Fair Trade-in Price From Dealer

[IvanM61]

Looking to go with the 2023 3.5T GV70 from a very new 1,325 mi 2023 2.5T. Local dealer where I purchased from really looking to screw me. Offered 46 when I paid 67 out the door. What should I counter offer them?

 

[RCH04]

You might want to check Car Max and Carvana and see what they'll pay you for it. That will give you an idea of what you can get for the car and if you don't take one of their offers you can use it with the dealer. It only takes a few minutes with either of them.

 

[Jlapaglia]

For the car you currently own, I would look up what a similar package car with similar miles is retailing for then see what the difference is. That would be their potential gross profit to try and negotiate with. Are the cars in your area selling fast or sitting on the lot? Also, what was the price before taxes that you actually paid? Just make sure you are comparing the correct numbers. Either way I would assume about a 15% loss would make sense for a used 6 mo to year old car.

 

[Bakonyi]

Another excellent website: Kelly Blue Book. Or, WWW.KBB.com

 

[IvanM61]

Yeah I was supposed to hear from the sales guy who had put my VIN in at Carmax. He claimed it came back stumped. He stated it may be for being so new. I wanted the 3.5 but none where being made with the chip supply chain problem. They wouldn't even take an order for one. Kinda sucks losing 15% on a hot vehicle with under 1,500 miles.

 

[Tau]

Looking to go with the 2023 3.5T GV70 from a very new 1,325 mi 2023 2.5T. Local dealer where I purchased from really looking to screw me. Offered 46 when I paid 67 out the door. What should I counter offer them?

Don't counter such an unscrupulous dealer. Walk away for good and take your vehicle to a CarMax and maybe another Luxury brand dealer to get offers.
If you have to have the 3.5T, try to find a reputable GMA dealer.

Best of luck.

 

[IvanM61]

Hey all, I have set up a appraisal @CarMax. I ran the numbers of my actual sales price to their trade in offer. It came out to slightly more than a 22% depreciation value. Again when made GV70 had 1325 miles on it. My experience with the dealership was never good, salesman is good kid, his bosses are the problem. Dealerships are the reason why before this purchase my previous new car purchase was in 2005.

 

[csu87]

A fully loaded gv70 2.5 with the expensive matte paint has an msrp of 57k. They probably will be able to get 53-55k at most. 46k probably on the low end of their window, but not terrible

The otd price with all taxes and fees is pretty irrelevant to anyone buying a used car, especially if you're trading it in. You will always lose that money

 

[IvanM61]

I am not looking to buy a used car. I did though find the price I paid. $60,159 was the selling price without fees and taxes. $46,000 trade in offer is over a 22% depreciation and is terrible on a trade in with a 1,325 miles on a loaded GV70. I was there to upgrade not be treated like a fool. When I had purchased this 2023 vehicle they tried to sell me a used 13 plus thousand mile 2022 6cyl GV70 the service manager was driving for about the same price as I paid for the new 2023 2.5 GV70. Tomorrow I will get a fair valuation and decide what I will be doing.

 

[RCH04]

I am not looking to buy a used car. I did though find the price I paid. $60,159 was the selling price without fees and taxes. $46,000 trade in offer is over a 22% depreciation and is terrible on a trade in with a 1,325 miles on a loaded GV70. I was there to upgrade not be treated like a fool. When I had purchased this 2023 vehicle they tried to sell me a used 13 plus thousand mile 2022 6cyl GV70 the service manager was driving for about the same price as I paid for the new 2023 2.5 GV70. Tomorrow I will get a fair valuation and decide what I will be doing.

If you haven't already, it might be a good idea to go online and get an offer from Carvana to compare with your CarMax offer. It only takes a few minutes. When I was considering trading in a car often times there would be a $2k-$3k difference in them. Sometimes CM was higher and other times Carvana.

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[csu87]

you can try Vroom as well for an online price.

but, the bottom is falling out of the used car market in this price range. People arent as willing to buy used for just slightly less than new, when new cars production is starting to catch back up/people are becoming more and more willing to wait.

With a used genesis, you also have to look at how much value is added with the New Car warranty vs the used warranty. a lot of genesis market is buying a genesis because of the warranty, so that affects the resale value as well.

Dealerships arent in the business of giving away free money. They want to make money of the vehicle as well, and i imagine the market for a used GV70 2.5, even a 2023 with only 1k miles, isnt strong enough to give you much more than 47-48k. If you cant take the hit on the trade, should probably go the route of selling privately.

