magixpuma

Ok, considiring im only 16 please dont flame me If i purchase this car now and say they come out with a rx7 in 09 and i would like it better.... well the point is can u explain how dealers do trade ins. Is it they offer you a price for your car lets say 20 and the rx7 is 30 you just pay the diff which is 10. Thanks for any info

Ajax

i'll trade in my 8 assuming it's not already faster than the 7.

magixpuma

Are you joking you didnt even attempt to answer my q"

Mistryl

Basically, you've got it. There are some details such as mileage and what not....the best way to ensure that you're not screwed over is to simplify things as much as possible...that is, you only haggle on the remaining difference that you have to pay. Salespeople love to confuse customers on varying details such as finance, down payments, trade-ins, etc.

magixpuma

could u go into alittle more detail on those last things u were going into

w2aew

You basically have it. However, you need to be aware that the value that the dealer will give you on trade-in is almost always less than what you could get in a private sale. This is because they (the dealer) will have to do some prep to re-sell the car at a profit, or will just wholesale it. So, they're going to give you a lower price so that they don't loose money on it in their next transaction with it. The dealer will "try" to make you believe that he's giving you more for the car, when in reality he's probably taking it off of the price of the new car (which you will get anyway with proper negotiation).

So, if you find yourself wanting to trade-in a car, strongly consider selling it on your own.

Of course, if you are leasing.... ....that's a different story.

Ajax

wow.. i didnt.. i missed a whole line in there. I guess i should pay more attention to this and stop watching TV, lol.

Anyway, dealers give you the value of your trade in based on what the market is willing to pay for your car. Every car's value depreciates with age and with mileage/damage and condition. There is normal wear on a vehicle and abnormal wear. The amount of wear you have on your vehicle will also partially determine the value.

Furthermore, you have to worry about modifications and warranty. If you have heavily modified a car, you're better off selling it to an individual than a dealership because a dealership will not want to warrant aftermarket work while an individual will pay for custom aftermarket work.

Here's what a dealer will do tho: They'll take the blue book value of the car, and then they'll "fairly" evaluate the condition of the vehicle, check the title and see if there were any accidents in the history of the car and then lowball you an offer.

You negotiate with them what you're willing to accept, what you know you can get and what you think they should give you. If you think your car is in great condition and has reasonable mileage for its' age, you should be able to get blue book or better for it, but dealers will hardly ever offer that.

rx8ntexas

My advice to you my young friend would be to do everything you can do to pay off your 8 in 3 years...by that time the 7 should here or at least very close to being here...then you (or your parents) can buy the 7 and you'll have two rotary monsters in your garage...like me ...and hopefully in a few years I'll have 3....hmmmmm....need another garage though :D

magixpuma

k thanks for all your info i appreciate it

magixpuma

and also i have basically enough money to pay the car off now
since My neighbor is cheif of police and his childhood friend owns a dealership he says he can get me the 8 for around 20 But ill believ that when it happens.

5Gen_Prelude

I don't if this applies to you in the States, but in Canada the TAXES are calculated on the DIFFERENCE between the trade-in and the new car. Specifically where I am, it's 14.5% in taxes, which means that on a $40000 car, I end up paying the government $5800 in taxes alone. If I have a $20000 trade-in, I would save $2900 in taxes. So unless I can get an additional $2900 from a private sale, it's better for me to get the trade-in.

Food for thought.

DOMINION

Well all this and a baseball bat should help you out but here go. Things a dealer/bank looks for.

1. How good is your credit? Well lets see; Good - Its ok - Bad. Let me brake that down for ya. Good credit = Got good credit then go get a new and or used car with no co-singer and no down.
Its ok = Have accounts that are in good standing or still open meaning you pay them on time and at the same time you have some that are closed (you never paid them).
Bad = All accounts are in derogatory status. You never paid your bills on time or at all and till this day have not paid them.

2. What is your trade in value?. IE: Miles, needs work under the hood ect. Some dealers will go by the KBB and some will not. The dealer will never give you what your car is valued at so it may be best to sell your car on your own and use the money as a down payment. Good luck.

3. What can you afford to pay a month? generally your car payment is $200. to every $10K. IE: RX-8 is $30K an up = car payment of $600. a month. Once more depending on your credit and how much you put down.

