Trade at a dealer, get cash back?

[onewhippedpuppy]

Am I crazy, or do they normally play ball with this? My wife's Cadillac SRX has had ZERO interest ($4+ gas, big shock) for a private party sale, so I'm considering eating the value and trading it in. The only catch, I'd like to get something cheaper and pocket some cash to pay off student loans. SRX trade is about $17k, I'd like to purchase a minivan for $10k-ish. So basically, I'd like to trade for a minivan + $6-7k.

So, does this ever happen, or do dealers balk at writing a check?

[911boost]

I got cash back, a physical check once, when trading in a lease. Of course, I was buying another car from them that was more expensive than the trade in, so that is probably why they did it.

[Jim Richards]

See how much CARMAX will pay you for your Caddie. Maybe, they'll even have the mommy-van you want.

http://www2.carmax.com/enUS/locations/Kansas-Used-Wichita-7267.html

[Zeke]

As long as they make money, they will do it. I'd sure look at the bottom line carefully as they have the upper hand and can really screw you on a deal like this. Typically a dealer wants out of a used car wholesale what they have in it. If they keep in or buy in some low mileage cars at wholesale, they want about a 4K margin in the car. Salespeople make a lot more on used than new.

[onewhippedpuppy]

Jim, I went in there a month ago and was offered $16k. I've test driven a few vehicles there, and found each one to be dirty and overpriced. Considering how much they brag about their reconditioning and inspections, I was not impressed.

I just need a reality check on the trade-in thing. If most dealers won't do it, I'll just find a straight-across trade.

[NICKG]

go check a yaris out...

[onewhippedpuppy]

Originally Posted by NICKG

go check a yaris out...

Yaris minivan?

[the]

What year is the SRX and how many miles on it? I'll look up some numbers for you.

[onewhippedpuppy]

2004 SRX V8 AWD with 56k, Bose audio, power 3rd row seat, all the other goodies that are standard. Excellent overall condition.

[JavaBrewer]

If gas prices continue to climb, as forecast, then the longer you hold the SRX the more $$ you will end up losing. Work out the absolute bottom line of what you will accept for your SRX and see what the dealer can do. Negotiate the deals separately. I second the CARMAX suggestion.

[the]

I'm surprised they would offer as high as $17K for that.

The current auction price, and this is based on actual nationwide wholesale auction sales for May 2008, for the car you describe is $16,777 for around 26,000 miles, $13,848 for around 51,000 mile vehicles, and $10,918 for around 75,000 mile vehicles. These are the prices that dealerships are actually paying at the wholesale auctions to get these for their lots.

Of course, at the wholesale auctions, condition as well as mileage comes into play.

A dealership would mark up around 20% from the wholesale price, and hope to get 10-15%.

In May of 2007, the average wholesale sale was almost $21K on that car.

The estimated retail for it is currently $17,250, 15K and $13K for above/ave/below miles and condition.

[onewhippedpuppy]

the, if that's the case, there's a lot of overpriced dealers around here. We have similar vehicles priced at up to $24k retail. Not saying they'll sell at that price. Thanks for the info, the $16k isn't looking so bad. Sadly, they'll probably offer less now that the gas prices have increased further. When you say the average wholesale price was almost $21k, what does that mean?

David, that's exactly my thought. I need to dump the damn thing NOW, because things aren't going to get any better.

[Rot 911]

I traded my 2006 gas hog Jeep Grand Cherokee in on a low mileage 2002 BMW 325i at a Jeep dealer last February and got a check for the cash difference. They do it all the time.

[Porsche-O-Phile]

Vehicles like that aren't going to fetch much.

I'm hearing stories about large SUVs and pickups being given as little as 65 cents on the dollar (KBB value) because the dealers can't move 'em.

[VincentVega]

You can sell to Carmax without buying, right? I went down that road with my Mini.

pickups being given as little as 65 cents on the dollar

I'm shopping for a pickup, bring it on!

[the]

Originally Posted by onewhippedpuppy

the, if that's the case, there's a lot of overpriced dealers around here. We have similar vehicles priced at up to $24k retail. Not saying they'll sell at that price. Thanks for the info, the $16k isn't looking so bad. Sadly, they'll probably offer less now that the gas prices have increased further. When you say the average wholesale price was almost $21k, what does that mean?

David, that's exactly my thought. I need to dump the damn thing NOW, because things aren't going to get any better.

Based on the actual wholesale numbers, a dealership asking $24K is pricing that thing pretty aggressively, trying to make a killing.

When I say last May the average wholesale was $21K, that means in May 2007, that was the average price paid, through the nation, at the largest national wholesale auctions.

I looked again at the current numbers. In the past two weeks, 23 2004 V8 AWD SRXs have gone through the wholesale auctions. The AVERAGE miles was 51K, the AVERAGE price paid was around $13.5K. The absolute highest price paid was $17.5 for one with 32K, the next highest was $16.5K for one with 23K miles. The lowest was $9,000 for one with 58,000 miles, in below ave. condition.

Again, these are ACTUAL current sales numbers, they are what dealerships are paying at wholesale auction to buy these and put them on their lots.

Your local market may be a little higher. These are large nationwide auctions, usually in larger markets like Dallas, So Cal, Atlanta, Florida, St. Louis, etc. To get a car to a lot where you are, the dealership would have to add shipping costs, etc.

[onewhippedpuppy]

Thanks for the info! Could you tell me average wholesale on a 2002 Odyssey, 2005 Odyssey, 2004 Mazda MPV, and 2004 Sienna?

[VaSteve]

Originally Posted by onewhippedpuppy

Jim, I went in there a month ago and was offered $16k. I've test driven a few vehicles there, and found each one to be dirty and overpriced. Considering how much they brag about their reconditioning and inspections, I was not impressed.

They claim that they clean them further once you buy it. I feel the same way, they are really dirty on the lot...but I guess if you have potentially hundreds of people in them, you have the opportunity for them to be dirty...so why clean them?

[onewhippedpuppy]

I guess, but a few test drivers aren't responsible for stains, broken/loose trim, pop residue in the cupholders, etc. Maybe they clean up the more expensive cars better, I don't know. Sadly, most of the used vehicles we have looked at are filthy. Funny, because the higher retail price is supposed to account for extensive "reconditioning". Riiiiiight.

[rick-l]

The what am I missing here? How come the used car dealer makes more money on the cheapest car?

Wholesale Retail Return
$16,777 $17,250 2.82%
$13,848 $15,000 8.32%
$10,918 $13,000 19.07%