Any car salesmen in the house?

#1
HoleInTheRoof

HoleInTheRoof

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#1
Need some advice...

Recently (as in three months ago) bought a used 2008 Toyota 4runner. I still owe about 14k on it, and the book value is about 15k.

Got a corporate rental from work which was a 2016 4Runner, and I absolutely loved it. Looks, drive, everything.

I'm considering bringing my 2008 into a dealership and trying to trade it in for a 2014-2016 4Runner.

I guess I'm looking for advice on how that would work? Would the dealership work with a trade in that there is still so much owed on? Am I basically going to have to come out the pocket a ridiculous amount of money? Any suggestions?
 
#2
#2
Im in the market right now and have a lease and this is what I have found out: Its a numbers game, its what you owe vs what the dealership is willing to give you for it. If its less you roll that into the cost of the vehicle you are purchasing.
 
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#3
#3
HoleInTheRoof said:
Need some advice...

Recently (as in three months ago) bought a used 2008 Toyota 4runner. I still owe about 14k on it, and the book value is about 15k.

Got a corporate rental from work which was a 2016 4Runner, and I absolutely loved it. Looks, drive, everything.

I'm considering bringing my 2008 into a dealership and trying to trade it in for a 2014-2016 4Runner.

I guess I'm looking for advice on how that would work? Would the dealership work with a trade in that there is still so much owed on? Am I basically going to have to come out the pocket a ridiculous amount of money? Any suggestions?
Click to expand...


Were you looking at private sale or retail value? Don't forget that trade value will be less than those figures.

A dealership will happily roll whatever negative equity you have into your new loan, so in theory you won't have to come out of pocket.

Personally I would try to bring some money down to help from being in bad shape on your new car. Also, talk to your credit union about getting GAP coverage, which covers your negative equity if your vehicle is totaled. Don't let the Dealership charge you a kings ransom for GAP.

As always, there will be folks who turn their noses at financing a car, but for most folks it's the most logical thing. Personally I wouldn't sweat financing a 4 Runner because it is dead reliable. Financing something from the Fiat/Chrysler group for 82 months is another thing.

Buying used 4Runners is a tough thing. They hold their value well and are always in demand, so there might not be a whole lot of negotiability.

Try a site like cargurus.com for your search.
 
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#6
#6
Rolling your negative equity into a newer car is not a good idea at all, and can get you upside down really quick, unless you can make larger payments monthly. If there is no other choice then there is not much you can do about it, but if you already have a dependable car I would stick with it.

I do agree with Nerd...buying GAP is a must if you owe more than your car is worth and getting it through a credit union is your best choice.
 
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#7
#7
HoleInTheRoof said:
Need some advice...

Recently (as in three months ago) bought a used 2008 Toyota 4runner. I still owe about 14k on it, and the book value is about 15k.

Got a corporate rental from work which was a 2016 4Runner, and I absolutely loved it. Looks, drive, everything.

I'm considering bringing my 2008 into a dealership and trying to trade it in for a 2014-2016 4Runner.

I guess I'm looking for advice on how that would work? Would the dealership work with a trade in that there is still so much owed on? Am I basically going to have to come out the pocket a ridiculous amount of money? Any suggestions?
Click to expand...

Bend over.
 
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#8
#8
HoleInTheRoof said:
Need some advice...

Recently (as in three months ago) bought a used 2008 Toyota 4runner. I still owe about 14k on it, and the book value is about 15k.

Got a corporate rental from work which was a 2016 4Runner, and I absolutely loved it. Looks, drive, everything.

I'm considering bringing my 2008 into a dealership and trying to trade it in for a 2014-2016 4Runner.

I guess I'm looking for advice on how that would work? Would the dealership work with a trade in that there is still so much owed on? Am I basically going to have to come out the pocket a ridiculous amount of money? Any suggestions?
Click to expand...
What Nerd said x1000.

Sell your current vehicle to a private party, then purchase your new vehicle. I traded in a vehicle that I owed on ONCE! I seen the salesman smoking afterwards.:)
 
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#11
#11
Appreciate the input all. Except for the guy who told me to bend over.

I'll probably stick with my current vehicle for another year or two and then upgrade.
 
#13
#13
HoleInTheRoof said:
Appreciate the input all. Except for the guy who told me to bend over.

I'll probably stick with my current vehicle for another year or two and then upgrade.
Click to expand...

