Trade-in process?

[ohioyaker]

Sorry for the stupid question, but I have never bought a new car, and I hope that an FJ will be my first!

I have a Junker 1998 Jeep Wrangler, and I need to get a good idea of what type of trade-in value that I can expect. Kelly Blue Book is between 3-5k, NADA (retail?) is between 6-8K. I don’t expect to get very much for the Jeep as the transmission is slipping, and there are a host of cosmetic issues. However, the amount that a dealership will give me for it will greatly impact when I’m able to get an FJ. Obviously, the more I get for the Jeep, the less that I will have to save for a down payment. It is my only transportation, and I will be forced to take what the dealership will give me (I don’t know that I would feel good about selling this Junker to anyone other than the dealership anyway).

So, what is the best way to get an idea? Would it be appropriate to take it to a dealership, and have them give me an estimate even though I have no intention of making a purchase within the next couple of months? Just unsure of how the process works.

Thanks!

[TheDudeAbides]

Try to sell the it on your own and then go to the dealer with cash. If you have cash in hand you can do a little better when buying. Also, you can search the internet and see what similar jeeps are selling for then you can get an idea of what to ask for. As for taking it to a dealer when you are not ready to buy I would not suggest it. Unless you are a seasoned car buyer they will eat you alive. If you do this two things might happen. First, If you tell them that you are not ready to buy the salesperson might just give you a card and tell you to call them when you are ready. Second, they might run all these crazy numbers on you showing how you can afford it and that you can do it now. This will make you feel that you need to buy it now because of the great deal you think they are giving you. Also, don't go on a test drive. That is their way of getting you in the car and working you, so you buy it. Anyone on this forum will tell you it rides great. If you do go to the dealer to just get info don't give them your phone number. A friend of mine was going through the same thing you are a few years ago. He wanted to by a new BMW 3 series, but he had a year old Dodge Pickup that he financed. i told him to wait for me. but he really wanted this car to impress some girl. Well, he went to the dealer and tried to tell them that he was only looking. They put him right in the car, took him out on test drive, told him to not worry about what he owed on his Dodge they will pay it off. The Outcome, he bought his car they gave him next to nothing for his truck and rolled the balance into his ne w car. He was then upside down with his car and basically paying for a truck he did not have anymore with his new BMW.
Just be careful bro!
Try this site: It has alot of good advice for buying cars.
Buy New & Used Cars, Research Prices, Sell My Car, Find Auto Dealers

Good luck.

[1 Bored Clerk]

Sell it by yourself if at all possible. When you are looking at a trade in value in KBB or NADA, you have to look at Wholesale or Trade-in values...not retail. Retail is what you might use in a private party sale. (you selling it to some other individual) In some instances and for some people, taking a beating on the trade in is worth it for the 'convenience' of having everything done at the same time. I've never had a problem selling outright so that's what I do. It's not hard and gives you more cash to work with. Good luck.

[ohioyaker]

The Jeep is my only source of transportation, and I would be forced to purchase the FJ the day that I made the sale. I understand that selling it privately would be more advantageous, just not practical for me.

[indecis]

Yes, you will be lucky if you get 3k. Also, the dealer is going to confuse you with the sale price, the trade-in, the loan, the processing fees and some of their other tricks. At the end you will never figure out how much you are buying your car for. Sell the Jeep yourself.

[max-9]

Tell them youre not trading anything in.
Get your best price on the FJ.....the out the door total , Know what finance rate they are giving you.
Now you have a price , and financing %.
Then ask them how much would they take off that price if you traded in your jeep.
They will probably tell you to sell privately or give you a low trade in value......The dealer has to make money somewhere , and they will or they wouldnt be in buissness.

PS
I got $1500 off msrp
and $6000 trade in for a 2000 Wrangler.
Good enough , let them sell it and make a few $$

[Pinker]

Your going about this the wrong way.

Don't look at your trade as a down payment on a new vehicle. If you do, you will not get a fair deal in the end.


I highly suggest you read "Confessions of a Car Salesman" available on Edmunds.com. It will give you great insight into getting a fair shake on a deal and how to negotiate. Also how dealerships work and how they profit.

new vehicle - your trade = what you want to finance

NOT

new vehicle - your trade = what your willing or can finance

[Northshore Voodoo]

First off I am not an authority on this and this information is based on my past experience form selling cars which was up until about 9 yrs ago.

