Dealer trade in offer, about what I thought

[Londonguy]

I was lookin in to upgrading to a Camry LE. My corolla Ce with enhanced package cost me 21400 CAD. out the door. I've had it almost 3 months with 3200KM. The dealer offered me 14200. Thats a loss of 7200 over 3 months. Pretty expensive lease wouldn't you say? Needless to say I think I will keep it. I know they would sell for at least 3 grand more. Unbelievable.

[hendrix8989]

yepper...sell it on craigs list

[joeylgarcia]

advertise your car on free newspapers and internet sites.

[SnakeEyes]

and remember trade-in isn't retail. it'll be around at least 30% less.

[Zembonez]

Your out the door price included taxes and fees. Unfortunately those are gone for good. Here in the states, you can write that off but not sure about Canada.

[rolla-XRS]

No dealer will accept a car unless they make $3G profit. They typically make more on used than new anyways.

[Zembonez]

Originally Posted by rolla-XRS

No dealer will accept a car unless they make $3G profit. They typically make more on used than new anyways.

NOTHING could be further from the truth.

I've been in the dealer / car buying business for 20 plus years and I buy 200 cars a month. A dealer making huge money on a single used car sale is very is unusual. Of course there are those that they make a lot on but the vast majority are sold at a profit of $800 - $1200.

There will always be those "Urban Legend" claims that the dealer is making bazillions off of selling cars but most dealers actually far more money off of parts, accessories, body shops, and financing than they do selling the cars.

It is true that dealers are not going to buy a vehicle (which is what they are doing when they take your trade) that they don't expect to make money on. Why should they? They are in business to make money.

[Georgenfla]

Yeah man, trade-ins will really get you! If you cant afford to play that game, its best to let the people with money just play.

[Inhaled Straw]

Mind if I ask what makes you want to sell so soon? Besides trade-in loss, you're likely to see a significant MPG drop in the Camry vs. your Corolla. Double whammy.

[bond220]

Originally Posted by Zembonez

NOTHING could be further from the truth. It is true that dealers are not going to buy a vehicle (which is what they are doing when they take your trade) that they don't expect to make money on. Why should they? They are in business to make money.

Interesting discussion. When I traded my 2001 Corolla in on a new one the Canadian Red Book value for ir was $5000 retail and $4000 wholesale. However the dealer told me that he would have to spend at least $750 cleaning it up for sale so he offered me only $3250 - $750 off the wholesale price. Is that a valid way to look at tradein value, or did I get screwed?

[Zembonez]

Originally Posted by bond220

Interesting discussion. When I traded my 2001 Corolla in on a new one the Canadian Red Book value for ir was $5000 retail and $4000 wholesale. However the dealer told me that he would have to spend at least $750 cleaning it up for sale so he offered me only $3250 - $750 off the wholesale price. Is that a valid way to look at tradein value, or did I get screwed?

I buy wholesale cars all day long. I always deduct for any reconditioning that will have to be done but a vehicle would have to be unbelievablely dirty to warrant a $750 deduction. That seems pretty extreme. $250 will cover one hell of a nice detail job around here.

EDIT: Perhaps the dealer meant including buying new parts, tires, etc. would run $750? "Cleaning it up for sale" could include a lot more than just cleaning.

[hendrix8989]

I had a car once that had only few thousand miles, current year model..and it was so detailed it looked better than a car in the showroom...and they still took of 250 dollars for detail

[Zembonez]

WHat a rip. Some of us are actually fair.

[bond220]

Originally Posted by Zembonez

I buy wholesale cars all day long. I always deduct for any reconditioning that will have to be done but a vehicle would have to be unbelievablely dirty to warrant a $750 deduction. That seems pretty extreme. $250 will cover one hell of a nice detail job around here.

EDIT: Perhaps the dealer meant including buying new parts, tires, etc. would run $750? "Cleaning it up for sale" could include a lot more than just cleaning.

That's interesting. Then a fair price would be the book wholesale value minus any cleanup cost? In this case the car was not pristine but was in pretty good shape with no dings or dents or upholstery problems. It was on its second set of tires but they had lots of tread left. I can't think of any parts that would have been needed.

[Zembonez]

Originally Posted by bond220

That's interesting. Then a fair price would be the book wholesale value minus any cleanup cost? In this case the car was not pristine but was in pretty good shape with no dings or dents or upholstery problems. It was on its second set of tires but they had lots of tread left. I can't think of any parts that would have been needed.

Yes, It is reasonable to expect wholesale less reconditioning costs. Dealers certainly have the right to expect to make money on the trade. What is in question though is the amount they charged you. It sounds from your description to be excessive but I wasn't there and did not inspect the vehicle so I can't say for sure. It pays to know what the wholesale numbers are for your car before trading and some vehicles are more in demand than others, so prices offered do vary. KBB.com is a good place to get a pretty close value for your car.