Advice on getting best p/x value from dealer

HangTime

HangTime

HangTime

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We are looking to replace my wife's car and have pretty much decided on the model albeit flexible on trim level. As part of this I would prefer to trade in her current car as part exchange if we can get a sensible price for it.

Her car in theory is worth about £5500 trade in, this is based on CAP, Parkers and Autotrader valuations which range from ~£5300-5900. WBAC offered £5258 after a physical inspection so I don't think £5500 is an unreasonable ask.

However having visited two dealers that had suitable replacement cars neither would go above £5000 on the p/x, one was a bit more flexible on the price of their car which reduces the cost to switch (ultimately all I care about) but not quite down to the level I'm looking for. This surprised me a bit as cars of equal or inferior age/mileage/spec within 100 miles are advertised at £6500+ online so I thought they could a bit closer especially as it has main dealer FSH, MOT to March 2018, reasonable spec (Nav/Xenons/DAB/BT/Parking Sensors etc), tyres are fine, only minor cosmetic damage.

Now to be fair the cars we are looking at are priced competitively (hence why we went to look at them) so there may not be as much margin to eat into on that side of the deal but I didn't really see why they would let a buyer walk out over not being willing to offer a sensible price on the trade in, it wasn't like I was trying to get full market value, just something that didn't feel like we were being bent over. If they sent it to auction I don't think they would be losing much money on it.

Anyway the approach I have taken is to sit and wait to see if they get in contact and approach another dealer with an acceptable car in the meantime, in case they can do any better. Failing that perhaps at the end of the week assuming the cars haven't sold I will get back in contact to give them a final chance to do a deal before probably having to go down the route of private sale (it's worth around £6500 private supposedly so should be able to get say £6k). Selling privately will be a bit of a ballache (young child we can't leave home alone for a test drive, my commute home takes over 2hrs etc) hence why I haven't gone down that route straight away.

Maybe I've got it all wrong and the dealer really can't offer much more than £5k without taking a hit due to admin fees disposing at auction but it doesn't smell right to me. The way I look at it, due to the difference in age and price their car must be depreciating faster sat on the forecourt than ours is on the road so I just don't get why they are prepared to lose a customer looking for something approaching a 'fair' deal rather than a bargain.
 
The crazy thing is WBAC sell their cars to dealers, so you would think the dealers would at least match if not beat WBAC, but sadly this isnt always the case. I've had more luck with main dealers on trade in prices, but little independents you've got no chance basically.
 
They were franchised manufacturer dealerships. Going to try a different one (in Basingstoke as it happens!) tomorrow.
I get the fact that the dealers probably don't want our car as it is from a different marque and a few years old, but they should have all the supply chain in place to shift it and therefore I would expect them to be able to offer a break-even price to secure the sale of their car.

The last time I did a p/x it seemed to go a lot smoother in terms of them starting low but after a few trips to 'speak with the manager' and me giving them a final price ultimatum to seal the deal on the day, we reached an acceptable price to switch. This time around one dealer wouldn't budge from 5000 and the other started at 4800 and would only go up to 5000. If the third dealer tops out around that level I may just have to bite the bullet and attempt a private sale; it is a shame as we would have preferred to have the new car for a holiday over the BH weekend.
 
I'm sure someone mentioned to me once about checking Evans Halshaw for p/x values as they're supposed to be competitive - worth a go?
 
There is no silver bullet. You are never going to get the best price trading in a car and in my experience you are always low balled on the price of your car. You have to start from a standpoint of pain reduction when you consider a trade in and that comes with a price. Focus on the cost to change, which is the trade in and the discount off the car you are buying, that should be your important metric of what makes a good deal. So what if dealer A offers you 300 more for your trade in if their ticket price is 400 more, focus on the those 2 elements together.

Also negotiate hard. If you have seen a car you want, are happy to buy and willing to sign there and then, be tough. Tell the dealer exactly that.

"If you give me X for my car, make Y the price for this car then I will sign right now". That is the discussion that will get you the best deal most times and if they can't do what you ask, walk and find a dealer who can, assuming it's not a stupid deal you are looking for. Dealers will get to a much quicker decision, usually where you want if they are clear you'll buy and as said, if not, walk.
 
Remember that a lot of main dealers may well not sell your p/x directly but instead either send it to auction or sell it to another garage. If this is the case they will want some additional margin in it to cover this.

