Trade in:

How much should I expect to lose (car's real value) if I trade in my '03 CL type S say in two years?

Also, if your car isn't fully paid off, how does the trade in work?

Is it the best value to keep your car for years and years til it dies?

Pay off:

Should I try to pay off my car in the least amount of time if I'm planning to trade it in in 2 to 3 years?


THANKS!

 

Better to lease a car if you are planning to get rid of it in 2-3 years. Its always better to pay off your loan faster to save on interest.

 

Always keep a car as long as you are happy with it! My 1971 lasted until I got my 1986 which lasted until I got my 2001. My wife's 1990 was just replaced with a 2003. Always buy something that will both last AND keep you happy. You will come out many $$$ ahead!
Dan

 

bunnie,

First, you should NEVER trade in a 2 year old car....if you want to sell it, then sell it privately.

Just look at my case....I have a 1999 Audi A6....According to Kelly Blue Book and Edmunds, the retail value on the car is around $17,000 (what a dealer would put that car up for on the lot....they won't get that much, but that would be their starting number). The actual Private Sale value is about $14,700 (what the car is selling for in private sales). A couple of dealers wanted to give me between $7500 and $9000 for it in trade in!!!

I'm selling privately, of course.

Second, if you only see yourself in a car for about 2 years, you should consider leasing instead of purchasing unless you put a lot of miles on the car (over 15,000 per year). With a lease, you are basically paying the depreciation value of the car for that time period. If the price of the car was $30,000, and it two years it was worth $21,000, then you would pay the $9000 over the 2 years, plus whatever finance charges they put on. In my example, your car payment would probably be something like $400/month after finance charges, and you would just turn it in in two years and get a new car.

Expect that the car will drop in value about 20% just for driving out the door (a $30,000 car will be worth about $24,000 just for driving it off the lot). Each year, expect another 10% off of that...so in two years, the car would be worth about $21,600, in 3 years, $19,440,....etc. And that is the RETAIL value...if you try to trade it, you may find that the dealers are giving below wholesale value and you may get an offer of $16,000 or $17,000 for a trade in of a two year old $30,000 car. Also, expect much less if you have alot of miles on it (more than an average of 15,000 per year)

 

I have a simple rule of thumb. First go to either www.edmunds.com or www.kelleybluebook.com and determine the value of your car by answering a few questions. This is free.

Go to the dealer and negociate your best deal WITHOUT a trade in. See how much the dealer is willing to give you off the MSRP. Now you can spring it on him. Ask how much WITH your trade. Show him your nicely detailed car. Here's what will happen:

Example: 1. You can buy a new CL with $2000. off the MSRP.

Example: 2. You trade in your car that you know is worth $10,000. (on a trade), because you checked with Edmunds. Now the dealer tells you that you can buy the CL for $10,000 off MSRP WITH your trade. He is only giving you $8000. because you could buy it for $2000. off the MSRP with the trade. Get it. Nice trick, huh? You always do better selling it privately. It's just a hassle.

Here is where sharp negociation comes in. The dealer will try give you the "apples and oranges" line. Do not listen. When push comes to shove...stand up and say, "I guess we don't have a deal." Watch 'em squirm.

 

To add to Pappy's example 2:

Don't even worry about how much a new car price is with a trade....get the price of the new car down to the price you want to pay ($2000 off of the sticker, $3000 off of the sticker, or whatever). If they ask ahead of time if you will be trading in, tell them "No", or "I don't know right now....I want to negotiate the price of the car I am going to purchase first, then decide what is the best way to sell my current car".

Once you get the new car down to the price you want, then ask "Ok...if I trade in my car, how much will you give me for my current car?"....they will have to give you a real number since you've already gotten the new car to the price you want and they can't fiddle with the numbers to make the trade in value look better. I can guarantee that the number they give is way less than you could get selling yourself.

Remember....trading in an old car is a totally SEPARATE transaction from buying a new car.....and you should negotiate each transaction separately then force the dealer to keep the numbers totally separate....the dealers like to try to make it look like one transaction so they can bury their crap trade in value into BS numbers to make it look better than it is.

 

This is a good rule.

 

New cars are the worst investment.... they do nothing but depreciate...


As for what an 03 is worth in 07. I would say so much is on the mileage and condition. If the model is discountinued... it can impact price. If it was in an accident etc.

The dealers will always tell you that edmunds favors the consumer... They want to make more on the used car then they do on the new car. I usually go in with an idea of what they car is worth wholesale and the fact that they tpically want to make at least 500 over invoice. This translates to about 2000 off the sticker of a TL.

Recently I went into a dealership and they were willing to have me pay 500 over invoice, but they wanted me to take 8000 in trade on my 01 CL S. Yes it had been in a sersious accident but as they say if it is repaired properly it is as good as new. ahem..

In the end they do know what they are doing and it is best to trade a car in that has less than 50K since they can certify the car and acura will pay for it under warranty.

If you seem too anxious to buy the car, they will probably hold off. I have had more times where they called me the next day and I had to tell them well I did they deal maybe in a few years you can have my business. They might change their minds, but they will not give you top dollar for your trade and take thousands off the new car.

Best to make a deal without a trade and then run the car to the ground and then buy another one.

I go rid of my CL because of the tranny issues etc.

 

Ancient thread warning 05-26-2003 08:43 PM