Zeus69

iTrader: (1)

If I go through with a purchase on an IS 350 soon, I will likely be trading in my current car. I'm negotiating the selling price of the IS (we're close), but I haven't discussed the trade-in yet (I wanted to keep it as a separate transaction).

Presently I am driving a 2006 VW Passat 3.6L 4-Motion (Luxury Pkg, Premium Audio). As an exercise, I configured it on several used car pricing sites. I detailed mileage, options, condition (checked “good”, even though my car is “excellent”) and local zip code of the dealership. I understand that these online calculators are only a rough guide because there are too many factors to consider for each year, make and model. Time and location are also factors. My results showed the following:

• Black Book Online (from Lexus dealer website): $18,560 - $22,370
• Edmunds.com: $25,244
• Kelley Blue Book: $22,050
• NADA Guides: $24,775

Pretty wide range. Obviously, if the dealer offers 18K, the negotiation is DOA. But $25K is an unrealistic expectation on my end. I was thinking no less than $22,500 would be a fair representation of the car's wholesale value. What do other's think??

Recluse

I've always traded in my old car (selling it yourself is a PITA), and found that most dealers will give at least "Good" value without too much trouble, and that they tend to use KBB to justify their numbers. But YMMV.

In your case, knowing only what you posted here, I personally don't think that $22,500 is an unreasonable expectation. Then again, there's nothing preventing the dealer from totally lowballing you, either.

Good luck.

inwood

iTrader: (1)

If you have a carmax in your area try selling it to them. They offer the best deals when it comes to purchasing used cars. I sold my previous car to them for 10k when the highest anyone else would offer for a trade-in was 8k.

inxexisten

expect a few grand (2-4) less than the kelly blue book

alexc233

i traded my truck in for the exact trade in "excellent" value off of kbb so i would try getting that price for it whatever it is - should definelty be able to get 23K+ though

Zanorath

Depends... when I was getting my IS350 I was thinking I would get book value for my '01 eclipse, didn't happen. Flawless car (except for minor hood chips, which my 350 of 18 months has more of now...), booked at $8200, They walked me at the first dealership offering me no more than $3500. 2nd dealership negotiated pretty much exactly the same and wouldn't budge, so I ended up pulling my trade from the deal and selling it private party for $1000 over the PP book rate. I guess the Lexus reasoning was that they would only give wholesale value because they doubted it would sell on their lot. Might have been bs, might have been true, but if they lowball your car I'd sell private party personally.

fdelement

iTrader: (1)

what i did was i pretty much finalized the price of my new IS350 and then tell them I want to trade my old car in before i buy the new one. they will tend to be more flexible with the trade-in value since they want you to buy their new car. I ended up selling my old car ~1k higher than KBB private seller price.

IS350jet

Expect to get slightly less than wholesale after negotiating. The typical advice is to negotiate your trade separate from the purchase but good luck with that one. The Salesman will have to configure your trade on the 4 square (a negotiation worksheet designed to create smoke and mirrors during negotiations). It's most dealers policy that if you don't want to negotiate with a 4 square, they won't sell you a car. They have to have the 4 square in every deal.
Read this.

http://www.edmunds.com/advice/buying...2/article.html

It's lengthy but for anyone buying a new or used car this information is invaluable. I found it very educational as well as quite shocking.

Koz

If you trade-in, you will get hosed!

Koz

Zeus69

iTrader: (1)

You are apparently correct. The offer I got was around $4500 less than what I considered fair based on multiple online used car wholesale calculators. I'm not in the mood for a drawn out, dig my heels in negotiation so I'll probably stay in my current ride for the time being.

tex2670

If you look on the lot and see what kind of used cars they are selling, this will give you some insight. You'd do better if they were going to sell it them selves. But, probably, they'll just sell it to a wholesaler, and they will give you what the wholesaler gives them, especially if you have extracted every nickel out of them already on your purchase.

Zeus69

iTrader: (1)

Wow, what a read... Seems to be a battle of attrition in many cases. Pretty amazing how so many on this forum have gotten such big discounts off MSRP. I guess the same thing that drives them to gather here makes them tough and educated negotiaters .

What I believe is in my favor is the lack of urgency in making this deal happen right now. Timing as it is, I'd think the dealer would be willing to work with me quite a bit. It's end of year so who knows how badly they want to move the car. Also, the car comes with 18s and summer tires so you can figure any buyer, if staying locally, needs to add a winter wheel/tire package to the mental cost inventory. May be a deterrent for some. Who knows how many parallel discussions they are having with others about this car.

So sure, they have the car I like, but I'm not about to get fleeced while trying to acquire it. Should be interesting.

Bichon

The dealers around here all use Galves http://www.galves.com/, a company that bases their values on what cars are selling for at wholesale auctions. I'll bet that's what the dealer used to price your trade.

If you are in no hurry and have a late model car in excellent condition, why not sell it yourself?

Joeb427

iTrader: (1)

Correct and Galves is low....

Zeus69

iTrader: (1)

Was considering the PITA factor and the sales tax advantages for a trade in. But you're right, should probably go this route. The dealer said they want to make a deal that would be "worth my while" so they could sell before year's end (dealer speak?). Obviously, what is worth my while and theirs seem quite far apart for now.

The timing would also have to align if I sell on my own. How would that work? Hammer down a definite sales price for the IS while simultaneously posting my car on Autotrader? If I get the price on the new car but my used one gets no bites (no idea what the used car market is doing these days), then I could be stuck "owning" two cars at the same time. If I sell my used one quickly and dealer plays hardball, then MY urgency for a new car goes up and any leverage is out the window. Maybe I'm making this more confusing then it ought to be. I'll let the dust settle for a day or two and revisit things...