4. How much can you put down? One dollar JK. This will not help you out in the long run it just looks good for the banks just like a trade in + a down payment. That only looks good on paper. So try to put down as little as possible. The only way this will help you is if you buy the car cash.

When I was 18 I had a 97 Chevy Corsica. Me and my Mom got that for $8,000 with $3,000 down. When I was 22 I traded that in with 78K miles in good shape. They gave me $4,000 for it and I put $2,500. down and got a 2000 Mitsubishi Eclipse GS with 24K-miles for $16K no co-signer just me it was all mine. But we had to work the bank. The bank put a "cap" on me so they gave me the KBB value on paper + my down. That put the Mitsu well under my "cap" allowing me to purchase the car. I paid $380. a month for that 4banger till it hit 75K-miles. Then I went to Mazda and got my 8 at the age of 23. I traded in the Eclipse and put $2,000. down for $30K car that I now pay $700. a month for. Now keep in mind that everytime I did a trade in the dealer(s) had to buy that loan due to the fact that the car(s) where not payed off ( I still owned money on them). So on my credit score the Chevy and the Mitsu show as payed off. That’s how it worked for lill O' me in the desert all by my lill O' self sniff sniff. But I love my RX-8 and will re-finance very soon.

mjd

Just make sure you do your homework ahead of time. Use kbb to get the value of your trade, and the invoice of the car you want. Dealers hate it when you come in prepared.

Hell, I walked in to several dealers with a folder full of my info and an "I'm not here to f*ck around" attitude and got my 8 for $500 under invoice plus blue book value for my trade. It was also obvious to me that I knew much more about the 8 than the salesman did. I think that also helped some. Just know your stuff and be passionate about the car you wish to purchase. You should be able to get a deal you're satisfied with.

bwayout

Also try the library, there are a lot of good books on how to buy, lease or trade-in your car.

Also check out the special auto issues of Consumer Reports (if you can't find tit an a good book store, try the library or go in line (some of it's free, some of it you'll need to subscribe and become a paid member) ...

http://www.consumerreports.org/main/...fkiKaX5cxbJLvu|4410780729535248991/169937909/6/7005/7005/7002/7002/7005/-1|-4094612141872770228/169937910/6/7005/7005/7002/7002/7005/-1&CONTENT%3C%3Ecnt_id=25035&FOLDER%3C%3Efolder_id= 333137&ASSORTMENT%3C%3East_id=333137&bmUID=1089162 065792&bhfv=7&bhqs=1

... here's what the have on the RX-8

http://www.consumerreports.org/main/...=1089162211507
... and for free, there is also edmunds.com for lots of info:

http://www.edmunds.com/advice/

http://www.edmunds.com/advice/strate...ialreports.2.*

This is also good to check out to learn about Dealer holdback charges

http://www.edmunds.com/advice/incent...ack/index.html

Good luck!

bwayout

Nice job! An RX-8 for $500 under invoice - Good for you!

:D

I 've always felt that getting a non-american car at $100 over invoice was a fantastic deal (Good for me and some profit to the dealer) Sadly, I was only able to get my old 1990 Probe that way (at the time they were very hot cars and hard to get and the dealers were asking around $5,000 over MSRP- I did it through a auto broker in L.A.). But here in Dallas, for our 2000 Passat and 2003 mp5, I was only able to do $250 over invoice...

mjd

bwayout...

I do think I got a very good deal on my 8. But part of the reason may be due to the fact that I live in Wisconsin and bought my 8 during winter (February). Not exactly the time that sports cars are flying off lots. Between every dealer I visited, I pretty much could have picked an 8 right off the lot in any color/options combo imaginable.

bowman

14.5%....OMG!

And I complain about the 6% we have to pay.

And BTW, in MO you pay sales tax on the difference between your trade-in and new car.

bwayout

mjd,

I'm happy for you – but sad for me, because when I got both our Passat and my mp5, it was at the end of February – but here in Texas, we don't get a lot of snow!

Note to magixpuma:

February is a good time to buy, especially at month's end because the dealer wants to help their sales numbers... and it's true that most people don't buy during the winter.



Well, in a couple of years when I get my RX-8, I know what I should be paying for it!

:D

Big_ton

kbb sucks
admunds better

Big_ton

mjd
i am going school in Madison
how much did you pay for the 8?

DOMINION

Oh yea its good to go at the end of the month when they are about to close the books.