everyplace is hit of miss....but it never hurts to try

 

As long as the difference in what Carmax gives you is more than the sales tax advantage gained by having the dealer take your trade allowance off the price of the car.

So--if you'd get $10,000 for your trade, and sales tax was 8%, Carmax would have to give you $10,800 just for you to break even.

 

Look--if Carmax gives a decent price, you could even take it to your dealer and get them to match (or match, taking into account sales take savings).

 

He's right on... you don't have to pay tax on the trade in value.

Also, don't forget, the price of your trade in is NEGOTIABLE! When I went to trade in my 99 Accord Coupe, the dealer first offered me $3600 for it! I told them to get lost... I actually left the dealership, went to CarMax, got an appraisal from them ($6500) brought it back to my Lexus dealer and they beat CarMax's price and paid me $6800 for my trade in.

 

True, but every added complication of the deal hurts you - sure you can negotiate the trade-in but then your negotiating 2 deals at one - the trade in and the new car. To get a good deal on the trade, they'll hose you on the new car! You'll always get the best price on the new car if you just go in there to buy with no complications.

If you don't want to sell the car yourself, take it to CarMax, get their price, and then go to the dealer, negotiate the best price on the IS and then ask them what they'll give you in trade for yours. It'll be less than the CarMax price!

 

I negotiated my trade in for 3k over what they wanted to originally give me(basically making it near the blue book value, so it was better than selling it privately and having to deal with everything) and got 500 over invoice for the IS350...it was totally hassle free...took like 3 minutes to negotiate a trade in price and 500 over invoice was already done on the phone prior to arriving and even that on the phone took like 30 seconds... Socal dealerships easily give pretty good deals...

 

Don't take this the wrong way, but I'd like to see your deal. It's amazing how sales people can "rip your face off" (sales speak for gouging a customer) and yet, the customer walks away thinking they got a great deal. I'm not saying you got a bad deal, but I doubt you actually got 500 bucks over invoice *and* full blue book for your trade. Sure, the salesperson made it look like that on the 4-square and it sure looked believable but if you have no idea how these guys work, you would be amazed. Then again, maybe you know somebody in the biz, maybe your Dad is the GM, who knows.
I posted an article earlier in this thread called "Confessions of a Car Salesman" It is, without a doubt, the best material you can read about negotiating a new or used car purchase. You'll find out how the salesperson made you think you got a great deal, even when you didn't. It's all there. The inner workings of the salesperson mentality, to the tricks and schemes used by ALL dealerships. After reading it, you'll say "Oh, yea, he did do that, and that, and that", and so on. You'll see.

Again, I'm not saying you got a bad deal, but I'd like to see the dealers bottom line on you deal. I'd be willing to bet it's not as great as you thought it was.

 

Not every dealer is the same. I got over kbb value for my trade-in and the new car was $1k over invoice. That's it. IS350s around here sit on lots for MONTHS. Everyone buys IS250 AWDs. They needed to unload the car.

 

That's a good article, but it is still possible to get good deals. Just don't negotiate off of the 4 square. I never discuss payment options -- how I'm going to pay, down payment, monthly payment. I first negotiate the price of the car based on known prices/hold backs (Edmunds has that). After the price of the vehicle is set, negotiate the trade in.

 

I agree. Good deals can be had. End of month/desperate salesperson = good deal. I'm not saying it's impossible to get a good deal. You just have to be careful and know what you're doing. IME, the 4 square is gonna happen weather you like it or not. Most dealers require it in the deal. No 4 square, no deal. The advise is to always negotiate the price of the car first, then mention your trade and negotiate separately. Good luck with that one! It will never happen. The salesperson will *have* to throw the trade on the 4 square. When negotiating, the salesperson will *always* ask about a trade. If you have one, it will be negotiated in your deal. If you lie to him/her and tell him/her you don't have a trade, and then spring it on him/her *after* you've negotiated your best deal on the new car, you become the bad guy and they will now try to screw you every which way they can. Sometimes they will even tell you to take a hike. You can ask that the trade be negotiated separately from the purchase, and they might even oblige but the fact is, it's all combined, and it's combined for one reason and one reason only: To create the "illusion" of a great deal. I know how these guys work. I only wish more people would read the article. It's invaluable information.
Please note: My statements are not "blanket" statements. Some dealers are different. Every situation is different. Every deal is different. My statements are the "general rule".

 

You are neglecting a major reason why people trade-in their cars. For the tax-credit. You are not taxed (varies by state) on the trade-in value of your car. Therefore, I saved money on the tax of the old car and some money on the new car sale. Especially today, where in Chicago, sales tax is the highest in the country, 10.25%.

P.S. There was no 4 square BS when I bought my car. Just trade-in value and new car value.