When Should I Mention the Trade-in?

buyer012buyer012 Member Posts: 1
edited November 2014 in General
Hi all,

I will be negotiating prices for a new car online. I read that you should not mention that you have a trade in until after you agree a price on the new car. My question is, do I mentioned immediately to the dealer who offered me the best price that I have a trade in available (i.e. via online)? Or do I "surprise" them by just showing up to the dealership and the negotiating from there? Or should I just tell them in the beginning of the process?

Also, I like the idea of negotiating the price of the new car from the OTD perspective. Would negotiating OTD price be feasible considering I have a potential trade-in that I have not mentioned yet? Additionally, I live in a state where the sales tax is based on the net purchase price (cost of new car - trade in). What I am trying to get at is, what is the best approach to bring up the trade in?

Also, for those who might mention it, yes I know I *might* get a better deal if I sell it privately but selling to the dealer is the best option based on my current situation.

Thanks for your help!
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Comments

  • steverstever Guest Posts: 52,454
    edited November 2014
    Dealers have heard it all so it's unlikely that you'll surprise anyone when you say "by the way, I have a trade". You may negotiate a great deal on a car only to hear "we don't want your trade" when you finally bring it up.

    Figure out how much your trade is worth. You can appraise it here to get a good idea. Visiting a couple of dealers will dial the number in better. If there's a CarMax near you, get a quote from them.

    One technique you can try is to go to the dealer and say you're interested in the 2015 Hupmobile. Then when the salesperson offers you a test drive or asks you what you want your payment to be, say it's no use doing anything else until you find out how much your trade-in is worth. Let them check out your car and give you a number.

    Then get your keys back.

    Then take a test drive and talk numbers if you wish.

    Rinse and repeat at the competition. Or ask for some dealer quotes and mention that you have a trade that XYZ Dealership told you is worth $xx,xxx.

    The best "game" to play is figure out what you want for your trade and what you want to pay for your new car. Then if the dealer can's get the numbers to work, or if they don't honor their price when you go to buy the new car, simply walk out and look some more. Or at least think about your numbers for a few days.

    Three Steps To Trading in Your Used Car

    Car Buying Myths and Misconceptions

    (And yeah, figuring out the numbers lets you do an OTD purchase and can save some hassle).
  • buyer012buyer012 Member Posts: 1
    stever said:

    Dealers have heard it all so it's unlikely that you'll surprise anyone when you say "by the way, I have a trade". You may negotiate a great deal on a car only to hear "we don't want your trade" when you finally bring it up.

    Figure out how much your trade is worth. You can appraise it here to get a good idea. Visiting a couple of dealers will dial the number in better. If there's a CarMax near you, get a quote from them.

    One technique you can try is to go to the dealer and say you're interested in the 2015 Hupmobile. Then when the salesperson offers you a test drive or asks you what you want your payment to be, say it's no use doing anything else until you find out how much your trade-in is worth. Let them check out your car and give you a number.

    Then get your keys back.

    Then take a test drive and talk numbers if you wish.

    Rinse and repeat at the competition. Or ask for some dealer quotes and mention that you have a trade that XYZ Dealership told you is worth $xx,xxx.

    The best "game" to play is figure out what you want for your trade and what you want to pay for your new car. Then if the dealer can's get the numbers to work, or if they don't honor their price when you go to buy the new car, simply walk out and look some more. Or at least think about your numbers for a few days.

    Three Steps To Trading in Your Used Car

    Car Buying Myths and Misconceptions

    (And yeah, figuring out the numbers lets you do an OTD purchase and can save some hassle).

    Thanks so much!
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