Quote:
Originally Posted by Montana Man
There are a lot of factors that play into that percentage. I was at the dealer and asked what my truck was worth to them in trade. After they checked it out he said 42k and then proceeded to apologize for the low offer explaining how trade ins don't value as high as selling private party. I didn't show my exitement over that number but was very happy with it. Having paid 59k out the door five years ago, it is holding value well.
I don't know but a new Cummins with over 1000 ft lbs torque is sounding better all the time.
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Totally agree that the Diesels hold their value far better than a gas model.
However, I would not trust ANYTHING a dealer tells you verbally. If your actually looking for a new truck or camper use this process:
- Determine the exact model and specs you want.
- DO NOT MENTION YOUR TRADE OR FINANCING WHEN YOU TALK TO DEALERS AT THE START!! DO NOT TELL THEM WHAT YOUR PRICE RANGE IS!!
- Use commodity bid process and get the best price "out the door" with all fees figured in from at least 4 dealers. Make sure the dealers understand that you are looking at that many vendors and across state lines! Play them off each other by telling them that the other ones are lower!! At this point you have all the power.
- Once you get the best base price THEN you talk about the trade value. DO NOT MENTION FINANCING YET! Batter the trade value back and forth between the dealers just like you did on the base pricing.
- Once you get the very best deal on base price and the trade in THEN negotiate financing and make sure you do so with several institutions.
- Do not allow the dealership you choose to add in any "extras" like extended warranties, dealer prep of delivery costs as part of the process. Most warranties are not worth half of what the cost its just another way the dealerships can make money on the deal as the warranty companies give them a percentage commission.
Salesmen at car dealerships are taught the "four corners" sales negotiation tactic on day one. The four corners are:
- Base price
- Trade in allowance
- Financing
- Add in's.
At each step of the process the dealership has the potential to make money. Using the above negotiating method to circumvent their tactics. Three more things:
- Do your research ahead of time and know what your trade in is worth (NADA) and also what the current market is for the make and model you are looking to buy.
- Keep in mind that the dealership will try to "adjust" your trade in if they have to drop the base price on the new unit. That's part two of how they can make money. Also be aware that if your underwater on the loan on your current vehicle they may offer to inflate the out the door price of the new unit to compensate for their loss. That is usually not a good idea since you will be even more underwater on the new one!
- DO NOT WALK INTO THE NEAREST DEALERSHIP AND THROW YOURSELF ON THEIR MERCY!!!! Those smiling faces and the BS mean NOTHING!!! Only what they put on paper.
Its a business transaction plain and simple, treat it as such. Your not there to make friends with anyone and trust me they are NOT your friends. Most importantly, remember that until you sign the bottom line you have all the power. You can walk out at any point. Be prepared to do so at any time the dealership is not willing to play ball on YOUR terms. Trust me nine times out of ten they will run out the door after you. Just make sure they understand you are dead serious about buying but that you will not negotiate on their terms.