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Bad Lieutenant
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Discussion Starter · #1 ·
I've got a simple question regarding my trade in value and ordering a BMW that will take approximately 8 weeks.

If what I owe on my current vehicle is $X,XXX, and 8 weeks = 2 more payments, does the dealership calculate what is owed at the time of ordering the new vehicle or what is owed after the next 2 payments?

Just curious as I have an appointment next weekend to discuss some ordering options and using my current vehicle as a trade-in.

Thanks in advance.
 

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Chairman of the Bored
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What you owe is not the issue, what you have to worry about is the amount they will pay for your car. What a dealer does is ask the used car manager how much he will pay for your car and what they offer in trade may be that number or a lower amount. And the used car guy won't quote a high number either. So you need to try and figure out what your car is worth wholesale. You could ask for a Manheim report on this forum or find a couple of used car dealers in your area and ask them how much they would pay for your car, Carmax is a good start. I don't blame car dealers one bit but they will try and steal your trade and then make as much as possible on the new car. The dealer is trying to make money and your job is to make sure they don't make too much.
 

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Bad Lieutenant
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Discussion Starter · #4 ·
Thanks guys, that all makes sense and I was just curious if it was even taken into consideration when you're not driving a car off the lot for 8-12 weeks.
 

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BMW
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They will provide you a trade in value based on the day they are looking at the vehicle. Then give you an estimated trade in value for your car 8 weeks from now. Your vehicle of course must be in the same condition.

A 10 day payoff will be attained when you are signing the purchase contracts on delivery day.
 

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Also, make sure you don't tell them you are trading in a vehicle until after you've negotiated a sales price, fees, etc.
this is the last thing you want to do when you are ordering a car. make sure you and the dealer are on the same page so there are no surprises once your car comes in and you are finalizing the deal. if you drop a trade at the last second that could blow the whole deal. not worth the hassle, be upfront from the get-go.
 

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this is the last thing you want to do when you are ordering a car. make sure you and the dealer are on the same page so there are no surprises once your car comes in and you are finalizing the deal. if you drop a trade at the last second that could blow the whole deal. not worth the hassle, be upfront from the get-go.
Umm, I don't know about you, but I like to settle on a price BEFORE the dealer orders the car. There are no surprises, I always agree on the sales price of the car before letting the dealer know how I intend to finance the vehicle - loan, lease, cash + trade-in whatever.

BTW, I believe you work at a dealership so you might want to be upfront about that.
 

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Bad Lieutenant
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Discussion Starter · #8 ·
Umm, I don't know about you, but I like to settle on a price BEFORE the dealer orders the car. There are no surprises, I always agree on the sales price of the car before letting the dealer know how I intend to finance the vehicle - loan, lease, cash + trade-in whatever.
I completely agree, I intend to discuss the price and any incentives and special rates beforehand. From what I'm told, this dealership is held in high regard when it comes to fairness and customer service.
 

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I do my deals this way:
1. consider just the car I want first--configure with options, what's the bottomline price for the car?
2. method of payment--do I get a discount for paying cash? financing? leasing? what would the rates be for whatever method of payment I'm considering?

once 1 and 2 are completely resolved, and I get an itemization of all additional costs--TTL, dealer fees, BS fees, etc, then we move on to trade-in. I make it clear (and I mean it) that my trade is a separate transaction--certainly I'll consider any offer they'd like to make for my trade, but chances are I'll sell it on my own.

If I were ordering, I'd have EVERYTHING documented, down to the last penny, including all fees, before signing off or leaving a deposit. If I were trading, I'd have the trade-in price documented as well as the vehicle's current condition if there is anything significant--ie that big dent on the right rear quarter panel--as well as the mileage on the trade vehicle. Only then would I sign off and leave a deposit. But you need to be aware that the dealer has the right to reappraise your trade when you take delivery, and potentially re-value it, and honestly, that is quite fair. What if your engine blew in the meanwhile, or you got a big dent in the hood, or you put 10K more miles on it from your last cross-country trip? You could, if you wanted, put an escape clause in your sales order that if the value of the trade changes more than $x, you have the right to walk (I haven't tried this but it makes sense, and x can certainly be zero--ie any price change on the trade and the deal is off).

As far as car payments and payoff, that's absolutely irrelevant to your trade's value, it only affects how much you finance and how big your check needs to be. If continuing to make car payments is a concern to you, then buy off the lot and conclude the transaction immediately.

Now--if you are upside down on the car you are considering trading, you should re-think trading it at all. Sure, the dealership will pay off your car at trade-in, but--they'll add your negative equity to the amount you are financing on the new car, which makes you even more upside down on your new car than usual. Doing this consistently can get you into major financial trouble! There's a thread in the 3'er topics about a fester who is in this position--has a lease with about $5K negative equity from her last car so the payments are really high, her income has been cut and she's having trouble making the payments, but becaue the payments are so high she's in a dreadful position to get anyone to assume her lease. If that's your situation with negative equity, then you are much smarter to postpone the new car until the old is at least paid off, or can be paid off with sale/trade-in proceeds.
 

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Bad Lieutenant
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Discussion Starter · #10 ·
edoran, I like your idea of the escape clause, that makes sense and yes, I did read that woman on the fest, but sounded like she was overextended to begin with, regardless of her negative equity.
 
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