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Discussion Starter #1
I am looking to buy a new (or new to me) truck. Currently I owe about $4000 less than my car is worth (according to KBB). I did reach out to a dealership the other day and he laid out a scenerio that I wanted to bounce off of you folks to see if it made sense (or it was correct).

EXAMPLE (This is hypothetical):
New Truck: $30,000
My Car: KBB Trade In Value $13,000
Amount Owed to Bank: $9,000
Dealer Rebates: $5,000

Dealer laid out this scenerio:
Buy the truck for $30k, minus the $5,000 rebate, minus the $13,000 trade in, plus what I owe.

$30,000-$5,000-$13,000+$9,000=$21,000

So I would only pay $21,000 for the new truck.

Does that sound right?

They say don't trade a vehicle in unless you own or better yet sell it our right. I can't do the car anymore. I bought it for gas mileage but with my new job that isn't an issue.

Thoughts?
 

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The question is, what is the KBB private party sale value of your car and are you willing to go through the hassle of selling it yourself? Generally, you'll save some bucks by doing so. I'll give you an example, we had a 2004 Toyota Sienna AWD minivan. The dealer was offering us about $5000 on a trade. We listed it for $7500 and offered to have it newly inspected and put new brakes and rotors on it for a buyer at a cost of about $700. Figure about $100 for advertising and we ended up netting about $6700. Was it a pain? Yes. But we saved about $1700 bucks, minus whatever the sales tax would have been on the trade in value.
 

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Discussion Starter #3
I have no problem selling it out right. I don't mind the hassle at all problem is I owe money on it still so the title is with Citizens bank.

Private party value was about $4,000 more then trade in value.
 

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remember when u trade u don't pay taxes on the amount they give you for the trade. so that's 13000 u wont pay taxes on
 

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That is correct. Don't tell the dealer what you oee on your current vehicle cause they will only want to give you that. Tell them only after you have the price of the new vehicle.
 

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Discussion Starter #7
It sounds as though the example I gave above is accurate I just need to not reveal too many details.
 

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Personally, I'd do everything I could to screw the dealer!

Let them show you $45k trucks all day long. They'll offer you more on a trade....make them put it in writing. Then start shopping for the price point you want....then work them down from there. Make sure they hold their end up(trade-in AND rebates). You may have to walk out several times....you might even have to leave completely, but they WILL call you.

Sorry, but car salesmen are looking out for themselves....not you. They'll take you to the cleaners if you aren't sure of what you're doing. Do your homework, know what your vehicle is worth(honestly) and know what you're buying is worth(not what they're asking). At the end of the day they won't make a deal if they aren't making money. You just have to be happy paying them what they're happy with.

I hate buying vehicles....but I'm good at it! Check out Edmunds and learn away!
 

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JasonN said:
Personally, I'd do everything I could to screw the dealer!

Let them show you $45k trucks all day long. They'll offer you more on a trade....make them put it in writing. Then start shopping for the price point you want....then work them down from there. Make sure they hold their end up(trade-in AND rebates). You may have to walk out several times....you might even have to leave completely, but they WILL call you.

Sorry, but car salesmen are looking out for themselves....not you. They'll take you to the cleaners if you aren't sure of what you're doing. Do your homework, know what your vehicle is worth(honestly) and know what you're buying is worth(not what they're asking). At the end of the day they won't make a deal if they aren't making money. You just have to be happy paying them what they're happy with.

I hate buying vehicles....but I'm good at it! Check out Edmunds and learn away!
I agree!! Also, be leary when they ask you "How much do you have to spend"? "How much of a payment can you afford"? "Do you have a trade in"? They use this as ammo against you to get the most out of you. They also want to push loans on you. Be leery and make them sweat.
 

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Can you get the 5000 cash rebate sent to you? It is the practice (depending on manufacture) to offer a larger dealer hold back if the customer applies the rebate to the purchase. You should be able to negotiate a better sticker price from the dealer if you want the cash back. The dealer can offer you more off the sticker to make sure the rebate says with the purchase.
 

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It's off topic a little bit, but if you buy a new one, make them go over the extended warranty BS right away. I bought my first new vehicle this year. And they did not bring up the extended warranty until I was just about ready to sign the paper work. I almost walk out on them right there. I found out later that this a common practice.
 

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THINBLUELINE said:
It's off topic a little bit, but if you buy a new one, make them go over the extended warranty BS right away. I bought my first new vehicle this year. And they did not bring up the extended warranty until I was just about ready to sign the paper work. I almost walk out on them right there. I found out later that this a common practice.
Did you buy the extended warranty?
 

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Also, do your value research on NADA guides, most car dealers don't use KBB, But they want you to. KBB is geared toward the consumer, not the dealer.
 

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Lay your checkbook on the dealer's desk, tap on it and announce that you are going to buy a new truck today and it' up to them whether you buy it there or somewhere else.
 

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Joe the Logger said:
Also, do your value research on NADA guides, most car dealers don't use KBB, But they want you to. KBB is geared toward the consumer, not the dealer.
Yes, for sure! I like to check them all...KBB, NADA, Edmunds True Market Value. Compare, get an idea, see what you can live with on a trade value. Have a minimum and stick to it....and don't start with it.
 

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I bought an extended warranty, but not the full extended warranty that they initially tried to sell me. It would of have taken my payments above my limit.
 

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When I bought my 03 Silverado, I bought the extended warranty from the dealer, but it was through a third party. It was 100% money back if it wasn't used. Exactly 5 years and 2 months later, I got a check for the full amount of the purchase price of the warranty. Well worth it for me, it was no brainer. If you had to use it, you were covered, but in my case, I never had to use it, so I go my money back. I thought it was pretty great deal.
 

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dmccoy1 said:
When I bought my 03 Silverado, I bought the extended warranty from the dealer, but it was through a third party. It was 100% money back if it wasn't used. Exactly 5 years and 2 months later, I got a check for the full amount of the purchase price of the warranty. Well worth it for me, it was no brainer. If you had to use it, you were covered, but in my case, I never had to use it, so I go my money back. I thought it was pretty great deal.
What's in it for them?
 
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