Negotiating with car dealers

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heylinb4nz

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#171295 13-Apr-2015 11:22

Im looking at getting a bigger car and wanted to avoid the Hassle of selling my current one. Am I naive or misguided in thinking that it is strange that car dealer(s) wouldn't accept the following offer ?

Car interested in $12,990 yard price (common car lots of them for sale)

Car I have to sell AT LEAST $12,990 yard price (top spec, low kms, newer, more unique)

+ $1500 cash to sweeten the deal

Perhaps car dealers are not so hard up for $$$, one would think this is a great deal, $1500 cash in pocket today+ easier better car to sell ??

Imagine you could import a heap of bland cars, swap them for better cars that you can sell easier and for more and get $1500 cash for each swap ??? hmmmm perhaps a gap in the market and time to open a specialized car yard catering for those circumstance where people have a nice car and are willing to down trade without the hassle of selling on TradeMe.

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2225 posts

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#1281960 13-Apr-2015 11:30

So they have a car you DO want, you have a car they MIGHT want

My guess is that it will cost you around $3~5k to swap them over

MikeB4

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#1281968 13-Apr-2015 11:41

If your car has a retail value of $12,00 to $13,000 the trade in value would be circa $7,000.

heylinb4nz

656 posts

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#1281973 13-Apr-2015 11:47

KiwiNZ: If your car has a retail value of $12,00 to $13,000 the trade in value would be circa $7,000.

They managed to push it out to $8500.

Trades aside I was wanting to swap a car of equivalent retail value (most likely slightly more) that was higher spec and more appealing (easier sell)..plus $1500 cash their way.

I know its not the usual way it works, but youd think $$$ would be $$$ these days. Surely $1500 is better than $0.

heylinb4nz

656 posts

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#1281975 13-Apr-2015 11:49

Wade: So they have a car you DO want, you have a car they MIGHT want

My guess is that it will cost you around $3~5k to swap them over

There about 3 others, I like the look of in Auckland.

The car I do have is

a) not available out of Japan in my spec
b) none available in NZ with my spec
c) what is available is selling for $12-14k

so $12k retail for mine would be an easy sell. But I dont want the hassle.

johnr

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#1281976 13-Apr-2015 11:50

Look at Trademe what your car is going for and then drop about 3k off it for trade in value

Talkiet

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#1281977 13-Apr-2015 11:50

You'd think, but no. I went through something similar recently. The only sane alternative is to sell your car privately. Car yards apparently need to make 20-30% on trade-ins.

Accept it and move on. It sucks but meh.

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

MikeB4

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#1281981 13-Apr-2015 12:00

heylinb4nz:
KiwiNZ: If your car has a retail value of $12,00 to $13,000 the trade in value would be circa $7,000.

They managed to push it out to $8500.

Trades aside I was wanting to swap a car of equivalent retail value (most likely slightly more) that was higher spec and more appealing (easier sell)..plus $1500 cash their way.

I know its not the usual way it works, but youd think $$$ would be $$$ these days. Surely $1500 is better than $0.

To the dealer they are not equal value stock value. They have to make a profit from both transactions

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heylinb4nz

656 posts

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#1281983 13-Apr-2015 12:02

johnr: Look at Trademe what your car is going for and then drop about 3k off it for trade in value

I wish, the only thing remotely close to mine is selling on yard at $13,000 (so $10,000 trade).

DravidDavid

1907 posts

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#1281987 13-Apr-2015 12:06

What kind of car is it?

There is also the associated risk with taking a high value car in as a swap only to have it's value halved after something's gone wrong. As far as I'm aware (I could definitely be wrong) car dealerships also have to gaurantee their cars too. I'd say the last thing they want is it coming back every 3 months with something else wrong.

A friend of mine was telling me how he landed camper trucks in the country and complied them for around $13,000 to $16,000 a piece and sold them for between $28,000 and $32,000 to the customer. I'd imagine car dealers would want a similar margin out of trade-ins to counter the previously mentioned risk.

