OT: Car buying question

Kingfisher · #1 07-02-2012, 05:28 AM

Any car salesman here??? I've got a fairly new 09 honda that i want to sell or trade for a 2011 honda pilot. Question is, is it always better to sell privately rather than trade for a newish car that will cost $14K more than the 09? Is there anymore negotiating power with the trade vs selling outright?

Thanks for any advice.

biker72 · #2 07-02-2012, 05:36 AM

Not a salesman but it's more convenient to trade the old car in.
You'll get much more money in your pocket if you sell it privately.

christian · #3 07-02-2012, 05:51 AM

Quote:

Originally Posted by Kingfisher

Question is, is it always better to sell privately rather than trade for a newish car that will cost $14K more than the 09?

Yes.

Quote:

Originally Posted by Kingfisher

Is there anymore negotiating power with the trade vs selling outright?

No, but there are twice as many opportunities to get screwed.

Sell your used car privately.

Cinci Jim · #4 07-02-2012, 05:55 AM

You can maximize you savings by selling you existing vehicle privately and negotiating on the new vehicle as a seperate transaction.

Please realize in doing this the dealer now has only 1 transaction to make money off and so the "better" deal he was offering on a trade-in transaction may not be available as he was using a better profit point from one transaction to offset a weaker profit point of the other.

Also to consider is are you financing? If you are going with a vender the dealer brings to the table he is making money from that angle as well. The finance office is a real profit center for dealers if you are not careful about what you agree too.

Please also keep in mind that a dealer has to make money on the transaction, he is a "for profit" company.

BumbleBeeDave · #5 07-02-2012, 05:58 AM

. . . to the Kidney Foundation and take the tax deduction. That's what I did with mine. Didn't get as much as I would have selling it, but got a lot of satisfaction. They will come get it.

http://www.kidney.org/support/kidneycars/

BBD

MattTuck · #6 07-02-2012, 07:33 AM

If you trade it in, it is just one more moving piece in the salesperson's negotiating toolbox.

http://184.106.231.42/ideas/41821

Watch the video half way down that page. Pretty informative. That approach requires you to get a loan outside of the dealership and sell your car privately, but may result in the best price.

Otherwise, I'd probably go into the dealership (because, as posted above, it is WAY more convenient to just trade in the car. less hassle, less posting on craigslist, less strangers coming to test drive your car) and tell them you aren't sure what car you want to buy yet, but you're considering x and z model, and you want to know how good a price they're going to give on trade in, so that you can decide if you want to trade it in, or try to sell it privately.

Once you get a price quote for the car, compare it to KBB, Edmunds, etc. If it is a decent price, I'd go with that. If it isn't to your liking, I'd tell them you are going to sell it privately, and will be back when you have the cash from that sale.

crownjewelwl · #7 07-02-2012, 07:41 AM

keep in mind that when you trade in your car, you only pay sales tax on the overage

so whatever "premium" you get for selling your car privately, at least some of that will be eroded by more taxes

also, selling a car privately is a PITA

Chance · #8 07-02-2012, 08:30 AM

Quote:

Originally Posted by crownjewelwl

keep in mind that when you trade in your car, you only pay sales tax on the overage

so whatever "premium" you get for selling your car privately, at least some of that will be eroded by more taxes

also, selling a car privately is a PITA

+1

Also, many dealers are looking for good used cars because they make money from that trade also. If you are good at negotiating, you will use that to your advantage. The dealer can make money on the new car and also the trade, so he has some incentive to work with you. If you are not in a hurry and willing to hold your ground you can come out the same or better when tax is taken into account. And it's easier. In my opinion, of course.

zandrrr · #9 07-02-2012, 08:59 AM

I've always found that trying to sell a car on my own is way more hassle than it's worth. After all the time spent advertising it, meeting with people for test drives, negotiating, processing all the paperwork, it comes out more or less even with just trading it in for a bit less money up front and being done with it. IMO of course. Being "done" with something is very important to me.

If the time is less important than the money, you will always come out ahead selling your car to a private party.