratin point a car with 9000 Km on it really isn't worth more than one with 15,00Km on it.

[wing]

Yeah there is an '05 TSX with 3000 km for an ununsually low price on autotrader, makes you wonder

[barrie1]

As a suggestion to you figure out which make and model of vehicle you would like to go to and ask the dealer to broker the car thru for you. Its usually around a set fee of $200. to $500. of your asking price. They sell it for you as if they own it but you get the profit from it. I have done this years ago and the dealer got me almost $1500. more then he was offering in trade-in for it. The moneys better in your pocket then his. If that dealer won't work with you let your fingers do the walking as it will be worth it in the long run. 

[84im]

You will probably have to sell it privately to get anywhere near what you think it's worth.  What part of the country do you live in?  The selling prices are higher in the west.

[dougjp]

Thanks guys, lots of great advice, information and ideas here. Unfortunately I'm in the GTA, not the west. I don't say that because of car prices, but because we have vacationed in Kimberley, Radium and Golden 

I'm in no rush so maybe the right combination for selling and buying can be found. My aversion to test pilots along with the 'generation gap' probably means paying a fee instead of doing it myself. Been there, done that, now too old. 

[CarCost Pres]

I haven't been able to find the equal of my situation in the Forum, or when looking at used car asking prices when doing a search at places like autotrader. Have been to the Black Book via the Toyota site to get shocked. 

I'm retired, have a 2003 Jetta GLS 1.8T with the sports luxury package. It has 9,300 km, which is about equal to 6 months of normal driving. I'd sell it privately however probably couldn't put up with the aggravation.    Call it cabin fever, not being able to shed being a 'car guy', but also wanting to move to an automatic so my wife can also drive...I'm looking for a change.

Has anyone heard of car dealers taking a car like this on consignment as a pending trade with a prearranged profit margin or bottom line selling price, if successful in selling it? In other words, get better value as a trade by virtue of not tying up their funds with used car inventory?
   

Hi dougjp,

If you are planning on getting another car, your best bet will probably be to trade it in to get the tax savings. For example if your car is worth $20,000 as a trade you will also get a tax credit of 15% or the equivalent of $23,000. The chances of you selling it privately for more than this are very slim. Remember, people who buy privately are looking to save money, not pay more. Plus a VW dealer can sell your car with a VW backed extended warranty and preferred finance rates that you can't offer.

Selling cars privately usually only makes sense with cars under $10,000 due to the factors above.

Once you've decided on the new car you want, send me a PM and I'll try to get you the most for your trade, regardless of where you buy your new car.

Cheers,
CCPres

[Benhaze]

It's a tough call. I am not as optimistic as carcostpres based on my personal experience. You do need to factor in the sales taxe savings and the no stress factor of trading your car in as long as the numbers makes sense. My personal vehicle is in a "showroom condition" with a lower Kms than what is considered average and yet I had some dealers offering me up tp $6000 less than the average blackbook value. Meanwhile, some dealers are selling 2 year Lexus SUVs for $6,000-10,000 above the blackbook values. I tend to agree with another post stating you won't get a good value for such a low mileage.

The only dealers typically willing offering above blackbook values are the hungry Big3 dealers because they are under pressure to move their new cars.

A few years back, I sold my car through the dealer that was willing to wait before finalizing the transaction. The dealer had garanteed me a trade-in value but I was able to sell it at a higher price with 3 weeks.

Any chance you could find or hire someone to at least test the market for you? The broker idea is interesting if you can find a dealer willing to do it. It is a common thing for boats; never heard some car dealers were doing it too, but definitely worth a try.

[ktm525]

I haven't been able to find the equal of my situation in the Forum, or when looking at used car asking prices when doing a search at places like autotrader. Have been to the Black Book via the Toyota site to get shocked. 

