to trade your car in a dealership with much cheaper car, will they(dealership) do this?
Or, do you always have to trade your car with higher price car?
Or, do you always have to trade your car with higher price car?
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trading a car
- Thread starter gentle_lover
- Start date
Yes, you can trade a more expensive car for a cheaper one.
If you do, you will have to bend over and hold your ass cheeks open for them to consumate the deal. If you are looking to trade a used car worth $40,000 for a $20,000 car, then expect that they will give you much less for your expensive car than it is worth. Fir example, lets say you ahve a 9 year old BMW worth $15,000 and you want to trade it for a $20,000 Corolla. This deal can still go through without any loss on your part. If you are trying to trade a 5 year old BMW worth $30,000 for the Corolla worth $20,000, do not expect them to give you a break on the new car and then expect to have $10,000 in the glove box of your new car as you drive off. You always take a big hit when you try to trade in a old car that is worth much more than the car you are trying to buy.
PM we with the details if you like, I will let you know what the best strategy is.
If you do, you will have to bend over and hold your ass cheeks open for them to consumate the deal. If you are looking to trade a used car worth $40,000 for a $20,000 car, then expect that they will give you much less for your expensive car than it is worth. Fir example, lets say you ahve a 9 year old BMW worth $15,000 and you want to trade it for a $20,000 Corolla. This deal can still go through without any loss on your part. If you are trying to trade a 5 year old BMW worth $30,000 for the Corolla worth $20,000, do not expect them to give you a break on the new car and then expect to have $10,000 in the glove box of your new car as you drive off. You always take a big hit when you try to trade in a old car that is worth much more than the car you are trying to buy.
PM we with the details if you like, I will let you know what the best strategy is.
don't forget when you trade your car in you get a tax credit on your trade of 13%. We are a dealer and this happen sometimes where we take a more expensive car for a cheaper one.
Are you kidding me, $40,000 privately, $20,000 trade. I have yet to see any margins like that and I work with a group that owns 20 dealerships. This thursday, Our Honda store will be offering all new cars, for $100 over cost to move inventory. 1 day only. if retail on the car is 40k wholesale will be from 32-35k. We have to do recond, and make some money, at the same time the new buyer would like a discount.
xitmnt said:Is it still cheaper too bring a car (truck) over from the states?
I have relatives there and i found an 07 Honda Ridgeline for 15, 000 .
What is the legal ramifications ?
For the record, a ridgeline isn't a truck lol.....
But the only way to know is to price one out. It costs about $250.00 for paperwork to bring it across, and about $100.00 to get it inspected and have daytime running lights installed. Since you're asking about a used vehicle, warranty work shouldn't apply but many (if not most) OEMs won't warranty a vehicle purchased out of country.
As for trading in a vehicle that is more valuable than the one you're buying, in this market, I don't think any dealer would like hand you 10 grand if you're buying a really cheap vehicle. It all depends on how popular the model is, if it is hard to get, and how quickly they can sell it.
You can also bet that the dealer won't move much on the lower priced car. You'll probably end up "paying" full MSRP on it. One way to find out (and this is a good practice no matter what) is to negotiate the price of the vehilce you're buying and then (and only then) start to discuss trade in.
Thanks guys. I thought so as well. It makes sense.
I have another question.
There is a potential buyer who would like to give me half of the money now, and give the rest 2 or 3 months from now.(private to private)
Let say I like the offer, and obviously the car stay with me until he pays off the rest. Is this practice common between private buyers and sellers?
What kind of things that I need to look out for in this kind of deal?
I plan to make a notarized draft/contract which specified the deal. Can I put clauses on the contract that will prohibit buyer to resign from the deal or he will lose his down payment?
Is there any contract sample out there for this type of deal in private sales?
I have another question.
There is a potential buyer who would like to give me half of the money now, and give the rest 2 or 3 months from now.(private to private)
Let say I like the offer, and obviously the car stay with me until he pays off the rest. Is this practice common between private buyers and sellers?
What kind of things that I need to look out for in this kind of deal?
I plan to make a notarized draft/contract which specified the deal. Can I put clauses on the contract that will prohibit buyer to resign from the deal or he will lose his down payment?
Is there any contract sample out there for this type of deal in private sales?
gentle_lover said:Thanks guys. I thought so as well. It makes sense.
I have another question.
There is a potential buyer who would like to give me half of the money now, and give the rest 2 or 3 months from now.(private to private)
Let say I like the offer, and obviously the car stay with me until he pays off the rest. Is this practice common between private buyers and sellers?
What kind of things that I need to look out for in this kind of deal?