That's just my guess though. If I was a car dealer, I probably wouldn't take that deal. In their minds, next week someone else with a a wad of cash from finance direct is about to wander in and buy the same car for top dollar at no risk.

EDIT: Please excuse walls of text. I have no idea why, but formatting for me isn't working for some reason.

heylinb4nz

656 posts

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#1282015 13-Apr-2015 12:23

DravidDavid: What kind of car is it? There is also the associated risk with taking a high value car in as a swap only to have it's value halved after something's gone wrong. As far as I'm aware (I could definitely be wrong) car dealerships also have to gaurantee their cars too. I'd say the last thing they want is it coming back every 3 months with something else wrong. A friend of mine was telling me how he landed camper trucks in the country and complied them for around $13,000 to $16,000 a piece and sold them for between $28,000 and $32,000 to the customer. I'd imagine car dealers would want a similar margin out of trade-ins to counter the previously mentioned risk. That's just my guess though. If I was a car dealer, I probably wouldn't take that deal. In their minds, next week someone else with a a wad of cash from finance direct is about to wander in and buy the same car for top dollar at no risk. EDIT: Please excuse walls of text. I have no idea why, but formatting for me isn't working for some reason.

Wouldnt have an issue with mine, I was the sucker who purchased it privately then spent all the money getting it 100%...about $22k in it ($14k purchase + new engine + extras)

-2007 Mitsubishi Colt Ver R
- Dark Met Blue (rarer colour)
- 90,000 kms on body
- 3000 kms on Engine, clutch flywheel (brand new from Mitsubishi) $6000 worth last year
- 5 Speed Manual
- Recaro Seats (proper EVO spec ones)
- 17" OZ Racing Wheels with new Falken rubber all round
- Project MU Brakes
- RPW Australia ECU Tune
- D1 Voltage stabliser kit
- K&N Filter
- RPW Australia Exhaust System
- Tein S Tech Springs
- Additional front and rear bracing
- Custom carbon wing (factory colour)
- Pro Audio (Pioneer head, Alpine Components, Dual Clarion Amps)

All the engine work was done at Ingham Prestige in Hamilton, and I topped it off with a Dyno AFR check at Te Rapa Auto (EVO specialists). Making safe 121kw at wheels.

Writing all this down makes me wonder why I want to trade it.

lxsw20

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#1282019 13-Apr-2015 12:27

Modded with a replacement engine makes it a bit niche IMO. I wouldn't be surprised if the dealer flat out wasn't interested.

Bee

732 posts

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#1282024 13-Apr-2015 12:31

So the car dealer wanted your car + $4500 cash???

Doing your best is much more important than being the best.

MikeB4

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#1282025 13-Apr-2015 12:32

It has been my experience that you can negotiate a higher trade in price when you are purchasing new, they have greater margin in new as well as factory bonuses.

Wade

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#1282026 13-Apr-2015 12:32

"So its a modified boyracer mobile that has probably been thrashed to within an inch of its life..." <--- this is probably how a dealer would see it i.e. a liability, the dealer takes on CGA requirements when on-selling the car so needs to allow for unforeseen costs associated with selling througha retail channel

Given the facts though, reality is that it is probably not that a desirable car to the car buying majority, the dealer is probably thinking if only it was a nice little automatic NZ new granny model I'd be able to sell it before the end of the week :P

heylinb4nz

656 posts

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#1282028 13-Apr-2015 12:36

lxsw20: Modded with a replacement engine makes it a bit niche IMO. I wouldn't be surprised if the dealer flat out wasn't interested.

Yet quite a few dealers are first to blow their trumpets and ask a premium price when they import a Jap car with HKS, Tommy Kiara, Blitz mods of unknown age and origin. Youd think RPW being local (Australia) and foremost tuners for the Colt that it would be a good thing...along with the fact I have proof of when things were done.

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