P/X ing higher value cars

[1ofaKind]

Hi All,

I'm currently looking to swap my 350z roadster to a larger more practile vehicle (my circumstances have changed and I've scratched my sporty car itch). I'm looking at a couple of cars (330i M sport touring - 27k, and a 08 A4 Avant Sline Quattro 2.0Turbo - 28k). I like the new Mondeo (fully loaded retail is 28k :O but I wouldn't expect to pay that).

The question is whilst a focus sized estate would be fine I'm guessing I need to trade up to do a deal on a car or do you think they just won't even want the car as a p/x or just try to have my pants down on the value (even more than normal).

Cheers

 

[Dandle]

They will do you a part ex but it wont be in your favour. If the price they offer you for the 350z is good then they are making a larger chunk on the car they are selling you. The only cars most dealers can offer slightly better part ex on is own brand vehicles as they dont have the hassle of outing it to another dealer.

 

[Maz]

They will do you a part ex but it wont be in your favour. If the price they offer you for the 350z is good then they are making a larger chunk on the car they are selling you. The only cars most dealers can offer slightly better part ex on is own brand vehicles as they dont have the hassle of outing it to another dealer.

Rubbish.

Go to a decent reputable dealer, they will ring a dealer who will retail your car (If it's main dealer stock they will ring a main dealer, if it's back street garage stock they will ring a back street garage).

They will ask them for a value on your car, and then you work from there.

Say for example your car is worth £20k car you want to buy is £15k, but you want to pay £14.5k for it you'd want £5.5k back.

Sometimes the dealer will use profit in their car to dress your part ex up to do a deal ie; you car is valued at £16k you're looking at car worth £20k dealer might offer you £17k using some profit in their car.

It all depends on the amount of profit they need to retain in the car, but they can use that to either discount or overallow on px.

 

[Dandle]

No dealer is going to take a part ex in dearer than what hes selling you and give you good money back(Car dealing is about getting money in not giving it back). Thats not even taking into account the fact that most car owners expect their car to be worth more than a dealer would value it in the first place as they will only look at the trade values. They will then work out a figure with the new cars profit.

We part exed our Audi(cost £27k in Mar06 with 8% off list) in with BMW getting about 15 valuations from various dealers up to about 70 miles away, they all came back with a part ex figure of 17.5-18.5k. With the Audi going straight back into an Audi main dealer for sale due to its age. The best deal I could get was my BMW for £33.5k(down from 35) and 18k for the Audi. A few weeks later the Audi was up for sale on the Audi website at £22.5k and sold in a week. Now you would think with that profit margin they would have paid more for the Audi(keeping in mind how many dealers we visited, someone must have wanted a sale) but they didnt and werent interested at all, basically because they didnt have too be.

 

[jamoor]

No dealer is going to take a part ex in dearer than what hes selling you and give you good money back(Car dealing is about getting money in not giving it back). Thats not even taking into account the fact that most car owners expect their car to be worth more than a dealer would value it in the first place as they will only look at the trade values. They will then work out a figure with the new cars profit.

We part exed our Audi(cost £27k in Mar06 with 8% off list) in with BMW getting about 15 valuations from various dealers up to about 70 miles away, they all came back with a part ex figure of 17.5-18.5k. With the Audi going straight back into an Audi main dealer for sale due to its age. The best deal I could get was my BMW for £33.5k(down from 35) and 18k for the Audi. A few weeks later the Audi was up for sale on the Audi website at £22.5k and sold in a week. Now you would think with that profit margin they would have paid more for the Audi(keeping in mind how many dealers we visited, someone must have wanted a sale) but they didnt and werent interested at all, basically because they didnt have too be.

What are you on?

Part ex worth 20k
The car hes interested in - 15k
Cost of the car he's interested in to the dealer - lets say £12.5k

Dealer sells the 20k car to another dealer for 20k (that's 20k cash in his hand)

take away the cost of the car, 20k-12.5k = 7.5k
Gives the customer 5k because of the difference in part ex
7.5k-5k = 2.5k, that's 2.5k profit!

I admit, they won't give you a terrific part ex, though.

Sell the carprivately, cant be too hard to shift?

 

[Dandle]

What are you on?

