Topic: How much of a hit will we take?

[ldp]

Hello everyone.

The CD forums were of great benefit to us overseas before we came home to Canada. We bought a 2005 Toyota CE with manual transmission last September back in Canada.

Even though it was agreed to in the begining, after many professional driving lessons for my wife and much encouragement and support...we have to trade the car in for an automatic..long sad story, huge mistake that I tried to avoid from the start assuring there was agreement and everyone was up to the challenge but it's got to a turning point under our current circumsatnces, where the car has to be go for an automatic.

I'm wondering, how do I avoid taking a hit dollar wise on trading the car in at 13,000 km in very good condition?  Do I trade to an older model 03 or 04? Is it evitable all tax is paid is lost?

I would appreciate the forums help once more, with all that's going on in our lives at the moment I'm having trouble dealing with it, I have to do it, but at the sametime I don't want to give it all away.

Thanks Folks

[mdxtasy]

If you trade it in, you get GST credit on the trade in value.....but they are more likely to offer you a lower price for the car.  Selling it privately means no tax credit but you may offset that with a higher selling price. 

[ldp]

Thank you MDX:

I'll get some numbers and compare the trade-in and market values on that basis. I'm just trying to get a grasp of everything I should be considering when looking at the numbers. I suppose every situation is different but I'm trying to avoid a loss but I think it's inevitable.

Thanks again.

[dorin]

That's really very regrettable.

I don't mean any offense, but if "after many professional driving lessons for my wife and much encouragement and support" your wife still can't manage to drive a manual, are you sure that she can safely drive an automatic?

[y2chuck]

Do you still owe $$ on it or did you buy it (as in paid cash, you own the title) ?

I think either way you're going to lose a lot on it regardless of private sale or trade.  They do hold their value well, but you will probably still lose a few thousand either way.

[toolatecrew]

You are gonna take a MASSIVE hit.

As soon as the new 06 Camary's came out the o5s took a hit. Any left on dealer lots would have incentives to clear them off. That couples with the unpoularity (relative) of manula tranny Corollas  makes it even worse.

I would definitly try to sell privatley. Dealers knowing you HAVE to go to an auto will drool all over the idea of stealing the trade. You may want to look intro getting a dealer to do a "courtesy trade" (mileading cause they CHARGE you for it).

FInd the new car you want make a deal. Then get the buyer of your used car to run the trade through the dealer. Its just a paper transaction but it can help you save tax $ as if its a trade while still getting a private sale price.

Whole Sale is 13,600 to 14,700

A CE with that low Miles is listed around 17 17 500 on Auto trader.

If you did a courtesy trade you could get into a 2006 Elantra without taking much of a hit but getting back into a Corolla is gonna hurt.

[Giant Dwarf]

For the most part I agree -- you will take a hit.  HOWEVER... two things are working in your favour.  1)  Corollas hold their value exceptionally well (i'm sure this was one of the selling points that the dealer presented you when you shopped the car originally).  This means that on the used market, you should get a good buck for it.  2)  If you want to trade, do it now before the new '07 Corolla comes out in a few more months.  Right now yours is still a current model.  But, since it is going to be replaced very soon, the dealerships are looking to move them out cheaply.  You may be able to trade in and make up some of the deficit with a better lease / finance rate than you have on your current Corolla.  Talk to your salesperson -- maybe they'll have some compassion and try to help you out in the interest of future business.

Either way, you will take at least a bit of a hit -- but if you're lucky, it may not be too bad.  That's the benefit of choosing a reputable, well-built and desirable car from the outset.

Best of luck to you (and keep us posted please).

 

[sirAQUAMAN64]

It's a coin toss.

If rates are low on new Corollas, your nearly new one looks less attractive.

But if you were financing at a higher rate, you would benefit from buying again at a lower one.

Maybe waiting a month or two for the cheaper Nissan Versa would be good?

[articsteve]

If you trade it in, you get GST credit on the trade in value.....but they are more likely to offer you a lower price for the car.  Selling it privately means no tax credit but you may offset that with a higher selling price. 

In every province except Alberta you get a PST and GST tax credit.

[articsteve]

Hello everyone.

The CD forums were of great benefit to us overseas before we came home to Canada. We bought a 2005 Toyota CE with manual transmission last September back in Canada.

Even though it was agreed to in the begining, after many professional driving lessons for my wife and much encouragement and support...we have to trade the car in for an automatic..long sad story, huge mistake that I tried to avoid from the start assuring there was agreement and everyone was up to the challenge but it's got to a turning point under our current circumsatnces, where the car has to be go for an automatic.