I would go that route. Try to pay off your current vehicle at a fast pace. Don't forget that a $12,000 trade in is better than a $12,000 down payment. You only pay taxes on the difference between purchase and trade.
 
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#15
#15
Nerd-Vol said:
Were you looking at private sale or retail value? Don't forget that trade value will be less than those figures.

A dealership will happily roll whatever negative equity you have into your new loan, so in theory you won't have to come out of pocket.

Personally I would try to bring some money down to help from being in bad shape on your new car. Also, talk to your credit union about getting GAP coverage, which covers your negative equity if your vehicle is totaled. Don't let the Dealership charge you a kings ransom for GAP.

As always, there will be folks who turn their noses at financing a car, but for most folks it's the most logical thing. Personally I wouldn't sweat financing a 4 Runner because it is dead reliable. Financing something from the Fiat/Chrysler group for 82 months is another thing.

Buying used 4Runners is a tough thing. They hold their value well and are always in demand, so there might not be a whole lot of negotiability.

Try a site like cargurus.com for your search.
Click to expand...

Perfectly stated.

I bought a new 4Runner in 2015. Best purchase i could have made, absolutely love it.

Problem is apparently most people feel that way, used prices are pretty crazy.
 
#17
#17
Nerd-Vol said:
I would go that route. Try to pay off your current vehicle at a fast pace. Don't forget that a $12,000 trade in is better than a $12,000 down payment. You only pay taxes on the difference between purchase and trade.
Click to expand...

So if I'm going to pay cash for a new vehicle and not trade anything in, what is my best negotiating tactic?
 
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#19
#19
Freak said:
I sought his advice when purchasing a car for my daughter recently. He's become the VolNation car expert. Lol.
Click to expand...

I'm
Pretty sure he's the one who told me to pay $50-$100 more a month for a car that I loved because either way I'm gonna be making a car payment. Best advice I ever got.
 
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#20
#20
VolStrom said:
So if I'm going to pay cash for a new vehicle and not trade anything in, what is my best negotiating tactic?
Click to expand...

If you are buying from a dealer, paying in cash does not sweeten the deal. The dealer will get a kickback from the credit union or bank for the loan. They do even better if they are able to tack on a couple of percentage points to your rate. It helps to have an idea of your credit score and what sort of rate you should be getting.

As far as negotiations on a new car. I would go to truecar.com or kbb.com and try to find the invoice on the car. If I can pay invoice before any incentives, tax and fee, I would sleep well. If their dealer fee is over $350 I would ask them to meet me half way on that. I'm certain that one could do better than invoice and if you're willing to go to battle.
 
#22
#22
I sold a used 4 Runner on Craigslist a few years ago in a matter of hours. People snatch them up quick.

If you decide to go that route you will have no problem.
 
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#23
#23
If you really want one.......get one. Sounds like the 4 runners hold their value so probably not the end of the world if your a couple thousand under water on your trade.
 
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#24
#24
The more educated you are about the purchase, the better off you will be. Cash doesn't help usually. It's all cash for the dealer at the end of the day. GAP is a whothwhile product when your getting it from reputable source, make sure that you understand what is and is not covered. Many of the products sold by insurance companies and credit unions are much cheaper than what the dealer or lender offers and they have much lower levels of coverage. Do your homework.
 
#25
#25
Nerd-Vol said:
If you are buying from a dealer, paying in cash does not sweeten the deal. The dealer will get a kickback from the credit union or bank for the loan. They do even better if they are able to tack on a couple of percentage points to your rate. It helps to have an idea of your credit score and what sort of rate you should be getting.

As far as negotiations on a new car. I would go to truecar.com or kbb.com and try to find the invoice on the car. If I can pay invoice before any incentives, tax and fee, I would sleep well. If their dealer fee is over $350 I would ask them to meet me half way on that. I'm certain that one could do better than invoice and if you're willing to go to battle.
Click to expand...

I'm close to buying a new car and I don't trade cars like some people do underwear, so it's been a while since I've bought one. I have no desire to finance it, so their normal hidden charges won't apply to me. I'm also not going to trade a car in so what I'm looking for is I give them money and they give me the car kind of deal.

Sounds like maybe an invoice deal plus any rebates might be the best I can expect without a big long drawn out battle. I suppose I can just lead them on in the finance game and pay it off before the first payment is due.

I really despise car negotiations. I've heard that the end of the month is a good time to get the best deal since they are trying to meet quotas?
 
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