Trade in now or when Telluride is delivered?

[Nay12x]

Hello!

I just ordered a 2022 EX Wolf Grey Nightfall edition. I have a 2017 Ram Truck to trade in. The trade in is valued 12k over what i owe on it. Just want some people input on if i should trade in/sell the truck now or possibly wait to Telluride delivery and the trade in value dropping or raising. Very tough decision, hate to wait and the value of the trade in drops and i have less money to put down on new Telluride.

Thanks!

 

[ESKPD]

I waited until it was time for mine (just this weekend). Found out that I was able to get $1700 more at Car Max than what dealer was offering for trade in. So, I sold it to Car Max. If you have an extra vehicle and can drive it for the next 2-3 months (or longer for some folks), then go for it. Otherwise just wait until you know the vehicle is there. Car Max quotes are good for a week BTW. My dealer wouldn't even give me a quote until the day of since prices could theoretically change.

 

[Nay12x]

ah ya, the manager said the quote online could be higher or lower on trade in day when telluride arrives. I should bring it by Carmax and see what they would offer me. I am provided a work truck so my personal truck has only 27k miles on it in 4 years. Thank you for input.

I waited until it was time for mine (just this weekend). Found out that I was able to get $1700 more at Car Max than what dealer was offering for trade in. So, I sold it to Car Max. If you have an extra vehicle and can drive it for the next 2-3 months (or longer for some folks), then go for it. Otherwise just wait until you know the vehicle is there. Car Max quotes are good for a week BTW. My dealer wouldn't even give me a quote until the day of since prices could theoretically change.

 

[goodzerz]

I keep checking the sale value of ours at Carvana and it's been staying the same/going up a bit. The quotes they have been giving me are good for a month so I feel a bit better about it. If the dealer's offer is within what we'll save on taxes I'll just go that route but I doubt they'll be higher than the online quotes I've gotten so far.

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[anotherlostmonkey]

If you have another vehicle to drive I'd consider trading it in and locking in the current record prices for used cars. The media is indicating used car prices are finally starting to drop. We may have finally hit the peak for now, however chip manufacturers are indicating that the shortages may stretch into 2023. So its really hard to say if this is just a temporary drop or if prices will stay at this level.

My wife and I debated on trading in her 2016 Honda CRV, and going down to just the Tellruide until we got another car. We got really good offers on the CRV, but decided to hold on to the CRV. The offers were really attractive, but decided it would be too hard to try and replace the CRV at a reasonable price. Especially since the time frame for car prices to comedown is a huge unknown right now.

 

[PittPa]

Look at tax implications also, in PA you only pay tax on net sales so $50k new car with $20k trade is 6% of "30k.

 

[tuffgonger]

Obviously depends on your situation, but if you can go without the car, the timing is right. We are at least 2 months away from the Telly and dumped the 2017 Highlander last week. In one week at the beginning of Aug, the CarMax value went down $1,000 on the Highlander. I ended selling to a local KBB office for about $1k higher than CarMax and only about $1k less than private party value. The peak has definitely hit and appears to be on the downward slope (only speaking for NorCal zip codes). In the end, we got 73% of the purchase price on the 2017 Highlander back in our pocket, so we can put a fatter down payment on the Telly.

 

[Nay12x]

I keep checking the sale value of ours at Carvana and it's been staying the same/going up a bit. The quotes they have been giving me are good for a month so I feel a bit better about it. If the dealer's offer is within what we'll save on taxes I'll just go that route but I doubt they'll be higher than the online quotes I've gotten so far.

Ah nice, ya carvana offered a tad lower than dealer, but dealer didn’t look at vehicle. They did quote online.

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[Walter white]

Hello!

I just ordered a 2022 EX Wolf Grey Nightfall edition. I have a 2017 Ram Truck to trade in. The trade in is valued 12k over what i owe on it. Just want some people input on if i should trade in/sell the truck now or possibly wait to Telluride delivery and the trade in value dropping or raising. Very tough decision, hate to wait and the value of the trade in drops and i have less money to put down on new Telluride.

Thanks!

Im wait for my GWP SX to arrive. I traded in my car. They gave me a great price on the trade in. They gave me a loaner car at no cost until mine comes in. I got lucky and my dealership had what I wanted in transit. It’ll be 4-6 weeks. What I understand is used vehicles are at a very high demand.

 

[Nay12x]

Im wait for my GWP SX to arrive. I traded in my car. They gave me a great price on the trade in. They gave me a loaner car at no cost until mine comes in. I got lucky and my dealership had what I wanted in transit. It’ll be 4-6 weeks. What I understand is used vehicles are at a very high demand.

Oh wow they have you a loaner?! Are they selling your the Telluride MSRP?
Ya used vehicles are going for crazy high prices

 

[Walter white]

Oh wow they have you a loaner?! Are they selling your the Telluride MSRP?
Ya used vehicles are going for crazy high prices

Yes, at MSRP

 

[Nay12x]

Yes, at MSRP

Thats awesome, I’m glad you didn’t overpay

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[sprengBoard]

Hello!

I just ordered a 2022 EX Wolf Grey Nightfall edition. I have a 2017 Ram Truck to trade in. The trade in is valued 12k over what i owe on it. Just want some people input on if i should trade in/sell the truck now or possibly wait to Telluride delivery and the trade in value dropping or raising. Very tough decision, hate to wait and the value of the trade in drops and i have less money to put down on new Telluride.