I'm wondering, how do I avoid taking a hit dollar wise on trading the car in at 13,000 km in very good condition?  Do I trade to an older model 03 or 04? Is it evitable all tax is paid is lost?

I would appreciate the forums help once more, with all that's going on in our lives at the moment I'm having trouble dealing with it, I have to do it, but at the sametime I don't want to give it all away.

Thanks Folks

Even though it was agreed to in the begining, after many professional driving lessons for my wife and much encouragement and support...we have to trade the car in for an automatic..long sad story, huge mistake that I tried to avoid from the start assuring there was agreement and everyone was up to the challenge but it's got to a turning point under our current circumsatnces, where the car has to be go for an automatic.

You are not alone.  Don't blame the wife; they can't help it.  Driving manual just doesn't come naturally.  In the GTA it's a nightmare and in hilly cities it's not good either.  I just recently moved my wife from a manual to an auto.

I'm wondering, how do I avoid taking a hit dollar wise on trading the car in at 13,000 km in very good condition?

On the sale of the car to a new 06 auto expect to lose 5K

However, you will realize about 2K in tax credits.  So expect to pay an additional 3K overall difference.

[hondasalesguy]

 if you can trade for the same car and only lose $3K you would be doing fantastically well. Basically there is only $1500 mark up in a Corolla. So let's say you paid $17,500 for a Corolla CE 5 speed + freight + taxes. You will likely get $14,000 for the same car on trade, because: the dealer paid about $16,000 from the factory for that car + freight (but forget about recouping the freight), so he will want to buy your car back for at least $2000 less, since it has to be resold as a used car, and more importantly, no incentive finance rates will apply when he resells your car. He has to price it thousands and thousands cheaper than a brand new 2006. You will also be paying the approx. $1000 price difference between 5 speed and automatic.

So if you pay $20K + tax, and get $14K on trade, that is $6000 difference, but at least you only pay tax on the $6K. I bet you will pay something between $6K and $7K out of pocket to trade on the same car but in automatic. Sorry for the bad news...

[No H2O]

I'm wondering, how do I avoid taking a hit dollar wise on trading the car in at 13,000 km in very good condition?

You take the smallest hit by selling it privately and dealing hard on the new car.

Call your local Toyota dealers and tell them that you are looking for a used Toyota (just like yours and no, don't tell them that you are selling yours) and see what they are asking. Check the Auto Trader as well for going prices.

Then when you buy the new car, tell them you have a car to trade in to a customer that you've sold it to. This way, you at least get to save the PST (you end up giving the buyer of your car, the amount of the GST). Dealers are sometimes reluctant to accomodate you, but I've done this numerous times...and don't let the dealer charge you some silly processing fee to handle the trade.

[hondasalesguy]

hcrv - the dealer wil need the Business Manager to spend some time facilitating this convenience trade. So they will probably expect some type of "silly" processing fee. But $100 should do it.

[barrie1]

As a suggestion you can have the dealer sell this car for you. It sits on their lot as if they own it but you do. They sell it for a higher price then what they would give you and is usually around $200. to $500. for their service. The disadvantage of this is that the car stays there and you have to be able to get around without it or replace it until it sells. You could have 2 car payments for a short time as well if this one is not paid for. 

[articsteve]

As a suggestion you can have the dealer sell this car for you. It sits on their lot as if they own it but you do. They sell it for a higher price then what they would give you and is usually around $200. to $500. for their service. The disadvantage of this is that the car stays there and you have to be able to get around without it or replace it until it sells. You could have 2 car payments for a short time as well if this one is not paid for. 

you can have the dealer sell this car for you

What kind of dealer?

It sits on their lot as if they own it but you do

Not on a Toyota lot it won't.

If one places their car on a consignment used car lot and a loss occurs on that lot or when somebody else is driving
other than the named insured consider yourself uninsured. 

[hondasalesguy]

this may be way out to lunch but...

if this guy is looking at $7K to flip from a 2005 manual to a 2006 automatic, what would it cost him to replace the transmission with an automatic one?

I know some of the wrenches in our shop have done this to their old ricers, Integras, Civics, etc if they originally came with automatics... But what about going the other way? Can it be done? How much $$ ??

[ldp]

Thanks to everyone for your replies.

I appreciate the possibly of reducing the hit by selling privately and/or looking at other new (less expensive) models.

There are some intangibles and personnals to factor in.
We like the model/colour of the original manual car and would like to keep in the brand.
This will probably make taking a hit inevitable unless we get an older model. We'd prefer to pay the price and keep a warranty so I tried to get the same yaer and model but in automatic.