Part ex worth 20k
The car hes interested in - 15k
Cost of the car he's interested in to the dealer - lets say £12.5k

Dealer sells the 20k car to another dealer for 20k (that's 20k cash in his hand)

take away the cost of the car, 20k-12.5k = 7.5k
Gives the customer 5k because of the difference in part ex
7.5k-5k = 2.5k, that's 2.5k profit!

I admit, they won't give you a terrific part ex, though.

Sell the carprivately, cant be too hard to shift?

What im saying is the if the cars worth 20k privately then the dealer is going to look at it being worth trade at maybe 16k especially if they has to out it to another dealer network. Your no looking at another car worth 15k(12.5 to that dealer) hes going to give you the difference and maybe a few quid more but your not going to drive away with 5k in your pocket. It all depends on how much profit is in said cars but dealers are there to make money and you will be much better off with a private sale and haggling with cash on the new one.

 

[Maz]

No dealer is going to take a part ex in dearer than what hes selling you and give you good money back(Car dealing is about getting money in not giving it back). Thats not even taking into account the fact that most car owners expect their car to be worth more than a dealer would value it in the first place as they will only look at the trade values. They will then work out a figure with the new cars profit.

We part exed our Audi(cost £27k in Mar06 with 8% off list) in with BMW getting about 15 valuations from various dealers up to about 70 miles away, they all came back with a part ex figure of 17.5-18.5k. With the Audi going straight back into an Audi main dealer for sale due to its age. The best deal I could get was my BMW for £33.5k(down from 35) and 18k for the Audi. A few weeks later the Audi was up for sale on the Audi website at £22.5k and sold in a week. Now you would think with that profit margin they would have paid more for the Audi(keeping in mind how many dealers we visited, someone must have wanted a sale) but they didnt and werent interested at all, basically because they didnt have too be.

I'm sorry Dandle, you might buy a car maybe once every 2 - 3 years?

I sell these everyday, I do part ex valuations everyday, I price up new and used cars everyday.

Part Ex price boils down to 2 things.

SIV - Stand in value, and over allowance - which in the case of no part ex would equate to discount.

Most reputable dealers will get their SIV from either a main dealer or a company who will sell this particular car as their prime stock.

 

[Maz]

What im saying is the if the cars worth 20k privately then the dealer is going to look at it being worth trade at maybe 16k especially if they has to out it to another dealer network. Your no looking at another car worth 15k(12.5 to that dealer) hes going to give you the difference and maybe a few quid more but your not going to drive away with 5k in your pocket. It all depends on how much profit is in said cars but dealers are there to make money and you will be much better off with a private sale and haggling with cash on the new one.

I think you missed the whole point of trading in a car, whilst you visited those 15 dealerships to get a px price.

OF BLOODY COURSE they're gonna offer you trade price, they're not gonna give you retail money for a car they want to sell on.

 

[Dandle]

I think you missed the whole point of trading in a car, whilst you visited those 15 dealerships to get a px price.

OF BLOODY COURSE they're gonna offer you trade price, they're not gonna give you retail money for a car they want to sell on.

The dealers I visited did use their regular Audi branches to get prices on our car. Obviously only prices they would pay for it though.

Please keep in mind this is only my opinion. Taking a more expensive car in and getting trade for it then getting a discount on a cheaper car plus cash back isnt sound financialy and you will get shafted and that was what the OP asked.

 

[Maz]

The dealers I visited did use their regular Audi branches to get prices on our car. Obviously only prices they would pay for it though.

Please keep in mind this is only my opinion. Taking a more expensive car in and getting trade for it then getting a discount on a cheaper car plus cash back isnt sound financialy and you will get shafted and that was what the OP asked.

I can't see how it's any different to pxing a lower price px.

You're still getting trade price for your part ex.

 

[Wicksta]

I can't see how it's any different to pxing a lower price px.

You're still getting trade price for your part ex.

Generally in my own personal experience if you're trading in a lower priced car there is more room for negotiation in both the price of the car you are buying and the car you are trading in. Funnily enough when I bought my old 325Ci it had been traded in with a 350Z, he had (judging by the sales receipt left in my paperwork) had his pants pulled down with the trade in value and had paid top whack for the 325Ci. I only got it 6 months later and it had fallen from 18,500 to 15,000 between August 2005 and Feb 2006 although I negotiated the price and got a great deal on our old Golf.

I guess part of the problem is that trading in a higher priced car tells the salesman you're a bit desperate to get rid of it.