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Why not use trade

Hello all, been doing a bit of research and have just started negotiations for an 2008 Tundra 5.7L 4x4, Package "B". (Unit on the lot) With all the study that I have done in the last week I think I placed a decent opening offer. ~30K.all in I am in Canada but have used some of the $$ from US source as a guidline, since the exchange is not that far appart! Am i wrong in assuming some level of parity in dealer costs between US and Canadian dealers..leaving delivery cost aside for the moment. Other than the obvious low ball trade-in value they say my trade in is worth which most of us see thru ..what other reasoning is there for not using a trade as part of the barganing process.

Dealer/Sales manager is telling me the profit margin on this vehicle is ~ $2,800.00 at a MSRP of $38,320.00( BS I think) and they appraised an 2001 F150 XLT (4x2 with 240KM) at $2,600.00 trade in.....these tactic are almost expected..though still taint the salespeople as scumbags for the blatant attempt.

I keep reading how these guy are suppose to be hungry...I have not gotten a counter offer yet...how long do I wait before I need to "Blink" I do want the Tundra but the local dealerships in this area are owned/managed by the same corporate outfit.....I won't come out and scream price fixing...but if it walks like a duck.......

Pogo

Reply to
Pogo
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Reply to
Amiga

I did scroll back and read the post, The Canadian comparison, and use of trade in did not come up. The tactic and suggestions were read carefully, looking for more insight to price justification/comparison between both markets. I suspect these Tundras are all out of the same manufacturing plant, and therefore manufacturing cost should not be the variance in price that I am seing here in Canada, Auto Pack/Nafta duties are all but gone and the dollars are close in value.... so why am I seing 40% more on the sticker for this vehicle here!

Marc

Reply to
Pogo

If it's at all possible, NEVER trade in. Sell the old one outright and go buy the new one. This is invariably going to save you a couple thousand that you can put toward the new one. Even if you have to rent a car for a couple weeks in the interim, you sill save a bundle. If you must trade, don't even mention that to the dealer till you have negotiated the new car price, and assume you will get less than wholesale $ for the old one. Once the dealer knows you're trading, you are screwed.

Reply to
DanG

Right on... But remember, there's really nothing evil about the fact that dealers need to buy at wholesale and sell at retail. Dealerships are businesses, but we don't have to accept a wholesale price.

Accept it, sell your car yourself, and save money.

Another take: I deal with a credit union. I buy my new car, they finance 100%. I then sell the old one, and the CU rewrites the loan for the difference after I pay down the loan with the proceeds from the sale. . I probably pay $20-30 in additional interest, due to the higher 100% finance interest rate for a month or two, and it's all very stress-free.

Reply to
Valued Corporate #120,345 Empl

Another view - I trade more than sell my used because it takes time to sell a used car, paper work needs done, always have to worry about scammers driving your used car for a test (even with you in it), etc... All that costs money in real terms - as my time is money to me.

Normally I get Blue Book or higher when I trade, and I always tell them I'm keeping my used car until we get the final price on the new one....

So, as long as they give you a good price on the used one it's not a bad way to go if you value your time.

Reply to
Leythos

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