Quote:
Originally Posted by onewhippedpuppy
Quote:
Originally Posted by Laneco
If at all humanly possible, sell your trade yourself. Bringing cash to the deal, no trade-in, generally will get you the lowest REAL price on the newer vehicle. When a trade is involved, the idea for the dealer, as you've already surmised, is to buy the trade cheap and sell the other car high.
Bringing no trade to the deal eliminates that bargaining chip for them. If you must do a trade, as advised above, concentrate on just the difference between the two vehicles.
angela
This. You'll always lose money when you trade in your car, that's the nature of the beast.
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Careful, 'always' and 'never' makes for dangerous advice. Many states calculate sales tax on the trade difference. In those states, if he buys the BMW for $29K and gets $20K for his GX, he will pay sales tax on the $9K difference. Ohio is weird, as they differentiate between new and used vehicles (most states don't). So if he bought a NEW vehicle, he would get sales tax credit on his trade. But buying a used vehicle, he won't get any credit.
IF he bought a NEW car of some kind, the $18K he might get for the GX on trade would really be worth $18K x 1.0775 (Cleveland = Cuyahoga county 7.75% sales tax) meaning he'd effectively have to sell his trade on his own for more than $19,335 to break even.
In the case of the used 750i, you'd *think* he'd be better off selling the GX on his own. But how many people have $20K cash laying around, or have access to finance $20K on a 7 year old, 74K mile SUV? Most banks will want to offer a 36-42 month term, making payments as expensive as leasing a new one. It's different story when selling a $5000 Camry on Craigslist. Some people don't like the hassle of having strangers come out to their home, or meeting alone in a parking lot. Is their cash real? Is their cashier's check real? How will I know if they go register the vehicle, or will they leave it in my name and go rack up tickets? Etc, etc. There is a value in avoiding the headache..... but it's not thousands.
It's worth trying to sell the GX for $19950 for a week (eBay and Craigslist), unless you were worried about 'losing' the 750i.