Confused About Trade In

[appleface]

I owe about 7800 on my 2012 Civic. The dealer is offering about 6300 for trade in. But they have added the full price of the balance on the 7800 Civic to my final price. Does this look correct?

msrp 24,535
less discount 1,835
savings price = 22,700
trade in value - 6,300
trade difference = 16,400
taxes +509.67
admin fee +589
dmv fees +109
payoff on trade +7,800

Total Due 25,407.67

Sponsored

 

[benjaminh]

I owe about 7800 on my 2012 Civic. The dealer is offering about 6300 for trade in. But they have added the full price of the balance on the 7800 Civic to my final price. Does this look correct?

msrp 24,535
less discount 1,835
savings price = 22,700
trade in value - 6,300
trade difference = 16,400
taxes +509.67
admin fee +589
dmv fees +109
payoff on trade +7,800

Total Due 25,407.67

That does seem confusing. Why are you getting so little for this trade? Is it damaged? Edmunds has a place for estimating the trade-in value of a car. You might give it a try:

http://www.edmunds.com/used-cars/?m...d=ga62567363&gclid=CN7f4py7_MsCFcYehgod1SMN-Q

 

[enufced904]

I can't comment regarding the value but the math is correct. They are crediting the value of $6300. I'm sure they do it this way so you can see a full breakdown. Either way the difference is -$1500.

 

[appleface]

They say 103,000 miles put on the car is a lot. But I'm confused about writing a check for $25,000. I thought I would only write a check for 16,400 + fees and taxes + 1,500 which I am upside down on.

 

[Boz]

They say 103,000 miles put on the car is a lot. But I'm confused about writing a check for $25,000. I thought I would only write a check for 16,400 + fees and taxes + 1,500 which I am upside down on.

No. The only benefit you're getting by trading it in is not paying sales tax on the value they're giving your trade-in. You're forgetting that your loan payoff is $7,800.

You might consider NOT trading in your old car, because you could probably sell it on your own for $7,800+. What's the Edmunds private party sale value on your old car?

 

[appleface]

Kbb value is about $7800.

 

[JNK]

They say 103,000 miles put on the car is a lot. But I'm confused about writing a check for $25,000. I thought I would only write a check for 16,400 + fees and taxes + 1,500 which I am upside down on.

You have the pay off the entirety of the outstanding principal on the old car. A different way to think of it is to ignore the trade in and just add $1500 to the sale price, because that's the net difference between the value and what you owe on the loan.

 

[yoshi1]

Kbb value is about $7800.

That's wild, KBB gives me the trade on my 2009 depending on what quality (good or very good) $6800-7200 median values. But my 2009 has less than 80k miles...

 

[inv4zn]

Not too confusing at all.

They're giving you the full $6300 towards the new vehicle, and then charging you $7800 because that's how much you owe.

As somebody else said, difference is the same.

 

[Boz]

That's wild, KBB gives me the trade on my 2009 depending on what quality (good or very good) $6800-7200 median values. But my 2009 has less than 80k miles...

Why are you comparing your KBB trade-in value to appleface's KBB private party sale value?

 

[yoshi1]

Why are you comparing your KBB trade-in value to appleface's KBB private party sale value?

Because I got confused

 

[Boz]

Because I got confused

Oh, I see!

 

[MRsm1th]

sell that car private party. Big market for Hondas under $10,000. Something about cars over 10years old or over 100,000 getting cut down by dealers. I think it has to do with not being able to issue a new warranty. I have a 2012 EX 72,000 and they offered me $8700 I said nope and am going to try to get $11,000 to $13000. No reason you should try to make a few bucks. If it doesn't sell im sure they will still do the trade in. Gosh I sure hope you are not paying MSRP for the new civic. You should pay a few bucks under invoice. Some are even getting $700 below invoice.

 

[appleface]

22,700 for EX-L. But trade on kills it.

 

[Billy4202]

sell that car private party. Big market for Hondas under $10,000. Something about cars over 10years old or over 100,000 getting cut down by dealers. I think it has to do with not being able to issue a new warranty. I have a 2012 EX 72,000 and they offered me $8700 I said nope and am going to try to get $11,000 to $13000. No reason you should try to make a few bucks. If it doesn't sell im sure they will still do the trade in. Gosh I sure hope you are not paying MSRP for the new civic. You should pay a few bucks under invoice. Some are even getting $700 below invoice.

This. Even for 103k, trade-in sounds low, as long as you're not in a hurry to purchase, I would give private party a shot. You can get more than $6300.

Sponsored