Purchasing w/trade-in during Covid-19

[I'm-on-the-Telly]

Looking for feedback...

I've got a SXP with tow on order and received a call last week that it should be delivered this week.

I've got a trade which I was planning to unload at the dealer, but given that used cars are not selling since most cannot test drive, I'm wondering if I'm going to get completely hosed on the trade-in value? Or if they'll even accept at trade-in right now?

Even trying to sell on my own may not be worth the effort right now.

Perhaps the best solution is to pause on the purchase or re-order with hopes to get a 2021 model during the summer and buy some time?

I don't have an immediate need for a vehicle right now and a payment isn't high on the list, given the economy.

Thoughts?

 

[jw_tx21]

Looking for feedback...

I've got a SXP with tow on order and received a call last week that it should be delivered this week.

I've got a trade which I was planning to unload at the dealer, but given that used cars are not selling since most cannot test drive, I'm wondering if I'm going to get completely hosed on the trade-in value? Or if they'll even accept at trade-in right now?

Even trying to sell on my own may not be worth the effort right now.

Perhaps the best solution is to pause on the purchase or re-order with hopes to get a 2021 model during the summer and buy some time?

I don't have an immediate need for a vehicle right now and a payment isn't high on the list, given the economy.

Thoughts?

Well, if the numbers they present are good for you, then do the deal. If they aren't, then you can back out of the sale. Your used car value is unlikely to be higher next year. Your dealer should tell you if they will take your trade and at what price. You can use Edmunds / KBB to estimate its value. Just depends on how long you want to wait for the vehicle. If you don't mind waiting another year, then may as well make someone else happy as they can purchase your current order. Stay financially healthy too!

 

[Familyman20]

Unfortunately with this vehicle, not even a global pandemic can give the purchaser the upper hand right now. Between financing, rebates, and trade-in values the dealer holds the upper hand. Not even cash sales are getting discounted if you want to believe the internet.

Hopefully the dealer does right by you, because they don't have too at all. GL

 

[raydog9379]

Trade values have definitely fallen some. On my former Infiniti that was traded in exactly 2 months ago in Feb., I got about $1k more (which was exactly KBB's offer) than what KBB is saying it's worth now.

On the flip side though, new cars are sitting no matter what people might say. At least around here in the Chicago suburbs. I had looked at inventory about 3-4 weeks ago, and seeing pretty much the same exact cars still sitting there today for purchase. I'd have to imagine they are going to deal with people to close a deal. With nearly 20M people now out of work, their target market has shrunk.

There are now also 22 used SX models on Cars.com and 110 used overall across trim levels. Those #s didn't exist 1-2 months ago. Many people are sitting there without income or reduced income and looking at payments coming due every month. Some are getting deferment from Kia but that will only last so long. Expect to see more hit the market. That combined with a smaller market will reduce the pricing. Now on the other hand, they've been shut down at the factory for a few weeks and the #s there are keeping the supply side lower for now.

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[markjenn]

I think the previous posters nailed it. Assuming you deposit is refundable, I’d just prepare for some (perhaps contentious) negotiations on delivery day. If they can’t give you something reasonable (probably below pre-Covid book but not too much lower) then just walk. I wouldn’t want to try to sell a car privately in this market, both from a value and risk standpoint, and if the trade is late model, it will lose a lot of value if you hold onto it until things normalize. You don’t want two heavily-depreciating assets in today’s economically uncertain climate.

if you’re at all worried about your own income stream, I’d walk regardless.

- Mark

 

[Bananahead]

For what it's worth, Carvana's offers seem to be pretty fair. I checked my Explorer and Carvana is offering me close to $1k what KBB spits out.

 

[jw_tx21]

For what it's worth, Carvana's offers seem to be pretty fair. I checked my Explorer and Carvana is offering me close to $1k what KBB spits out.

That's a good point. I used Carvana's offer as leverage in my own negotiation with dealer. It was $1400 higher than dealer's initial offer for trade.

