traiding in a car of more value...

the drifter

does this work...

say im buying a car valued at 8000 and i have a car of trade value 12000 do garages do deals like this?? will i get 4000 of the garage..

and before someone suggests it i am trying to sell the car privately also...

rebel.ranter

You might get €2000....if you're lucky.

bazz26

You will not get the true value of the car from a garage in that situation. Garages are in the business of making money so expect to loose out in a deal like that.

If you can sell the car privately do it.

Atomic Pineapple

you will lose too much on the value of your car doing that, your much better off selling it privately, unfortunately not many cars are selling at this time

the drifter

Nothing is selling at this time!!

djimi

There isnt a hope of you getting anything like the real value of the difference. Like someone said, you might get €2000 tops. Unforunately the way it works is that if your car is worth €12k then that is what they are going to be selling it for, so they are not going to give you its proper worth or they wouldnt make a profit.

What kind of car is it? Sorry if this sounds obvious, but have you tried CarZone?

the drifter

on carzone adverts buyandsell and carsireland...

kazul

If it's worth 12000 as a trade-in then you should get 4k back against a car that's retailing for 8k

smash

if cars like yours are selling for 12, the garage will probably give you the other car + 1k max.

djimi

kazul wrote: »

If it's worth 12000 as a trade-in then you should get 4k back against a car that's retailing for 8k

If a cars worth 12k and the garage gives him a car worth 8k and €4k cash, how are they going to make a profit on his original car, assuming they are only going to get the €12k back for it...?

kazul

If it's TRADE-IN value is €12k then he'll get his €4k back

the drifter

ive emailed a couple of garages there im after a focus van for around 8k im trading in a nissan navara jeep http://www.carzone.ie/used-cars/Nissan/Navara/D22-2.5tdi/875537/ it will be intresting to see what response i get now...

gabgab

You cant use the term worth uless that is what you precisely know it is worth and know all the facts regarding it,

Any car traded into a garage has the following costs attached to it, this is not to say that these apply to your car but still will apply:

Readvertised
Valeted
House charge that a garage applies to cover fuel, space on the forecourt etc,
A service as per schedule by manufacturer,
Warranty charge that garage has to be applied to every car for when it is sold to the next customer,

Then there are the possible charges, eg:
1)Small bodywork that may be nothing to the person trading the car in but could be a problem to a person looking at potentailly buying your new car
2)Tyres, which again may be fine to the owner but would you buy a car with legal but not great thread,
3)The possibility that this car if you are the second or more owner has previously been painted and you do not know about it,
4)Market trends, eg if a couple of thousand of these vehicles are around then the competition increases and desirability decreases

Then it must also be remembered that if a car is for sale for €10,000 how much will someone actually pay for it?? They might offer €8,500 have a big haggle, press, push, say they can get it cheaper and end up paying €9,200 for it.

So when you take all the costs and add them up, bear in mind that for the garage to make a profit, you can see where the costs add up,

In this instance, including the projected discount and ignoring all incidental costs like bodywork and tyres, its about €1,500, and that is ignoring any profit made.

Just said I would throw it up to possibly give people an understanding of the way it works,

Thanks,

the drifter

thats some good feedback there! id never have thought of half of that

kazul

gabgab, that's spot on. The other major factor in this deal would be the VAT, i.e. has the vat been claimed back on the navara?
The point I was trying to make related to the trade-in value of 12k, in this case it's not worth that much. Sorry the drifter, but remember the best deal is the one that you're happiest with. In theory it's possible to get money back on a deal.

gabgab

No problem man

I see you on the fitness forum, drop me a pm if you want any advice, but to be fair, everyone reckons they understand costs and gets upset about trade in figures

They forget that these places are a commercail entity and with margins of around 10% but a financing of stock costs of nearly half that, and a car of €30,000 realising a balance sheet profit of generally about €1,500

Its not as profitable as carzone and people who browse it seem to believe,

the drifter

im not too worried about what profit the garage make off me to be honest... all i know is with dozzil at 1.30 at the pumps today and my mileage increasing...jeeps gotta go in place of a van!

bazz26

kazul wrote: »

If it's TRADE-IN value is €12k then he'll get his €4k back

OP what car did you get that trade-in valuation? That trade-in allowance might be ok against a new more expensive car where the dealer has more scope for profit. But you can be sure you will not get that same allowance against a car of lesser value where the dealer is making no profit on the deal at all.

Like private sellers at the moment dealers are finding it hard to shift second hand stock too so the OP will not win from a deal like this assuming a garage will want to do business.

rambo10

they will do 2 deals. buy your car at the trade price and sell out the car you want like a straight deal. so if your car is on the market for 12k its not worth that to a dealer, eg list price 7995 sell to you at 7k. buy your car for 9,250. you might get 2,250 back

RobAMerc

I imagine most dealers are trying to convert their expensive stuff into less expensive stuff so I would doubt anyone is interested in doing a deal with you on that one.

You may find someone with a car worth a slight bit more willing to do business but it will be tough work.

L-M

From the carzone add looks like the Navara has been sold. So therefore unless thedrifter comes back with what happened this has gone past it's sell by date lol.