Trade in policies

Discussion in 'After Hours Lounge (Off Topic)' started by Jay H, Oct 28, 2009.

  1. Jay H

    Jay H Producer

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    I am undecided at the moment about trading in a car to a dealership and have a question about policy. It is a '02 toyota MR2 Spyder which is kind of a "rare" car as toyota never imported many of them (and they discontinued that a few years ago). I know I could probably sell it for more on the private marketplace and on some MR2 boards I belong to but I am also trying to consider two options. It's in desperate need of 2 rear wheels as they are absolutely bald and downright scary when wet. I would not, could not, sell it as it is with a sound conscious. What is the policy of trading it in if I was to tell the dealership that it needs 2 new rear tires? I don't recall how thoroughly they check the cars at trade in, I presume they do. What is the usual policy on this. A new set of OK daily driver tires for this car is around $80 it seems. (the tires on the MR2 have different sizes front and rear, so I can't simply swap them or rotate them, which is why the rears wear out quickly, plus they're specc'd to be really soft and grippy, because of the midengine and lightweight layout of the MR2)..

    Jay
     
  2. Scott Merryfield

    Scott Merryfield Executive Producer
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    The dealership will check out the car and give you a price, so I wouldn't worry about it. Usually, they only do trade-ins as an incentive to sell new vehicles anyway, and chances are they will resell the vehicle to another used car distributor if they cannot move it off their lot quickly.

    Only $80 for a pair of tires? That seems extremely inexpensive. If that is the cost, though, why not simply buy the tires and sell the car yourself? The dealership cannot possibly offer you within $80 of what you can sell the car for yourself.
     
  3. Jay H

    Jay H Producer

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    Sorry, hee hee, I meant $80 per tire... I wouldn't go crazy on tires if I was to trade it in... But researching tires, it seems there's this "Fuzion ZRi" in the right size (205/50 15")that seems to have a good mix between traction and tread wear at a reasonable price...

    Jay
     
  4. Scott Merryfield

    Scott Merryfield Executive Producer
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    Even at $160 for a pair of tires, I think it would be worthwhile to replace the tires and sell the car yourself if you want to maximize the price. Dealerships usually really lowball you on a trade-in. If you are looking to just dump the car with the least amount of effort, though, then a trade-in is your best bet.
     
  5. drobbins

    drobbins Screenwriter

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    When trading in a car for another (new or used) car, there are many factors that affect the final price.
    • The value of your trade in.
    • The cost the dealer paid for the car you want to buy.
    • The interest they will charge you.
    • Any extended warranties.
    They can play around with these numbers to make you think you got a good deal. Example they may give you $1,000 more on your trade than you were expecting, but then charge you a 0.5% higher interest rate to cover that amount. I am sure that you have heard the commercials for $2,000 cash back or 0% interest. To them, it is one and the same. This is why when you ask what the price of the car is; their first question is “What do you want your monthly payments to be?” They will work the numbers so they can meet that payment and sell the car. Best advice that I can give you. Do research on the car you want before you buy it. Know what it is worth. On your trade in, know all three values from the Kelly Blue Book.
    1. Private selling value.
    2. Dealer trade in value.
    3. Dealer selling price if they were selling the car.
    Once you find the car you want and they make an offer, never take it. There is plenty of room for you to counter offer. I have dropped thousands off the price of a car by getting up to leave 2 or 3 times. I tell them I want to sleep on it and check out the values on the internet. They know that 90% of customers that leave won’t be back so they will keep trying to make a sale. Put on your poker face and make sure they know that you could take or leave the car regardless of what you really think. If you walk out and they do not chase you, chances are that it is their best deal and you can always change your mind and walk back in. In the big picture of car negotiating, if you spend or not spend $160.00 for tires probably won’t affect the final price any. Especially you are at a new car dealer and your trade in car value is under $5K
     
  6. Jay H

    Jay H Producer

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    Thanks for the updates. I just bought 2 new Yokohama S-drive tires for $170 shipped.. The OEM tires are Yokos but discontinued in terms of size, so at least the new tires will somewhat match the old, at least in brand.

    Jay
     

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