On the personnal, my wife was diagnosed with breast cancer 2 months ago and one of older brothers died about a month ago as well, so while the world keeps turning I'm not interested in the time and effort
to try to move deals privately but I appreciate the rational. My wife needs to drive as she is home now, has alot of appointments which I don't necessarily have to be at all the time.

I found a few that were over priced in Toronto, better priced in Milton but settled on one "up the line" from Ottawa.
I had no interest in being feed to the lazy sharks at Tony Graham either.

Here are the numbers.

Original Manual
August 6 2006  (4kms)

17504.24
1060  Frieght
100  fuel consumption
199 Admin Registration
18866.24
1514.02 pst
1320.64 gst
-100 conservation rebate
21600.90
12700 deposit
8600.90 financed @ 2.9%

519.10 cost of borrowing



Trade-in to Automatic
May 2006 (25,000 kms)
(Carfax shows original registry as commercial fleet (Quebec))
(A second in Ontario late last year, sales said car was a rental in Belleville)
(The car drove well and was spotless)

17500
14700 Trade in

2800 difference
224.70 PST
196.00 GST
15.00 Licence Fee

7051.50 Outstanding loan on manual

10287.20 Cost for Automatic

3235.70 Cash

7071.50 Financed @ 7.5%

$ 1100 approx. cost of borrowing

Overall, considering the step-up to Automatic is $1000, I'm down $2816.60 (including additional borrowing cost), and lost approx.10000kms.
They gave me my side window visors (more rain guards than visors) block heater, tires and warranty.I might be missing something in ways I've taken a hit but I think it's not too bad to what I originally thought it might be and ...did i tell you my wife is happy?!!

So thanks to you guys, considering everythings that's happened in our lives lately I can walk away feeling I've done ok.
Not great but ok and my wife is happy and our daughter won't miss the arguments. Without your help I would have been alot less informed.

Thanks again, I really appreciated your advice and professionalism.  You're a great bunch of guys.

Cheers

ldp
 

[safristi]

 


 HOW mucha HIT 'bout this MOOCH.....

[articsteve]

You didn't waste any time switching vehicles.  Sorry to hear about your wife.  All the best.

[Giant Dwarf]

Thanks to everyone for your replies.

I appreciate the possibly of reducing the hit by selling privately and/or looking at other new (less expensive) models.

There are some intangibles and personnals to factor in.
We like the model/colour of the original manual car and would like to keep in the brand.
This will probably make taking a hit inevitable unless we get an older model. We'd prefer to pay the price and keep a warranty so I tried to get the same yaer and model but in automatic.

On the personnal, my wife was diagnosed with breast cancer 2 months ago and one of older brothers died about a month ago as well, so while the world keeps turning I'm not interested in the time and effort
to try to move deals privately but I appreciate the rational. My wife needs to drive as she is home now, has alot of appointments which I don't necessarily have to be at all the time.

I found a few that were over priced in Toronto, better priced in Milton but settled on one "up the line" from Ottawa.
I had no interest in being feed to the lazy sharks at Tony Graham either.

Here are the numbers.

Original Manual
August 6 2006  (4kms)

17504.24
1060  Frieght
100  fuel consumption
199 Admin Registration
18866.24
1514.02 pst
1320.64 gst
-100 conservation rebate
21600.90
12700 deposit
8600.90 financed @ 2.9%

519.10 cost of borrowing



Trade-in to Automatic
May 2006 (25,000 kms)
(Carfax shows original registry as commercial fleet (Quebec))
(A second in Ontario late last year, sales said car was a rental in Belleville)
(The car drove well and was spotless)

17500
14700 Trade in

2800 difference
224.70 PST
196.00 GST
15.00 Licence Fee

7051.50 Outstanding loan on manual

10287.20 Cost for Automatic

3235.70 Cash

7071.50 Financed @ 7.5%

$ 1100 approx. cost of borrowing

Overall, considering the step-up to Automatic is $1000, I'm down $2816.60 (including additional borrowing cost), and lost approx.10000kms.
They gave me my side window visors (more rain guards than visors) block heater, tires and warranty.I might be missing something in ways I've taken a hit but I think it's not too bad to what I originally thought it might be and ...did i tell you my wife is happy?!!

So thanks to you guys, considering everythings that's happened in our lives lately I can walk away feeling I've done ok.
Not great but ok and my wife is happy and our daughter won't miss the arguments. Without your help I would have been alot less informed.

Thanks again, I really appreciated your advice and professionalism.  You're a great bunch of guys.

Cheers

ldp

Glad to hear the car situation worked out for you.  All the best to you and your family.