The Trade-In Thread...

I generally trade in to avoid the hassle of selling privately (doing test drives, dealing with the potential for the buyer to get angry if the car breaks down right after they buy it, etc.).

On the other hand, I generally keep cars around until they're pretty old and not worth much. If I had a car worth $5000 or more, I'd probably go to the effort of selling it privately.

 

I tend to trade because the lemon law in my State, Massachusetts, protects the buyer a little TOO much. Bascially, if someone buys my Prius, drives it to hell within 7 days, and let's say, blows the ICE, guess who gets stuck with the bill or has to fight it out on court?

h34r:

 

My first car was a 1967 Mercedes diesel. The engine block cracked and it was sold for scrap. I got rid of my second in a private sale (it was also a 1967 Mercedes and was shipped to Germany). My last car was donated to an animal charity.

I tend to drive my cars into the ground so there's little trade in value.

 

12 year old F-150, 150K miles, with it's small value, it was worth more to keep for when I need a truck. It now gets driven less than 100 miles/month.

 

I voted 'other' because I'm not sure yet. When I'm at the dealer and the topic comes up, I'll see what I can get for a trade-in. I'm thinking not much, like somewhere in the neighborhood of $500-1000 TOPS. KBB gives a trade-in value of ~$1400, but I don't think it's even worth that. If it's anything less than my estimated range, I'll say no to the trade-in and go ahead and give the car to a family friend whose Jeep keeps breaking down on her.

Last big breakdown with my car was fall '04 when there was a major major coolant leak (crack in the plastic 'tank'), which was mucho $$ to get fixed. So at least it'd be more reliable than my friend's Jeep. My current car is 9 years old and has almost 180K though. Has some cosmetic defects due to minor accidents (front end) and has some peeling clearcoat on the spoiler. Otherwise runs decently. Tired of constantly burning oil, it's too small for me (Saturn coupe), I drive a lot (in the real estate business) and need the better mpgs, and I want a much safer car and one that's reliable to boot.

 

I alsways seem to fall into the "I know someone looking for a car thing". I never advertise...and I usually have driven it to death. The avg. cost of the last 3 cars I sold was $800.

I wonder how many miles and years I must have on the Prius until it is worth only $800. I should live that long :lol:

 

Oh, you're one of THOSE people... lol I know someone like you on the other side, so connected that instead of selling cars, this person seems to just inherit them from "someone they know that is selling cheap"... :lol:

 

I always lease my wife's vehicle so I just turn it in and never trade. I don't have a personal vehicle, just demo's. Unless you have a really strange or high mileage vehicle I would always try to sell it on my own first, it will usually save you 2-4 thousand.

 

I selected the "none of the above choices fit me."

I am now on my third car. My first was a parental leftover and I drove it almost literally into the ground. Second was a grandparent leftover and sadly it had a fire and was totaled. So I've never really had a sell/trade option - both cars were un-sellable.

My husband's current car - the one we're going to replace with the Prius - we will most likely donate to an organization around here (Vehicles for Change) that repairs used-but-driveable cars and sells them at a discount to needy families. It's still driveable, but we wouldn't get much in a sale or a trade and we think this organization does good work.

If we were to trade in a car, there would be 2 motivations for us:
1. not having to deal with selling it privately - we're lazy that way
2. if the car is basically dead, whatever we get for the trade is bonus - mostly we'd just want it taken off our hands

Michelle

 

Almost always #2, sell privately. The handful traded developed some type of expensive problem that made them more valuable and less of a liability as a trading piece. Sometimes I'll even buy a beater for dirt with the intent to use it as an overvalued (by the dealer) bargaining chip.

At last count, I've owned 165 cars and trucks from 23 manufacturers. About 25% were purchased new, the rest were considered special interest vehicles.

After years (I'm probably older than you) of doing this, it's as much art as science. I'd say 90% of the time, the first one to show up and drive the car for sale buys it. I make money on 80% of them (100% of Prii), break even on 10% and lose a bit on 10% including opportunity cost (house rule is cash for toys) in a no sales tax state. Not bad for what's become a profitable hobby.

My state used to allow unlimited private transactions. A few years ago the rules changed to a limit of six private transactions per year before getting a dealer's license, so I'm slowing down!

 

I'm amazed at the number of cars some of you have gone through!

I always sell privately. The only situations I've ever seen (myself or others included) where trading in makes sense is if it's a real old beater worth less than $1,500. Sometimes in these cases the dealer will give you a good value for the trade-in.

I also don't like trading in because it adds another variable in the negotiating equation with the dealer. For example, sure you might get a good value for your trade-in but then the dealer will probably try to make up for it on the financing or the purchase price of the car you're buying.

Also, keep in mind in some states trade-ins do not reduce sales tax on the car you're buying. For example, California, the District of Columbia, Hawaii, Maryland, and Michigan allow no deductions for trade-ins when calculating sales tax.

 

I've always sold my vehicles privately. The benefit vs quoted trade-in has been from $1,500-$2,000 per vehicle. Well worth the extra hassle.

 

I have to say that I typically trade rather than sell privately. My rationale for doing so is precisely the same as what Tony outlined in his post (above).

About 15 years ago, I did sell one car privately and it was pretty much of a nightmare; tons of phone calls with a few at pretty weird hours, waiting for a couple of potential buyers who never showed up, and, ultimately, selling the car to a couple of rather unsavory looking characters who test drove the car for around an hour, said they'd take it, and then proceeded to pay in cash (and I mean circa $6k in cash).

One issue I have with selling privately involves security. I mean, how do you really know who's going to show up at your door?

 

I always lease, takes the hassle out of the whole thing and it's a good excuse to get a new car every 2 years... usually only makes sense if it's a tax write off though.

 

6. above choices don't fit me; let me explain...

I've always had used cars (or a company car). My Prius is my first new car.

My last one, which I still have, is a '93 Ford Probe GT. I ran trade-in values on-line (Edmunds & KBB), and got $350-$750 that a dealer might offer. But both sites showed the car worth $2,000-$3,000 in private sales.

I'm in no real hurry to sell it. I'm basically just telling people about it. I'm asking $2,000 because it's in "decent" condition, tho it runs great and has a 6-month-old sound system w/ sat radio. My only requirement is that I want payment in full.



Hmmm..... anyone here interested?

 

When I bought my '89 Honda Civic (new, at the end of '88) I was going to trade in my old Jeep, but the dealer told me how much he's give me for it, and how much he'd sell it for. Armed with its real value, I put an ad in the paper and sold it to the first or second person to inquire, hassle-free.

When I bought my Prius, I talked it up a lot with friends, and a woman in my church said, "I hear you're selling your Civic, how much do you want for it?" I never had to put an ad in the paper. She paid my asking price (researched on-line). I had never had a minute's trouble with it, ever, in 15 years!!!!! The very next morning she phoned and said it would not start. She had nothing but trouble with it. I paid half the first round of repairs, not because of any obligation (both the sale agreement and state law said that used cars are sold as-is) but because she was a friend.

I will never again sell a car to a friend. Period. And I will probably just trade in, regardless of the loss.

 

I have done both. However, I usually know the value of the vehicle I'm getting rid of so when I find the vehicle I want, I find out the cash (no trade) price. When the numbers come out to a fair price for my trade against the cash price, I write the check and don't look back. I used to have to dicker and negotiate, but now, they get one chance for my business and know I won't try for a lower number. If it isn't right, I move on. It's a lot less stressful that way and sometimes when I walk away, I get out of the trading mood and I've saved some money till the next time.

Doug