I'm retired, have a 2003 Jetta GLS 1.8T with the sports luxury package. It has 9,300 km, which is about equal to 6 months of normal driving. I'd sell it privately however probably couldn't put up with the aggravation.    Call it cabin fever, not being able to shed being a 'car guy', but also wanting to move to an automatic so my wife can also drive...I'm looking for a change.

Has anyone heard of car dealers taking a car like this on consignment as a pending trade with a prearranged profit margin or bottom line selling price, if successful in selling it? In other words, get better value as a trade by virtue of not tying up their funds with used car inventory?
   

You are in a tough situation. The problem with your ultra low mileage car is that the warranty has a time limit. I will assume your car has been in service for three years now. This leaves you with 1 year of warranty. I would sell privately, the low kms will attract buyers but not necessarily a lot more money. Unfortunately you will not get a huge premium for very low miles. Maybe an extra 1 or 2 thousand extra over a similar model with 40k kms..

Is this the amount you usually drive? If so you should consider used high mileage cars. In a few years of driving the miles would be 'normal' and you may be able to flip the vehicle for around what you paid for it.

[wing]

Yes if you drive little, your better off purchasing a newer model high mileage version to offset your driving, bonus is you get pretty much all your money back on resale.

[ktm525]

I would but a premium used high mileage car like a BMW 3 series etc.

If your Jetta is three years old. I will assume you bought it for around $30k? Since the high end black book is $16k I woud think you could get $18k privately.

$30k-$18k = $12k

$12k/9300 = $1.29/km

Rather than selling why don't you get you ECU reprogrammed "chipped" for an extra 40 HP+. It will seem like a new car and will only cost you $600.

[CarCost Pres]

I would but a premium used high mileage car like a BMW 3 series etc.

If your Jetta is three years old. I will assume you bought it for around $30k? Since the high end black book is $16k I woud think you could get $18k privately.

$30k-$18k = $12k

$12k/9300 = $1.29/km

Rather than selling why don't you get you ECU reprogrammed "chipped" for an extra 40 HP+. It will seem like a new car and will only cost you $600.

dougjp has already said that he wants to get an automatic for his wife to be able to drive it.

Also, if a dealer will pay the top blackbook price of $16,000 (which sounds low by the way), why would you sell it privately for $18,000. As a trade you will also get the tax credit of 15% which is $2,400. That's like getting $18,400 without the hassles. Doesn't make sense, unless he wasn't buying a new car, which he said he was.

CCPres

[ktm525]

That is a big IF. Maybe private $20k?

[CarCost Pres]

That is a big IF. Maybe private $20k?

You are absolutely right. I hate ifs and maybes.

I just checked the Feb/06 blackbook and a car as described  "2003 Jetta GLS 1.8T with the sports luxury package. It has 9,300 km" is listed as follows:

2003 VW Jetta GLS 1.8T
Extra clean (which this car certainly is) $16,700
alloy wheels - add $150
leather - add $400
sunroof - add $500
Total - $17,750 (I knew the $16,000 quoted above sounded too low)

I would gladly buy it for this price, with no strings attached. I can turn around and sell it for $19,000-$19,500 with no problem.

Plus, I'll even buy it through the dealer he buys his new car at, so that he can get the tax credit. Total value $17,750+ the tax credit = $20,412.50. He would have to sell it privately for at least $21,000 to make worth his while.

You see, used cars this expensive are rarely worth selling privately. All you end up doing is giving the government a ton of extra taxes.

CCPres

[sirAQUAMAN64]

My brother might want that car for his wife... they have an '01 1.8T Wolfsburg Edition bought as VW CPOwned that they both like. Not sure she wants a manual though, and last I spoke they were looking at 1.8T Wagons. We're east in Oshawa... and yourself?

I would urge you to sell it by June. In the fall, the City Jetta IV will be reintroduced into the Canadian market. It'll only have the 2.0L, but with the price drop they're hinting it, it will affect resale values for cars like your own.

[ktm525]

You are absolutely right. I hate ifs and maybes.

