Trade Ins - Do all dealers use the same network?

[FormulaFG]

Can anyone clear up whether or not all Ford dealerships use the same system to move on their trade in vehicles?

I'm trying to secure a deal on a new FG XR6T at a particular Ford dealer, but they are not coming to the party on the trade in price. They tell me they have smaller dealers who buy their trade in cars online and they "can't quite get the price I'm after"

So, will it make a difference if I go to another dealer, or will my car end up on the same system in front of the same buyers?

Note: I'd rather not name the dealerships I'm currently using or the one I'm thinking of using, unless it helps answer the question?

[HULK_I6T]

What car you trying to trade in? Usually they only want to sell late model cars and want low km. Then they have to provide a warranty and build in a buffer for any issues the car has ( lets face it people always try and move on a problem car).

for older cars they will generally only pay $500-1500 real money.. they might say more but they are stinging you harder on the price of the new car.

[GasoLane]

They're 'smaller dealers' probably means that if they can't resell it on their lot it's off to the auctions.

If they wont give you your price why not sell it privately?

[FormulaFG]

Originally Posted by HULK_I6T

What car you trying to trade in? Usually they only want to sell late model cars and want low km. Then they have to provide a warranty and build in a buffer for any issues the car has ( lets face it people always try and move on a problem car).

for older cars they will generally only pay $500-1500 real money.. they might say more but they are stinging you harder on the price of the new car.

Car in question is 05 BF XR8. Has acceptable kms for its age.

Originally Posted by GasOLane

They're 'smaller dealers' probably means that if they can't resell it on their lot it's off to the auctions.

If they wont give you your price why not sell it privately?

That may be an option, but I don't want the hassle. The price I want from them is $3k less than I would want if I did the leg work and they still can't make it happen.

[danzvtil]

It doesn't matter where they dispose of your trade in, its worth what its worth. What does matter is your changeover price, that can vary hugely from dealer to dealer, have you been to another few dealers for a price?
I find it helpful to never get into the nitty gritty of what your trade is worth, they can only pay wholesale, and will have you against a wall pronto.

[Itsme]

Most dealers are the same when it comes to trade-ins, you are better off selling privately if you think the car is worth more, in fact most dealers will tell you this.

[BENT_8]

If the trade in is not the type of stock they want it will be wholesaled to a buyer and end up in a smaller yard.

A particular Dealer may wholesale to a particular buyer, or he may have a few for different stock.

[cro142]

Most dealers will simply ring around the wholesalers for a price.
They may or may not offer you that price, but use the price to build the deal.

Dealers can't afford to buy trade-ins - so except for a very few attractive and saleable cars for their used car division, most go to the wholesale system.
Wholesalers will on-sell to trade contacts, or sell to the trade by auction.

You will always get a better price if you sell privately, even at a price that is very attractive to the buyer.

[Yellow_Festiva]

Trade in value can greatly change depending on what deal they are doing on the car they are selling you Ane how desperate they are to make the sale.

You don't want any hassle, trade it in and cop the loss. Want more, sell privately and deal with the riff raff. Just the way it is.

[sneaky]

if you have any other dealers near you it might be worth the drive to ask the question of changeover price.

surely it can't hurt any, at the worst you will get a worse offer or the same offer. at best you might get a better price.

[Hulsty]

Who cares what the trade in is, all that matters is the change over price. Screw them harder on the new vehicle.

05 XR8 wouldnt be worth much anyway.

[GCRXR6]

[QUOTE=FormulaFG;5085643]Car in question is 05 BF XR8. Has acceptable kms for its age.


Your dealer probably doesn't want it .. she's an eight year old now...getting a bit old.

[mechanic]

I'm surprised at the type of vehicles that my local wrecker sends to the crushers, seems that once a car has a 100k or so on it that's near enough and feed it through the smelter and make another one.
Trade ins are probably worth the metal price unless there's a particular market for the model.
Can't see it improving now we've dropped or going to drop the import tariff either.
Next door neighbour was GIVEN a 10 year old BMW, $61,000 new and the owners had not bothered servicing it, few things to fix but he's still driving it around.

[Smoke Pursuit]

Dealers don't all use the same wholesalers.

Usually dealerships will work with wholesalers / other dealers in their local area. For a 2005 XR8 they would be shopping it out around little dealers most probably, manufacturer dealers don't like older stock because of warranty etc.

Usually they will put a price on with around $200 - $500 in it for them. So if the wholesale dealership offers them $6500 they will give you $6000 and pocket the change. Sometimes if you have something special they will keep it for their own stock. But something that was 9 years old would have to be very special with under like 70,000 kms.

What have they offered you? Around 10 kay?

[FormulaFG]

Originally Posted by DASH GT

Dealers don't all use the same wholesalers.

Usually dealerships will work with wholesalers / other dealers in their local area. For a 2005 XR8 they would be shopping it out around little dealers most probably, manufacturer dealers don't like older stock because of warranty etc.

Usually they will put a price on with around $200 - $500 in it for them. So if the wholesale dealership offers them $6500 they will give you $6000 and pocket the change. Sometimes if you have something special they will keep it for their own stock. But something that was 9 years old would have to be very special with under like 70,000 kms.

What have they offered you? Around 10 kay?

I want 10k from them. They came back with 7.5k. The car is insured for 11k........you see where this is leading?

[Poetic Justice]

Redbook implies that an 05 BF XR8 trade value should be approx $5,700 - $7,500 with kms ranging from 140,000-230,000.

Fair question: If you were going to advertise it for sale, how much would you ask for it?

[GasoLane]

Originally Posted by FormulaFG

I want 10k from them. They came back with 7.5k. The car is insured for 11k........you see where this is leading?

