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[WA] dealer trade-in tips... any?

vombil

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im kinda stumped that dealers get away with paying less than retail for your trade and then try and sell you the vehicle you want at full ticket. essentially they get a double profit scenario with any late model trade that they keep and sell on their lot. Is there any way around this? tips and tricks?
I need to get into an auto because of an old sporting injury to my knee. I don't really want to pay them thousands of dollars for a less desirable car (auto).
 

blackve76

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Sell car private and buy from auction saves you thousands. You may get a good end of financial year buy from dealer wanting to get rid of stock
 

gossie

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It's called business.
No profit in business, = no business.
 

Voodoo_SV6

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Think of a car thats realistically worth $8000. Dealer has to put a three month warranty on it and make a profit and then has to add GST. So they'll offer you $5000, so they can add $1000 to cover warranty, $2000 profit and then $3000 to catch out the people who don't know how to negotiate. Thats $11,000, then add GST, all of a sudden it's on the lot for $11,990, for a car they offered you $5000 for. There's always decent margins in the ticketed prices.
 

vombil

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they add 'yard fees' of $2000 to each and every car regardless of condition to cover bringing it into stock, paying there rent and wages etc etc. then they add recon and profit. I know they need to make money but geezz- a trade is where its at for them. I would have thought you could find a sensible dealer that will say OK - I'll give you a great trade price because it will mean that I get to sell you another car on the lot or ill give you wholesale as as trade but i'm prepared to talk on the price of the new car. None seem to do it. All they do is bitch and moan that the RRP is pretty well fixed because of internet pricing being so competitive. I like the idea of selling in a retail market and then buying at auction but i don't like auctions
 

rambunctious

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At this time of year dealers are desperate to get rid of cars so play the game with them, and it depends on what you want, new or second hand.

Don't be afraid to offer stupid low prices on second hand cars, all the seller can say is no, and there are thousands of cars for sale, and you are the only buyer there at that point in time,so don't be in a hurry.

Most of my car purchases over the years have been private or auction, but be warned, auction is basically retail due to wankers who keep putting their hand up, so know the value of what you are buying.

I remember going to an auction and noticed on one particular vehicle, the representative from the selling dealer hiding behind a post putting his hand up to push the price up, and the auctioneer thought it was funny, until I pointed it out to the manager, who of course denied it happened until I showed him the video on my phone and threatened to take it to the authorities, so be very careful of auctions, and don't go to your first auction expecting to buy a car straight away, and also keep in mind, auction cars are unregistered as is where is to the public..

Look on Redbook for prices of the vehicles you are interested in.

If you have to finance, do the sums as to what the finance costs are, and remember Dealers make money from finance as well as extended warranty, which usually are not worth what they cost.

Last but not least, dealers only make money when they sell, so they will try every trick in the book to get you to buy, and if there is more than one salesman pressuring you, walk away.
 

rambunctious

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they add 'yard fees' of $2000 to each and every car regardless of condition to cover bringing it into stock, paying there rent and wages etc etc. then they add recon and profit. I know they need to make money but geezz- a trade is where its at for them. I would have thought you could find a sensible dealer that will say OK - I'll give you a great trade price because it will mean that I get to sell you another car on the lot or ill give you wholesale as as trade but i'm prepared to talk on the price of the new car. None seem to do it. All they do is bitch and moan that the RRP is pretty well fixed because of internet pricing being so competitive. I like the idea of selling in a retail market and then buying at auction but i don't like auctions

You need to learn how to negotiate, or, if you are buying new, think about using a car broker.
 
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VS 5.0

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If you do have a trade as part of the purchase, don't focus on the trade in value.

The key is the changeover value....are you prepared to pay that ?
 

losh1971

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Be prepared to negotiate over 3 - 4 days. When I bought the wife's car I kept the bloke hanging for 4 - 5 days, back and forth until I was happy with the price. Look at the Redbook trade in price to work out roughly what it cost them.
 

figjam

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I won’t get involved with back and forth with salespeople, nor give them any info if they follow up asking if I have made a decision.
I do my research and money maths, decide on a change-over figure which I won’t disclose, and work on that.
The number of times I have not been able to get an agreeable price within a short period …….. with their story “Get the best price from another dealer, and we will better it.” Nuh.
Make it known that when you walk out without a deal, you don’t come back. If you don't get that car you are in love with now, there will be another, somewhere, later. ( Sorta like women, if you are single. )

But do recognise that they are running a business and need to make a profit.
 
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