 

[Familyman20]

That's a good point. I used Carvana's offer as leverage in my own negotiation with dealer. It was $1400 higher than dealer's initial offer for trade.

Thats what I've found too. Hopefully ours is built before Carvana adjusts their "techno wizardry" to real world conditions and I can use them for some kind of leverage on our trade.

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[I'm-on-the-Telly]

Interesting...I wonder if Carvana did some recent Covid-19 adjusting...I just did a quick check and the Carvana offer was $1800 less than KBB for my 2013 Audi Q7. And of course KBB was significantly less than Edmunds and NADA for Trade-in value.

 

[Familyman20]

Could be the type of vehicle for their business needs as well. The 2013 Audi may not sell too well for their target consumer. For example the wife's Prius was priced significantly higher than other online valuations so maybe that type of vehicle sold quickly for them, which may also be why they offered more for it than say my 2007 Acura which I'd practically be giving them for next to nothing.

 

[saltyorange]

Thats what I've found too. Hopefully ours is built before Carvana adjusts their "techno wizardry" to real world conditions and I can use them for some kind of leverage on our trade.

Carvana and Vroom have been adjusting. Prices I was offered by those services for an Infiniti on February 11 had dropped by $7500 when I ran it again on April 2.

 

[jw_tx21]

Interesting...I wonder if Carvana did some recent Covid-19 adjusting...I just did a quick check and the Carvana offer was $1800 less than KBB for my 2013 Audi Q7. And of course KBB was significantly less than Edmunds and NADA for Trade-in value.

Yes, unfortunately 2013 Q7s don't have much value anymore due to high expected maintenance costs. I've seen retail values around $15-$18k with standard mileage, which means trade in around $13,500. Hopefully you can get more... but remember that there is usually a sales tax savings with the trade in. Next year that 2013 Audi will trade for around 10 - should lose about 3k in 1 year. Rough.

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[Dougb44]

I trade it in a Hyundai Santa Fe limited ultimate with very low miles 21600 I had done my homework with price from KBB Edmunds and nada, and I located two similar cars within 100 miles so I had a good idea the value of my used car but I got somewhat less than what I expected perhaps a thousand to 1500 less. the dealer told me they just were not spending any more than that on used cars with the sales dropping so much and told me the price that was listed for and true to their word that is what the price is on their website now for my used car.

 

[raydog9379]

Yes, unfortunately 2013 Q7s don't have much value anymore due to high expected maintenance costs. I've seen retail values around $15-$18k with standard mileage, which means trade in around $13,500. Hopefully you can get more... but remember that there is usually a sales tax savings with the trade in. Next year that 2013 Audi will trade for around 10 - should lose about 3k in 1 year. Rough.

It's crazy how that is. I had a 2011 Camry SE V6 I sold to Carmax back in May 2018 with 92k miles on it for $11k (dealer and KBB offers were lower). New price was $31k (it was loaded). In Feb I got $10,800 for my 2013 Infiniti JX35 with 97k miles on it. New price was $53k I believe.

Roughly similar mileage, within a few thousand miles. Age of vehicles was roughly the same at sale. Both sold with a little bit of extended warranty still remaining, and in excellent shape body/mechanical wise after having everything taken care of under warranty on the Infiniti. Tires definitely needed to be replaced on the Toyota when I sold it, tires on the Infiniti were <6k miles on them. They always factor those things into trade/sale. 1 cost more than $20k over the other. Both sold for roughly the same in the end.

In terms of maintenance, the Toyota never had anything wrong. Oil changes, filters, tires, battery... that's it. The Infiniti was a different story, lots done and thankfully had an extended warranty.

 

[Bananahead]

Carvana and Vroom have been adjusting. Prices I was offered by those services for an Infiniti on February 11 had dropped by $7500 when I ran it again on April 2.

I just checked and my Carvana offer went down $2k. Ouch.