Advice required on part exchange

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Sat 10 May 2014 11:02

Advice required on part exchange - geek84

Hi Folks

Can you tell me when part exchanging your old car for a new or used car that you are buying from a garage, why is the salesman more likely to increase the price of your old car than reduce the price of the car that you are buying?

Thanks

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Sat 10 May 2014 12:19

Advice required on part exchange - 72 dudes

Not sure that is always the case.

I have bought two new (used) cars this year so far, both from the local Mercedes dealer.

In the first instance I was able to negotiate the price of the trade-in up a little bit (few hundred), but they would not budge on the price of the SLK I was buying.

In the second instance, I managed to negotiate an extra £350 on the trade-in, but the cost to change was still too much. so I walked away. 3 days later I got a call, they had reduced the price of the car I wanted (A180 CDi) by £500 as it had gone over the 45 day stock turn limit. Did the deal. It turned out that prior to my seeing the car, it had been priced at another £500 more, so the car was actually reduced by £1000. I was told they didn't make much money on the deal (but then they probably always say that, don't they)

So it all depends on the dealer's accounting system and what they want to show on the books for an audit trail. It's the "cost to change" that's important to you.

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Sat 10 May 2014 14:49

Advice required on part exchange - Andrew-T

So it all depends on the dealer's accounting system and what they want to show on the books for an audit trail. It's the "cost to change" that's important to you.

I think it is all to do with optimising the books for the VAT man to see.

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Sat 10 May 2014 12:40

Advice required on part exchange - martint123

So that you don't turn round and say you will buy the new car at the new cheaper price and hang onto your px for a private sale.???

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Sat 10 May 2014 17:23

Advice required on part exchange - scot22

Sorry to digress slightly. dudes I'm looking for A class and I'm interested in what you say about 45 day limit. Is this applicable to all Mercedes dealerships or just the one you were dealing with ? I'm under no pressure to change so really looking for a good buy !

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Mon 12 May 2014 10:09

Advice required on part exchange - 72 dudes

Sorry to digress slightly. dudes I'm looking for A class and I'm interested in what you say about 45 day limit. Is this applicable to all Mercedes dealerships or just the one you were dealing with ? I'm under no pressure to change so really looking for a good buy !

I don't think it would apply to all Merc dealers, just the dealer group I was dealing with. I believe 60 days is more common, but this is only what I've heard when shopping around.

There is some merit, however, to the argument that you are moe likely to get a better deal towards the end of the month, when dealers and individual salesmen may be chasing targets and bonuses.

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Sat 10 May 2014 17:49

Advice required on part exchange - Avant

The dealer maybe constrained by the manufacturer as to how much discount rhey can offer: but if they want the sale they can offer a bit more by upping the PX value.

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Sat 10 May 2014 19:16

Advice required on part exchange - misar

@geek84.

There is no point in worrying. All that matters is the cash they want for you to walk in with your old car and walk out with the new one. I have always insisted that is all I want to hear and told the salesman he can calculate it any way he likes while we haggle.

If you are also considering a private sale do a completely separate exercise. Same approach, say I'm not selling the old car (its for the wife, son, grandma....), don't waste my time debating discount percentages, just tell me your on the road price with road tax, fuel, delivery .....You can then look at used prices being asked by private sellers and decide if its worth the hassle to go that route.

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Mon 12 May 2014 12:43

Advice required on part exchange - skidpan

Most cars I have bought in the past have come with invoices that have no similarity with the deal discussed other than the bottom line figure. Its never bothered me since the only thing that matters is the difference to change, providing that is as agreed I am happy.

When I bought my Seat last June the accountant at the dealer actually asked me if I minded having fictitious figures on the invoice or did I want the truth, told him providing the figure on the bottom line was that agreed he could calculate it just as he liked.

Many years ago I worked with a chap who could not understand why the cost to change was the important figure and not the PX value. He would only buy from a garage that gave him the best PX even if another garage offerered less for the PX but with a huge discount off the new car. Several of us tried to explain the simple facts but he could not grasp them (he was a prefessionally qualified chap doing work that involved complex calculations). The last new car he bought before he retired was an Escort and the deal he did was unbelievable. The garage in the village bought his old car off him for the same price offered by the dealer as a PX since they knew and had serviced the car from new. We all said that he must have got a good discount off the new Escort with no PX to take in but he said he had been told that there were no discounts on Escorts. He must have been the only person to buy a new Ford in the past god knows how many years at full retail.

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Mon 12 May 2014 12:44

Advice required on part exchange - madf

Get some estimates on PEX value of your existing car: Google Glass' Guide etc.. All free..

Get some estimates on the real value for a dealer selling the car you want to buy.

Ensure they are mileage adjusted..

Calculate the difference.

that is the MAXIMUM you want to pay to buy a "new to you" car.##

Think of any dealer fitted extras like mats etc you want.Ask for them as part of the deal.

##And you can always but always state yoiu cannot afford any more than that figure less £1,000 or more - work on approx 8% of the selling price of the car you want to buy.

Also look at VED due on the new car, any service and MOT due (always get a 12 month MOT), warranties etc.

And for best deals buy out of season: 4x4s in summer , other cars in winter..

And be prepared to walk away.. And not come back. Lots of cars out there.

If you buy when no-onme else is, you will end up buying cheaply..If you do your sums.

Do no homework - and get screwed.

Edited by madf on 12/05/2014 at 12:47

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