Another thing to consider is the tax benefit of trading in vs selling privately. depending on your location, you would only be taxed on the difference of the trade in vs the new car, instead of the full value of the new car. In my area, thats a 3-4k swing

 

[IvanM61]

Thanks for the input. I just got back from CarMax and it was the same price that good kid salesman stated the dealer would probably go to.... $47,000. I'm gonna pay it off soon and wait out the market if I'm gonna take such a large hit like this. I just don't see the dealership giving away money when they can make quite a bit off the trade-in and full profit from the selling price, and perhaps a vig on the financing. I guess this 15% is no longer applicable. Heck, it appears 20% doesn't even apply.

 

[IvanM61]

In reality at this point I should just spend to get my stroked out 300C back on the road to feed my need for chits, giggles and grins. 11.6 @123 in the quarter mile w/ a 4200lbs four door. On 93 pump gas.

 

[csu87]

Thanks for the input. I just got back from CarMax and it was the same price that good kid salesman stated the dealer would probably go to.... $47,000. I'm gonna pay it off soon and wait out the market if I'm gonna take such a large hit like this. I just don't see the dealership giving away money when they can make quite a bit off the trade-in and full profit from the selling price, and perhaps a vig on the financing. I guess this 15% is no longer applicable. Heck, it appears 20% doesn't even apply.

The used car market is only going to get worse. back before covid and all the shortages hit, it was pretty typical to take a 20% hit as soon as you drove it off the lot. And that was with a private sale. Trade ins are almost always worse than a private sale, because they need to make money as well, and are going to sell it at that private sale price. We are starting to get back to that point with most vehicles, especially luxury vehicles in this price point.

Like i said, you could probably sell privately for low to mid 50s, but you will then have to pay full taxes on the new vehicle. And deal with all the hassles of selling a vehicle

 

[EdP]

The used car market is only going to get worse. back before covid and all the shortages hit, it was pretty typical to take a 20% hit as soon as you drove it off the lot. And that was with a private sale. Trade ins are almost always worse than a private sale, because they need to make money as well, and are going to sell it at that private sale price. We are starting to get back to that point with most vehicles, especially luxury vehicles in this price point.

Like i said, you could probably sell privately for low to mid 50s, but you will then have to pay full taxes on the new vehicle. And deal with all the hassles of selling a vehicle

Some time back I was "trading" a 15 year old car that was a step above junk yard. I was offered $2000 for it. The advantage of the deal was not having to sell a beat car, saving the tax on $1900, and I had a ride to the dealer to pick up the new one. I'd have still gotten the $2k discount from sticker but other items were a benefit.

Check out the other ways of selling but consider all the benefits.

 

[Trixie86]

Some time back I was "trading" a 15 year old car that was a step above junk yard. I was offered $2000 for it. The advantage of the deal was not having to sell a beat car, saving the tax on $1900, and I had a ride to the dealer to pick up the new one. I'd have still gotten the $2k discount from sticker but other items were a benefit.

Check out the other ways of selling but consider all the benefits.

The convenience and tax savings are the biggest benefits of trade ins.

 

[Mcc]

The convenience and tax savings are the biggest benefits of trade ins.

Tax savings? Maybe in your state but not in my state, California. If you live in California, Hawaii, Kentucky, Maryland, Montana or Washington, D.C., you pay sales tax on the full price of the new vehicle, regardless of your trade-in allowance!

 

[Trixie86]

Tax savings? Maybe in your state but not in my state, California. If you live in California, Hawaii, Kentucky, Maryland, Montana or Washington, D.C., you pay sales tax on the full price of the new vehicle, regardless of your trade-in allowance!

Yeah, just changed last year in Illinois. With Chicago tax, it would be 10.25%!

 

[fourthirteen]

Tax savings? Maybe in your state but not in my state, California. If you live in California, Hawaii, Kentucky, Maryland, Montana or Washington, D.C., you pay sales tax on the full price of the new vehicle, regardless of your trade-in allowance!

That tax savings probably going the way of the DoDo bird everywhere. Surprised it’s lasted this long.

 

[SuperKing]

Luxury cars just depreciate faster than others... especially Genesis...

I traded in my 2015 Genesis V8 Ultimate after 5 years for $16k CDN and it retailed for $65k CDN. I got more for my 2011 2.0T Sonata Limited after 5 years and that car was half the cost of the Genesis new. Of course sometimes the fast depreciation works out in your favour. I snagged a nearly new 2020 G90 V8 Ultimate demo car for $60k CDN. With the trade in, I got a G90 for the price of a fully loaded Sonata Hybrid...