I plan to make a notarized draft/contract which specified the deal. Can I put clauses on the contract that will prohibit buyer to resign from the deal or he will lose his down payment?
Is there any contract sample out there for this type of deal in private sales?
Well, as long as both parties agree and sign the contract and there is nothing in there illegal, you can put anything on paper.
Though for a buyer to sign that sort of a contract? Um, not likely. For eg: what's to stop the buyer from buying the same car at a dealer, getting a loan, and then paying it off in a month? There is no real upside to him buying from you unless you've greatly reduced the price on your vehicle to make it unimaginably irresistable.
One thing (as a buyer) if I was entering into that sort of a contract, you could keep the car as collateral but I'd get the keys and have an ignition interlock installed to keep it in the same condition as it was at the time the deal was struck.
tboy said:Well, as long as both parties agree and sign the contract and there is nothing in there illegal, you can put anything on paper.
Though for a buyer to sign that sort of a contract? Um, not likely. For eg: what's to stop the buyer from buying the same car at a dealer, getting a loan, and then paying it off in a month? There is no real upside to him buying from you unless you've greatly reduced the price on your vehicle to make it unimaginably irresistable.
One thing (as a buyer) if I was entering into that sort of a contract, you could keep the car as collateral but I'd get the keys and have an ignition interlock installed to keep it in the same condition as it was at the time the deal was struck.
The upside is he won't be paying GST,PST, admin fees, and that will save him a big chunck of money. Other than that, if he was to take out a loan, he will be paying interest on it. So, that is a quite upside for him.
I'm not sure giving the keys and have an ignition-interlock on the car will be a good idea in term of in case of emergency. What if in emergency situation the car has to be moved to another spot (in case of fire, etc).
Beside, people dont get keys from the dealer unless it has been paid in full.
Sorry dude, he WILL be paying PST and GST on the vehicle when he goes to licence it. This is based on the kelly blue book value, not what you sold it for. (the whichever is greater clause is a killer).
If he doesn't get the keys to the vehicle what's to stop you from continuing to use it after the deal is struck? (thereby reducing it's value).
As for moving it in case of emergency, well, if there's a fire in the garage where it is stored, then hopefully it is insured. Frankly, I would never in a million years enter into a semi-purchase agreement like you're proposing. As for interest on a loan, he'll pay one month interest and if the rate is 10%, that's less than 1%. There are no admin fees when taking out a loan, other than interest. Most car loans are 100% open and there are no penalties to paying it off early.
Speaking of insurance, who is going to insure it until the deal is finalized (he takes posession of the vehicle)? You? Him?
If it was a vehicle on a dealer's lot, the dealer would be responsible to protect the vehicle from damage, are you going to be responsible for that?
Don't forget, you're going to need to supply a UVIP (costs $20.00) before you can sell the car.
If he doesn't get the keys to the vehicle what's to stop you from continuing to use it after the deal is struck? (thereby reducing it's value).
As for moving it in case of emergency, well, if there's a fire in the garage where it is stored, then hopefully it is insured. Frankly, I would never in a million years enter into a semi-purchase agreement like you're proposing. As for interest on a loan, he'll pay one month interest and if the rate is 10%, that's less than 1%. There are no admin fees when taking out a loan, other than interest. Most car loans are 100% open and there are no penalties to paying it off early.
Speaking of insurance, who is going to insure it until the deal is finalized (he takes posession of the vehicle)? You? Him?
If it was a vehicle on a dealer's lot, the dealer would be responsible to protect the vehicle from damage, are you going to be responsible for that?
Don't forget, you're going to need to supply a UVIP (costs $20.00) before you can sell the car.
No dude. He ONLY pays RST which is 8% compares to 13% GST and PST. That is a 5% difference.
I can put the odometer on the contract on the time of signing. Its that simple.
As of the admin fees, well it depends on his credit. If he has a bad credit, he will have to go for dealer in-house financing who will charge admin fees(can be as much as $500).
In term of interest, well, 1% of how much and for how long. A month or 2, that is still extra money that he can avoid by doing it privately.
I will change the insurance policy for comprehensive only. It will insure the car against fire, theft, damages. I will pay for it of course. Its about $20-$30 a month.
I can put the odometer on the contract on the time of signing. Its that simple.
As of the admin fees, well it depends on his credit. If he has a bad credit, he will have to go for dealer in-house financing who will charge admin fees(can be as much as $500).
In term of interest, well, 1% of how much and for how long. A month or 2, that is still extra money that he can avoid by doing it privately.
I will change the insurance policy for comprehensive only. It will insure the car against fire, theft, damages. I will pay for it of course. Its about $20-$30 a month.
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