1.) Find out in the area that you live in if the dealers use the NADA or the Kelly Blue Book. Things differ depending where you are located. Something that might work in one part of the country might not work in your part. When you go for a test drive you can ask them.

2.) Reasearch trade values online. When estimating a value use " Trade in value " from NADA or Kelly Blue Book. The only time there maybe an exception to this rule is if a car is a "dime a dozen" type and there is not much market for it, then you would want to use the "wholesale" value. Do not add for every option under the moon. Just because these books have adds for certain equipment does not mean to add for it because some models or trim levels, SE, LE, LTD... already have this equipment figured into the base trade in price. You want to add for things that are not standard but are big ticket at time of purchase, Leather, Sunroof, Navigation.... Unless your car is the biggest piece of crap do not deduct for tranny slip only for body damage, faded paint... let them figure out that the tranny slips or just put Motor Honey in it until you sign on the dotted line.

3.) I Strongly DO NOT recommend saying that you will be paying cash. Dealers are less likely to discount as much off of the price of the car if they are not getting your financing. Be vague and tell them that it depends on what you can do! Make them think they have a shot of doing your financing because the Salesman does not like to talk rate, instead they want throw you in "The Box" and let the F&I manager work his magic. Then that is when you spring it on them after hearing their pitch that you want to pay cash.

4.) Research the estimated MSRP and dealer invoice prices. This can be done through Kansas Law Dogs price estimator calculator on this forum, just do the search and it may even be a stickey. You can also check at Edmunds.com which is fairly accurate.

This is how I bought mine and the deal that I got:

I went to the dealership in my town for a test drive. After the test drive the salesperson wanted to get me in the showroom and work a deal so I agreed. Went throught the normal B.S. paperwork and Q&A session. I gave the the keys to my possible trade and I made them aware that I may trade it or sell it but I am not sure because I do not know what it is worth. I do however have a buddy interested in purchasing it but again I do not know what it is worth.

After the appraisal I would not commit to a purchase because I promised I would give my buddy the oppurtunity to by my vehicle first. ( What I am doing is setting myself up to be a "be back" in there eyes because they see that I am not purchasing this evening however they want me to come back and buy from them.) Me knowing all of this information beforehand I nicely baited them for what I wanted, INFORMATION. They do not want to spoil a future sale if it cannot be had tonight but at the same time they do not want to give me figures to go out and shop with that can easily be beaten. What happened next was what I wanted the most, the Sales Manager to come speak with me and he did and I got some figures from him and his business card which is very important because he is who you want to deal with from now on!

So when I left that night I had a value of $18,000 for a trade in and $3,000 discount off of true MSRP. ( True MSRP is Toyota's sticker and not the B.S. adjusted market value that the dealers tack on first year vehicles or high demand vehicles.)

I got the info I wanted, test drove the FJ and I did not beat up the saleman or get into a p!ssing match with him about the price of the car or my trade. I also met the Sales Manager and got his business card.

I reasearched the value of my trade online at Autotrader website which I think will give you Kelly Blue Book values which is what they used in my area. So the Blue Book values where: $ 21,000 trade in, $ 24,500 person to person sale and $28,000 retail. I offered the trade to my friend for $24,000 (which he accepted) because I figured that the price quote given to me as a trade in from the dealer was $18,000 + the $3,000 MSRP discount = $21,000. Which as you can see is what the Kelly Blue Book trade in value. So essentially I figured full trade in value of $21,000 and MSRP for the FJ.

I called the Sales Manager and told him that I would sell the trade on my own and asked if he would honor the $3,000 discount off of the MSRP on the FJ and he agreed. So let's do some math:

Trading in / selling on my own

FJ MSRP $ 30,600 / $30,600
discount -$ 3,000 / -$3,000
trade -$18,000 / -$24,000
DIFFERENCE $ 9,600 / $ 3,600

Savings of $6,000 for MOD's!

I went to only 1 dealer only and did not call any others on the phone nor did I know anyone to get a "brother-n-law deal". I stepped foot on the dealers lot 3 times, 1. test drive, 2. sign papers on deal and 3. the next day to take delivery. The was the easiest car I ever purchased and did not pay retail for it either.

Sorry for the book!