Thanks!

As many have said, there are many factors that influence this decision. I'm going through the same dilemma as we speak.

A big part of the equation is how your state handles new vehicle sales tax with a trade in. In Texas, where I am, tax is calculated on the selling price of the vehicle being purchased minus any allowance given for a trade, regardless of the amount owed on the trade. For example, if the vehicle being purchased is $50,000 and the trade allowance is $30,000 you'd only pay tax in Texas on the remaining $20,000. Tax rate is 6.25% which works out to $1,250. If you sell your vehicle elsewhere rather than trading it in, you'd pay taxes on the full $50,000 purchase price in Texas, which would be $3,125 (a difference of $1,875).

Some things to consider:
* Can you go months without the vehicle you'd sell?
* How much tax savings would there be by trading it in versus selling elsewhere?
* How do the offers from dealerships compare to other car buying services like CarMax, Carvana, Shift, and Vroom?
* How much would the value have to change between now and then to make selling now more profitable for you?

In the above example, assuming the trade values are the same at the dealership and elsewhere, it is $1,875 more profitable to trade the vehicle in. The value of the trade would have to decrease by at least that much by the time your Telluride arrives in order for selling elsewhere now to make sense. Unfortunately nobody can accurately predict what the market is going to do. Even if every single component that's in short supply now were to magically appear in stock it'll take time for that to translate to pre-pandemic vehicle supply (and, consequently, prices/values).

 

[Nay12x]

As many have said, there are many factors that influence this decision. I'm going through the same dilemma as we speak.

A big part of the equation is how your state handles new vehicle sales tax with a trade in. In Texas, where I am, tax is calculated on the selling price of the vehicle being purchased minus any allowance given for a trade, regardless of the amount owed on the trade. For example, if the vehicle being purchased is $50,000 and the trade allowance is $30,000 you'd only pay tax in Texas on the remaining $20,000. Tax rate is 6.25% which works out to $1,250. If you sell your vehicle elsewhere rather than trading it in, you'd pay taxes on the full $50,000 purchase price in Texas, which would be $3,125 (a difference of $1,875).

Some things to consider:
* Can you go months without the vehicle you'd sell?
* How much tax savings would there be by trading it in versus selling elsewhere?
* How to the offers from dealerships compare to other car buying services like CarMax, Carvana, Shift, and Vroom?
* How much would the value have to change between now and then to make selling now more profitable for you?

In the above example, assuming the trade values are the same at the dealership and elsewhere, it is $1,875 more profitable to trade the vehicle in. The value of the trade would have to decrease by at least that much by the time your Telluride arrives in order for selling elsewhere now to make sense. Unfortunately nobody can accurately predict what the market is going to do. Even if every single component that's in short supply now were to magically appear in stock it'll take time for that to translate to pre-pandemic vehicle supply (and, consequently, prices/values).

Wow that’s very informative, thank you for that! I will do the research, I believe Florida is similar to Texas on that.

 

[MG535]

Hello!

I just ordered a 2022 EX Wolf Grey Nightfall edition. I have a 2017 Ram Truck to trade in. The trade in is valued 12k over what i owe on it. Just want some people input on if i should trade in/sell the truck now or possibly wait to Telluride delivery and the trade in value dropping or raising. Very tough decision, hate to wait and the value of the trade in drops and i have less money to put down on new Telluride.

Thanks!

The used bubble is guaranteed to pop… at some point. You might get lucky and still get out of it unscathed when your Telly arrives but personally I wouldn’t bet on it.

If you can get by without the truck I don’t see any reason to avoid or delay cashing in this lottery ticket before it effectively expires.

 

[Nay12x]

The used bubble is guaranteed to pop… at some point. You might get lucky and still get out of it unscathed when your Telly arrives but personally I wouldn’t bet on it.

If you can get by without the truck I don’t see any reason to avoid or delay cashing in this lottery ticket before it effectively expires.

That’s what I’m saying, I could get by not having the truck. As I have a work truck and don’t drive the personal truck as much. Tough decisions sometimes

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[mcbrains001]

Im wait for my GWP SX to arrive. I traded in my car. They gave me a great price on the trade in. They gave me a loaner car at no cost until mine comes in. I got lucky and my dealership had what I wanted in transit. It’ll be 4-6 weeks. What I understand is used vehicles are at a very high demand.

I had a similar experience last year too. I traded in my Sorento and they gave me a loaner from May 21 to Sept 21. Speak with the dealership and see or try another dealership.

 

[Nay12x]

I had a similar experience last year too. I traded in my Sorento and they gave me a loaner from May 21 to Sept 21. Speak with the dealership and see or try another dealership.

Ya, I’m going to call them now. A loaner would be amazing

 

[MG535]

n the above example, assuming the trade values are the same at the dealership and elsewhere

Even without the entire market correcting, a Kia dealership may not offer anywhere near the same as a recently IPO’d startup with no need to show profit every quarter yet which has billions in capital.

 

[sprengBoard]

Even without the entire market correcting, a Kia dealership may not offer anywhere near the same as a recently IPO’d startup with no need to show profit every quarter yet which has billions in capital.

That's absolutely true, but each dealership is different and I've had it go both ways (a high-volume CDJR dealership came in thousands under other offers from Shift and Vroom, but a low-volume VW dealership offered to not only match but beat the offers from Shift and Vroom).