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#1
10-13-2016, 06:24 AM
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OT: when to trade a car in
Maybe I'm stuck in an old school mentality. Just flipped 90k miles on our 2011 Chevy Traverse. Got me thinking if I should start looking at trading it in for something else...is there still the dreaded 100k drop-off in value?
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Last of the Famous International Playboys 
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#2
10-13-2016, 06:54 AM
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#3
10-13-2016, 07:12 AM
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there are basically two questions here from tele:
1) the actual question - answer - making some assumptions about what model you have, the rough trade in value of a 2011 traverse with 90k miles is $9600, and the rough trade in value of a 2011 traverse with 110k miles is $8600. that's based on the NADA blue book calculator. you're driving it about 20k miles a year, so driving it for another year will likely cost you roughly $1k or a bit more as it will also be a year older next year... 2) the implied question - should i just keep it? - YES! most modern cars should go to 200k miles, unless it's a complete dog without too much trouble. i dont know what that thing cost new, but it's already likely depreciated hugely, make some routine repairs and drive it into the ground. IMO.
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http://less-than-epic.blogspot.com/
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#4
10-13-2016, 08:54 AM
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We did buy it used so I guess I didn't get stuck with all the depreciation. I guess I was curious if the 100k milestone was an antiquated thing or still real.
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Last of the Famous International Playboys
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#5
10-13-2016, 08:56 AM
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chasing waddy
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#6
10-13-2016, 09:01 AM
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for me there is a point where you start spending too much to repair to make it practical to keep... I have a Highlander with 120k that I don't plan on getting rid of any time soon...
OR, you just want and a new car... 
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Be the Reason Others Succeed
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#7
10-13-2016, 09:13 AM
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Another factor is taxes. Some states allow you to trade-in a vehicle towards the purchase of a new one and only pay tax on the net price (after trade-in) of the new vehicle. Other states (f--- you California!) ignore your trade-in value and charge tax on the full value of the new car. Just something else to consider...
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#8
10-13-2016, 09:16 AM
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#9
10-13-2016, 09:52 AM
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ALWAY ALWAYS ALWAYS negotiate the price of the new car 1st before even entertaining getting your possible trade in appraised. Otherwise, you WILL get fleeced! I usually advise my clients once the repair costs approach 30% to 40% of the trade in value or what the car is worth, put a Band-Aid on the car and get out/dump it!
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#10
10-13-2016, 02:47 PM
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never sell a car you bought new. drive it into the ground. when the motor fails replace the motor from something that's been wrecked. it will take a lot of repair to equal the value of a new car, keeping it is always cheaper. you already bought the car, why do you want to do it again? if you replace a newly bought car like the traverse every 6-7 years, in 21 years you would have spent $100k just own a car, no sense in that. don't trade it in, buy another with zero down and keep the traverse as a back up with cheap insurance for when the new car needs to go to the shop. http://usedcars.about.com/od/avoidin...ur-sed-Car.htm
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Cuando era joven Last edited by cmg; 10-13-2016 at 02:49 PM.
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#11
10-13-2016, 03:24 PM
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A dealer prices your trade in to the auction market locally because they'll probably sell the car at that auction. Some cars may come close to matching KBB, but generally speaking KBB is super optimistic. Those dream cars? They get close to KBB. Like a 2010 Civic with 7,000 miles. Or other ridiculous cars like that. The more cynical will respond to "but KBB says my car is worth x amount!" with "then sell your car to KBB!" "They don't buy cars." "Exactly."
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#12
10-13-2016, 03:51 PM
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Heh.. I swear KBB is just there so the car dealers have a carrot to get you into the dealership... as soon as you negotiate they'll say they don't use KBB and give you a trade value vastly lower.
It seems amazing to me that a Traverse with 90k miles could ever be worth $9600. They MSRP'ed between $30-40k (seems like a lot) but I would have imagined they sat on lots and sold new at huge discounts like a lot of the other GM vehicles. GM products for all the bashing in the auto press seem pretty low cost to keep for the long run. Reliable and not that expensive to repair. Kind of a no brainer to keep. My parents had a bunch of GM vehicles that they drove 250k+ miles before moving on. Not exciting IMO but they sure got the job done and were seemingly smart moves financially.
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#13
10-13-2016, 04:58 PM
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If I had a nickel for every time I either heard or said that, I wouldn't be working!
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#14
10-13-2016, 08:03 PM
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Many ways depends upon how much you need the new technology like being able to go on the internet while driving and crap like that rather than actually driving.
Friend of mine who has 2 lease cars says technology changes so fast, need to only lease. Even convinced her kid, 25 year old living outside Boston (car livng on a street). Another friend has 88 chevy pick up and he said they will pry it away from his dead body - he wants a car he can fix. Personally I wouldn't go in, car dealerships are worse than having tooth extractions without nivocaine.... (having one tomorrow)
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#15
10-13-2016, 08:14 PM
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On leases - keep in mind that you do NOT own the car. You're leasing it.
Therefore if anything catastrophic happens - it ended up under 5 feet of water due to Hurricane Matthew, you got t-boned by a drunk, whatever - then you get ZERO dollars of insurance for the car. The collision coverage goes to the car's owner, the leasing company (we'll call it that for simplicity sake). So with a lease you really want to put as little down as possible. Roll everything into the lease, the sales tax, the acquisition fee, everything. Payments will be higher overall but that's okay, you're out as little as possible if something bad happens. Plus if you have a good lease rate the interest won't be killer. Significant, yes, not free, yes, but not absurd. If you're trading in a car that you already own, don't put the car equity as downpayment. Get a check from the dealer. "You can trade your car in and your payments will be only $99/mo because your car is worth $10k". "Write me a check for $10k and tell me what the lease payments would be." Remember also that lease rates can be adjusted legally by the dealer. They can add a point or whatever without telling you and that's okay. If you agree to the terms it's all good. Get a lease calculator, understand how a lease works, and see if the dealer is adding 1% or more like I've seen done across the board. If you're writing it off on a business, you want to put as little down as possible because generally only the payments are deductible, not the down payment. I'm not an accountant but that's what I heard, but not sure if it's specific to CT or if it's Federal. I'm not going to wake up my wife to ask her but she's the CPA.
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