Yep, you're going to 'accidently' crash the car and collect the insurance

[jimmyxr6t04]

Considering the redbook valuation, and not knowing the kms of your car, i'd say that $7500 is reasonable. It's right on the upper range of trade in value, so if your car has much lower kms, and in great nick, push them for maybe $8500 and be done with it.

Either way, if the price is good for the new XR6T, then i wouldn't even worry about the extra $2500 you missed on the trade in... If they won't come to party on the trade, counter offer of $1000 less on the XR6T, and accept the $7500 trade in. You're only $1500 away from where you want to be...

I wish my purchases were always that close haha, sometimes i take bigger hits because i want the other car, and so be it.

05 XR8 the kms would want to be under 100,000 to be considered low. At slightly less than average kms it'll have 135k on the clock.. i'd be hesitant to pay over 10k for a car like that (pending condition of course)...

[amiers]

I am a motor dealer and believe me the market for any Falcon is gone. $7,500 is a very good price, take it and run. Having said that as a few above have said, forget the trade in price walk in and say straight up I want this much changeover, and I will do the deal now. if not im going elsewhere.

[Morexbs]

As a previous poster said it's not the trade in price that you should be concerned with,it's the changeover value.Some larger franchise dealers sell their trade ins via a tender system but they all "make a phone call" to get a firm buy price on any car they don't want to keep before they trade it.If you don't want to sell privately what you need to be doing is taking the car to a yard that sells that type of stock and ask them for an outright buy price.That way the wholesaler is out of the picture and there is one less profit being made on the car.Sell the XR8 first and then shop around and find the dealer with the best cash price.

[EVL BOS]

As other have said it's the change over price that you need to worry about. Don't be focused on the trade in price and also the price you want is a retail price not wholesale price which the dealer is paying you. The retail price is what the dealer will sell it for if they keep it. If you really want the retail price then put it up on carsales for that amount and sell it privately. When I bought my st while I waited the 4 months for it to arrive I tried selling my XR8 privately but gave up the market for v8's is dying in the end I traded it in, they offered me $7000 which is a good price. But I wasn't fussed its the change over you have to worry about. And also one way dealerships inflate a trade in value is to take the money off the new car in the deal so on paper it looks like you got more for your car but in reality you didn't.

[GREGL]

Insurance sometimes plays a misleading role in a owners perception of actual value . If you insure a vehicle for agreed value you generally pay a premium above that of market value . Now the buyer may well look at it differently , market value is what they are interested in . My old 06 xr8 was market value $27000 to the insurer at the time I was selling , no way I was going to get that . Put it up on here for 18000 and didn't hear boo .
To cut a long story short I traded it for 14000 and left the drama of selling it to the dealer , cause if there is one thing that is a pain in the butt these days it is dealing with joe public and their lack of respect for your time . That is of course if you actually get a phone call !

[Kayos]

As some have said, it's all redbook and has been for years.. The prices are crunched and put on a page unfortunatly sometimes they are way off.

[LASGT8]

Wait for a couple of days before the end of the month and you will more than Likely get a better deal if you play your cards right.

[amiers]

Originally Posted by Kayos

As some have said, it's all redbook and has been for years.. The prices are crunched and put on a page unfortunatly sometimes they are way off.

Most dealers worth their salt don't use red book. if you look at red book the trade price is normal between x and y and can be a big gap. most of us go by the auction price of a vehicle, so we know what we will get for it worst case.

P.S dealers look at red book in front of the customer so they think the price is from some one else.

[ProjectXY]

I'd keep the car you've got drive it till it stops. I'm sick of trading cars for less than what is a reasonable price.

I can guarantee you that the car they offered you $7500 for will be in another yard for $11500. Not to mention that as soon as you drive the new car out of the dealership you've already lost 7K. Is there really over 15k difference in the cars I doubt it.

They have made debt to easy to obtain. Be happy with what you have already screw em I say f*n theives the lot of them.

[Seaton]

Insured price doesn't mean anything, nearly every car is over insured. My 2011 fg xr6t with 30k on it is insured for over $35k. I'd get 10k less than that for a private sale and be lucky for $20k trade in.
Take the $7500, or go through the hassle of trying to move it privately. In which you may get no more.
But I don't know how many km you have on it....

[zabatron]

If you can afford to do so,sell your car privately and do a cash deal on the new car.Nine times out of ten you will get thousands more than the dealers trade in offer in a private sale.As an example,went to purchase a new car a few years back,had an immaculate 2 year old Suzuki Swift with 30000km as a trade in,dealer offered me $9000 as a trade in and gave me every excuse as to why it would be hard to sell it.I asked for my keys back,and got a better deal for cash from another dealer that actually had the car I wanted in stock.I then sold the Suzuki privately about a month later for $14000(and yes it took about a month for the phone to ring,but well worth the wait and private sale hassles to have an extra $5000 in my pocket.).

[GREGL]

Originally Posted by zabatron

If you can afford to do so,sell your car privately and do a cash deal on the new car.Nine times out of ten you will get thousands more than the dealers trade in offer in a private sale.As an example,went to purchase a new car a few years back,had an immaculate 2 year old Suzuki Swift with 30000km as a trade in,dealer offered me $9000 as a trade in and gave me every excuse as to why it would be hard to sell it.I asked for my keys back,and got a better deal for cash from another dealer that actually had the car I wanted in stock.I then sold the Suzuki privately about a month later for $14000(and yes it took about a month for the phone to ring,but well worth the wait and private sale hassles to have an extra $5000 in my pocket.).

It helps when you have a car that is relatively popular . Trying to move a 6/8 cyl. holden or ford these days is a tad harder .

[kaniSS]

Don't dwell on a couple of G's if you like the car. 7.5k is good, take it and enjoy your life with your new car.