Trading in more value than purchase...

mikecheck

Wanted to get some advice on a car buying scenario I've never dealt with. After my dad passed away not too long ago my mom was left with 2 vehicles. She's wants to trade both in for one upgraded vehicle & asking me to help. Using ballpark numbers she has about $40k of trade-in but what she is looking at is probably only around $30-35k.

I know dealers will pay out the difference in cash but I wasn't sure if she would get more "value" by maxing out her trade-in, whereas getting cash you'd get less out of the dealer. End of the day she's not necessarily looking for cash as much as good deal, but the expectation is no additional out of pocket money.

Worth noting I know she'd probably get more selling cars outright but she's just not wanting that headache nor do I want strangers showing up to my mom's house where she's all alone. Unfortunately I live too far away to coordinate showing & test drives.

Any input would be appreciated!

kyfdx

mikecheck said:

Wanted to get some advice on a car buying scenario I've never dealt with. After my dad passed away not too long ago my mom was left with 2 vehicles. She's wants to trade both in for one upgraded vehicle & asking me to help. Using ballpark numbers she has about $40k of trade-in but what she is looking at is probably only around $30-35k.

I know dealers will pay out the difference in cash but I wasn't sure if she would get more "value" by maxing out her trade-in, whereas getting cash you'd get less out of the dealer. End of the day she's not necessarily looking for cash as much as good deal, but the expectation is no additional out of pocket money.

Worth noting I know she'd probably get more selling cars outright but she's just not wanting that headache nor do I want strangers showing up to my mom's house where she's all alone. Unfortunately I live too far away to coordinate showing & test drives.

Any input would be appreciated!

It really shouldn't make any difference from the dealer. The car is worth what it's worth. The dealer isn't an individual that has to keep the cars. He is going to sell them. So, the trade-ins being worth more than the purchase shouldn't be an issue.

But, every transaction with a dealer is a chance for them to take advantage of you. Trading in two cars for one is three transactions. You have to be careful.
The key is to know what the cars are worth, before you start working on a deal (plus, the value of the car you are purchasing).

If you have a CarMax nearby, they will make an offer for your car that is good for seven days, and isn't contingent on you buying a car from them. This will give you solid trade-in numbers to work from.

Also, if your mother has $20K cars, the chances of getting them sold to an individual buyer are pretty slim.

Mr_Shiftright

In addition to being armed with CARMAX quotes, which is a great idea, Mom should also use the Edmunds website to price out exactly the new car she wants....that is "build" the car she wants, with options she wants, and then find the "target price". So, with both CARMAX bids and a "target price" on the new cars, she is much better equipped for whatever the dealer might throw at her.

There are really three deals going on here as kyfdx has mentioned. Each one is subject to negotiation. Don't lump them or you'll end up trying to make the trades fit your new car. It's so tempting to hear the dealer say: "OK, you give me those two cars and I'll give you this one--fair enough?"

Maybe not. Maybe your trades need to come up and his new car has to come down.

How well this works for you might also depend on what type of cars you have and which dealer you go to. Some dealers may not really want your type of car, others might have a better buyer base for them.

Michaell

If you could be specific about what she has and what she wants, we can likely give you more tailored advice.