If the main dealer is selling the p/x on their own forecourt they will have a process in place of carrying out a number of checks, replacing or repairing damaged parts and applying a warranty to the vehicle. All of hear elements have a cost, plus they want their margin as well. Because they can't be sure what works will be needed until they own the car and have it in the workshop they need to allow for this in their offer.

There's often very little margin for a main dealer in selling a p/x so it's all about what they make in the new car they sell you.

As Housey says, focus on the cost to change in the deal as a whole, and if this doesn't add up for you then walk away.
 
I've pretty much done what's suggested - focused on the cost to change, gave them a final differential I was prepared to agree and said happy to pay deposit then and there. As he was going to 'see the manager' for the 3rd time I said we liked the car and were keen to a deal but he had to come back with something acceptable or there was no point us continuing the conversation, but they wouldn't go for it - the most I could get was £500 better than their initial offer and I think that is because they had some margin on their car and standard initial lowball offer to test me out.
Interestingly they have subsequently lowered the price on their car to a point only £139 away from the differential number I gave them, were I to accept their p/x offer. I don't profess to know a lot about the industry but presumably there must come a point where the difference between what the customer and dealer wants gets so small that they may as well do a deal to shift the stock and avoid further depreciation of their asset - although obviously you have to draw the line somewhere in terms of them achieving a margin.
[I suppose the natural thing is to ask me the same question, is it worth my hassle and potential time/cost of visiting other dealers for the sake of £139 but it isn't a massively special or rare car so happy to buy a different one from elsewhere if the price is sensible. I also don't like paying more than what I believe something is worth with the possible exception of 'unique'/social events etc]

To me it is quite believable that they will not sell my p/x directly (different make, 4yrs old 56k miles) but presumably this is factored into online valuations of p/x value i.e. averaged out and taking into consideration vehicle age and mileage.
 
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When I was trading in my 320cd for a 640d at non-BMW dealer I took my tablet with Autotrader loaded and captured the prices of similar examples to my 320cd available at the time. I was realistic as to what I expected for my trade-in but they low-balled me by a grand and they wouldn't budge on the buying price of the 640d. I said I'd buy the car but since their offer was crap I'd have to wait until I sold my existing car and no, I wouldn't be leaving a deposit, sell it if you can. The end of the month approached a week later and they called my back with an acceptable counter offer. Be savvy and show them as such!
 
I expect the low ball, by trading it in you are paying a convenience premium, I accept that but I've always kept a number in my head I wouldn't drop below. Based on not wanting to have my pants completely pulled down and affordability on the new car. I won't pay an extra grand or so because the dealer wont even get close to a fair price.
 
The WBAC is marginally short of the 5500 you expected, for lack of hassle Id be tempted to take it tbh.
Alternatively list it for 6k or w/e the going rate is on gumtree/PH/AT/Ebay and see how long it takes to sell?
 
~Divine~Wind~ said:
The WBAC is marginally short of the 5500 you expected, for lack of hassle Id be tempted to take it tbh.
Alternatively list it for 6k or w/e the going rate is on gumtree/PH/AT/Ebay and see how long it takes to sell?
Click to expand...

don't they all cost money to advertise on with the exception of gumtree? ebay also take fee's, etc. is it worth all that hassle for £100 in the end when you take all these advertising and selling costs into the equation?
 
Try Evans halshaw. Sold the wife's juke recently to them. Same process as wbac but the price was much better.

8080 start price at EH
7200 start price at WBAC

They will both knock stuff off for issues so no brainer. Got 7800 for it in the end.

The reason is that EH will retail the car if they want it, whereas wbac will take their profit before the dealer takes theirs.
 
New dealer offered £5350 so if a suitable discount can be negotiated on their vehicle will probably go with that. Unlike the other two it actually feels like we are in with a chance of coming up with something acceptable.
Dealer #1 whom we saw at the weekend also got back in contact today to 'see how we were getting on'. Still a bit baffled as to why they let me walk out of the showroom to start talking with other dealers when I was happy to sign a deal there and then if they came up with a sensible offer.

Tried an online valuation with EH last month and it was lower than WBAC, although WBAC valuation has subsequently dropped.

Regarding fees for private sale, AT really isn't that expensive IMO, costs about £60 for premium listing which lasts for 6 weeks and assuming there are enough buyers out there I'd expect to get at least £6k or something very close for it.
 
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