I just checked the Feb/06 blackbook and a car as described  "2003 Jetta GLS 1.8T with the sports luxury package. It has 9,300 km" is listed as follows:

2003 VW Jetta GLS 1.8T
Extra clean (which this car certainly is) $16,700
alloy wheels - add $150
leather - add $400
sunroof - add $500
Total - $17,750 (I knew the $16,000 quoted above sounded too low)

I would gladly buy it for this price, with no strings attached. I can turn around and sell it for $19,000-$19,500 with no problem.

Plus, I'll even buy it through the dealer he buys his new car at, so that he can get the tax credit. Total value $17,750+ the tax credit = $20,412.50. He would have to sell it privately for at least $21,000 to make worth his while.

You see, used cars this expensive are rarely worth selling privately. All you end up doing is giving the government a ton of extra taxes.

CCPres

I was using the Canadian Black Book site. I didn't have the leather and sunroof in my first price. Your price sounds good but there  must be a deduction in price because of the manual transmission? Either way I have yet to be offered "top black book valua" from any dealer. They usually land in the middle.

As for taxes, your statement only rings true if buying from a dealer. Privately there is NO tax in the sale and NO tax in the buy. One of the reasons that I try to buy used from a private seller. Plus, alberta is a dumping ground for used cars from down East. Who knows what those cars were put through. By buying private you can see/judge the seller yourself.

[dougjp]

Well I've got to say, the Forum is most impressive. Lots of ideas, perhaps raising more questions as others are answered. However no problem, I have time to weigh everything and (hopefully) find all the answers I need. I referred the Forum to a friend, his comment was how there was a higher intellect level here that other forums. 

I'm located in Thornhill. Yes my cost per km is absurd beyond reason, and my future (lack of) driving kms isn't likely to increase either. I did the same "gift" when getting rid of my previous car, a Prelude. I was retired for part of its ownership period too and it had low kms but not like this one. However my wife has a few years left before retirement and does commute. The 'plan' was I could use her 7 year old car for the little I need one during this time.

Yes the car has a bit over 14 months of warranty left, and initially it was on my mind this was as good a time to sell as any. It doesn't have leather but has the power sunroof, 17" alloy wheels and the other sports luxury package things. Platinum grey colour. Yes I saw the black book numbers as mentioned in the initial post. I also saw retail asking prices for identical cars with +50,000 km by dealers of 21.8k. I thought I could get a premium of, as ktm525 said, " Maybe an extra 1 or 2 thousand extra over a similar model with 40k kms" - call it 1,500- even though I'm comparing with 50k kms cars. Then subtract from that the discount from those 50km+ car asking prices to actual selling prices, subtract another few thousand for dealer costs and profit, and I came up with a trade in value of $20,000-. Then subtracted another 1,000- for wishful thinking  , and came up with a $19,000 trade bottom line. Below that I would feel the trade would have been "stolen", using a term in one of the responses, and I would naturally lose interest in the whole thing. That trade amount equates to a private sale price of $21,850- plus my sundry costs, in order to recoup the tax loss in buying new.

From the posts it sounds like I was out to lunch somewhere! Its too bad because somebody would get a jewel at a modest premium over average.     

[ktm525]

Keep it. Chip it. Teach the wife how to drive a stick.

[ju1ce]

From experience, as of about 3 weeks ago.

I sold a Cobalt that was 7 months old, 11,970km's and got about 1100 over the blackbook value because of KM's. At the same time, I lost less because I bought it during that "employee" discount GM had. I ended getting away pretty decent with trade-in.

I traded it in at a Honda Dealership, as a downpayment for a Honda CR-V.

I walked away happy both with my trade, getting rid of the GM, and with the price, and options added because of "dealing".

He originally "gave" me a "200" dollar more than the black-book for the trade-in.. I was heading to another city that weekend and was going to look at the dealership's down south.. He changed his tune pretty fast because he knew he had a sale, he just had to give the right price for the trade in.