Tricks & Tips of the Trade(-in) so You Don't Get Burnt

[dilbert_rocks]

Buying / trading a car can be pretty stressful, especially for those who don't do it very often. I'm sure there are plenty of tricks that the motor industry plays on the inexperienced - I know I had a few played on me - but fortunately I didn't end up getting burned.

What tricks / tips / stories do you know of?

[dilbert_rocks]

If a trade-in is not part of the deal before signing, it never will be...

I knew that dealers will sometimes offer a "good" price on the trade-in, but recoup that generosity in the sale price for the new car. Hence why people just focus on the changeover price. So when I ordered my VW, I didn't include a trade-in, and besides, who knows what can happen in the 4+ months delivery time?

So I got a great deal for the new car (without a trade). The dealer told me that they would call a couple of weeks before the new car was ready to be picked up, and I could come in then and they would offer me a price for a trade-in.

As it happened, the new car arrived two weeks early so this didn't happen. When I went to collect the car, they told me that because the trade-in wasn't part of the deal, I would have to sell it privately to the wholesaler at the back of their lot (the same one they would have sold it to).

Needless to say, I got offered a ridiculously low trade-in by the wholesaler, and the VW dealer said "Well, if you can't get better than that in a few weeks, I'm sure his offer will stand!".

I had the feeling this was a common scenario. But I figured that since I got a good deal on the new car, I hadn't lost anything there - besides a bit of good will towards the dealer.

[mikinoz]

When negotiating a trade in, make sure you know what the car is currently worth on the private market. Once you have ascertained that vaule, determine if your car is in better or worse than average in terms of KM and condition.

Tell the dealer what you would expect to get for it if selling privately so they know that you are aware of the cars value.

In my previous trade, I got almost private sale price on the trade and no real discount on the car itself. I can live with that. If I was offered $7K below market price on a trade and I had no price break on the car, I would say no.

Don't be afraid to compare trades as well. I know that person A went to dealer A and got a low trade, but wanted car from dealer A. Disappointed, person A went to dealer B and looked at his second choice options, got some figures and was offered $5K more on that deal (similar price and spec cars). Said person took the quote from dealer B to dealer A and said that he was in the market and if he would match the dealer B trade would sign on the spot. And they did!

It is a battleground out there!

[vinderliker]

From experience and knowing someone as a friend in the trade albeit 10 years ago the dealer worked on a $3000 margin, as well as what the second hand has cost them to make it roadworthy or saleable. Obviously, when a dealer in new cars has factory backed sales or special offers the savings will be increased, but this may be offset with a lesser amount on the trade in. At the beginning of the year Audi had a sale which gave you free on road etc, which save anything up to around 6 grand on some models.

[REDMKVGTI]

Know what you want to get for it (but be realistic), go in, tell them that and see how it goes. Remember not to get sucked in by that new car smell, it's far better to walk away.

[99gti]

My tip that I used was
1. First inspection (decision was basicly made then)
2. Next day second inspection, take it for a drive. Get real excited with the dealer and work them up. Make sure you leave your number "just in case"
3. Inspect again and make sure they see you but walk away before they get a chance to aproach.
4. DRIVE AWAY!!!

Your guaranteed they will call you if they saw you snooping round the car. Make them an offer and tell them you'll come back and sign the papers now!

I had no trade it but that worked a treat for me!