well i posted a topic on financing for the Is and i got great responses and a lot of info.....my last question concerning me is about trading in. Will lexus pay off the remainder of my loan for my celica and apply the rest to my downpayment? I owe about 8K and the blue book on my car is in the 11K range so would they just give me 3 k to down on my car?

 

Best thing to do is sell your car privately. NEVER do a trade in for the dealer. Sometimes it seems like they are giving you a good price on a trade in but they make up for it not giving you such a good on the new car you are going to purchase.

Just put your car on autotrader.com, craiglist.com, or even ebay.com. Just do youself a favor and sell it privately and I guarantee you will get more then any dealer will give you for a trade in.

 

I think it varies from dealer to dealer. I got a great deal on my trade in and the new car (1k over invoice).

 

Yes, they apply the difference as cash down usually. Depending on the state, a real advantage of trading in is that you may only have to pay sales tax on the difference. That combined with the convenience is why I always trade in my car. Just have an idea what you are willing to accept for your trade and pay for the new car. As long as you stick to your guns - it almost always works out.

 

Your celica will be an easy car to sell...for trade in, like all other cars they will give you LOW Blue book minus any costs for resale. (Usually 1500-2000) So if your cars trade in value is 11k on Kbb.com they will ACV your car for anywhere from 9-9500. Now they can show you whatever numbers for your car but they'll just charge you more for the car you're buying. Sell your car if you have a week or two. It's very easy to do. Autotrader.com, cars.com and you'll get more close to retail for your car.

 

I was going to trade in a car to purchase my Lexus. KBB was 21k on the vehicle I took it in and Lexus said they would give me $16k best! I told them no thanks and walked out. I sold it 5 days later for $23k out of www.autotrader.com NEVER TRADE IN! Sell it on your own!

Bty-I didn’t get my car from the dealer either…. If they want to bend you over on your trade in they don’t deserve your business!

 

alot of people that wants to trade in the vehicle majority wants it for retail value. others wants it exactly at trade in value and others think their car are excellent conditions. if you think your trade in value is worth that much why dont you call kbb and ask them to write a check to you. we all know that dealership never give exact amt. remember they have to fix recon the vehicle back up and resell it on the lot. also if someone owes 15k on a car and wants the dealership to give him 15k if they dont get amt they want they get mad, so if you owe nothing does it mean its worth nothing?

so let me asked you guys this question, if retail sticker for example 24,995 say invoice is 21,xxx, y do u still negoiate, thats market retail value. everyone wants more for their trade and payless for a new one.

 

You wont get retail for your trade because then the dealer wont make money when they sell. If you need some extra money sell it on your own, if you don't need any money then trade it in.

 

The only good thing about a trade-in is a tax write-off.

 

As pointed out, often you get the sales tax credit. So if they give you $11K for your car and you are purchasing a $20K car, you only pay tax on $9K. If your sales tax rate is 7% then you just saved $770.

However, as pointed out, the dealer often gives you nothing near "blue book". Often they start at "black book" and the amount is shocking. If your car blue books at $11K, don't be surprised if their first offer is $5,500.

 

huh thats shocking....my buddy just got an es and they gave him 10 for his civic which kbb said was worth 11....and when i got my celica they gave me blue book for my old explorer. i guess it just depends on the dealership. thanks for the info....i never ran into the problem of still owing money on a car during the trade in. you guys are very helpful....i most likely will sell it on autotrader or ebay cause i know there is some stupid kid in this world that will pay me more for the car then its worth.

 

I would recommend getting a number from CarMax (Assuming you have one near you) - then at least you have that in your pocket. Also remember I said they "start" at a given # - you need to move it up from there.

 

Unless you know someone who really wants your old car and is willing to pay good money for it, you are probably better of, in most cases, trading. You won't get as much ( though if the car is in excellent shape and you know the people at the dealership you will sometimes get Bluebook ) and there a LOT fewer hassles doing it on a trade....all you do, essentially, once the finances are worked out, is just clear out all of your personal junk from your old car and hand over the keys. The dealership then takes your old car, inspects it, refurbishes it, applies any recalls or TSB's, brings it up to at least State Inspection standards.....( more if it is going to be a Certified Used Car )........and then puts it on the lot for resale. The dealership also has a Notary Public right there for signing over the old title (if the title itself is clear, of course) so you don't have to find and pay for a Notary yourself, and can give you 30-day or 60-day temporary tags so you don't have to play the risky guessing game of who is going to drive home with who's plates (if you are stopped by a cop for any reason) when it is a private sale. In addition, you avoid the inconvienences and charges of advertising it and the potential risk of carjackers coming out for a test-drives.

 

selling your car can be a hassle, people calling middle of night, setting appt for a test drive, have you fix problems on the vehicle, taking a chance of getting car jack, rob or getting kill, these days you dont know who you will meet. yea so i agree with mmarshall statements