Why won't they give me what my trades worth?

Lee Litchfield · 02-21-2010, 06:21 PM

There always seems to be a lot of confusion about how deals are figured when there's a trade involved. There are many different ways to present an offer to a customer and I try to take the mystery out of it on my blog today. Heres a link to it:
Lee Litchfield Blog

Lee Litchfield

GOLDWINGER2 · 02-21-2010, 06:34 PM

So on my 1988 Pace Arrow trade I would get $1, because by now everything needs recond., or it would just go to an auction. I'm better off giving it to a friend so he/she could have fun with it.

J

DandS · 02-21-2010, 06:35 PM

Great explanation and exactly the pricing experience I had when I bought my new coach last summer. My dealer went with option #3 (% off MSRP and wholesale book on my trade) and allowed me to sell my coach in the interim if I could do better which I did. Again, bottom line is what your budget is for new coach, how you get there is negotiable.

Lee Litchfield · 02-21-2010, 07:04 PM

Yes, we special order quite a few units and sometimes offer that option while they are waiting for the new coach to come in. Most aren't interested, but a few ask for a number that they could take their trade out of the deal. I would say about 1 in 5 actually sell their coach. I tell them if they do, that we will handle the sale for them so they don't lose the tax advantage. Most states (Oklahoma is not one of them) charge sales tax on the difference, so a sale done on their own can cost them big tax dollars. We just run the paperwork as if we are selling it at the price the owner sold it. We then adjust the trade-in price up to the amount it was sold. As a bonus, we are usually able to facilitate financing if necessary. Lee

Lee Litchfield · 02-21-2010, 07:20 PM

Quote:

Originally Posted by GOLDWINGER2

So on my 1988 Pace Arrow trade I would get $1, because by now everything needs recond., or it would just go to an auction. I'm better off giving it to a friend so he/she could have fun with it.

J

Not exactly, unless it's in poor condition. With reasonable miles it's probably worth $3K-$5K. Lee

**NLOVNIT** · 02-21-2010, 07:40 PM

Very interesting to understand how the deal works from the other side of the table. Thank you for sharing that w/us.

Lori-

Theberrys · 02-21-2010, 07:51 PM

Lee

It seems to me that option 3 is best. Yes the cash is the same, but isn't sales tax figured on the sell price of the new coach, or is it computed on the difference?

In any case it's the out the door cash spent that really matters and that includes tax and other add on costs neither party can controll.
The worst thing to make the decision on is the monthly payment. The lower the payment in most cases is the highest price over the term of the loan. Thats why Mortgage companys want you to refinance, there not being nice, they get more of your money.

Dick

powerboatr · 02-21-2010, 08:59 PM

thanks you sir
Now i really feel GREAT about my deal last year.
pretty fair all around
thanks

Dav5942 · 02-22-2010, 05:35 AM

Also took option 3 with a better discount(28%) and sold my old coach at $8k over wholesale(as dealer was actually offering us over wholesale due to the higher than normal demand of my old coach) which was quite easy! Was a great deal for buyer and easy transaction for us. No sales tax was involved(Montana).

DBOL · 02-22-2010, 06:13 AM

When we bought last June after confusion on financing I went to my bank borrowed and told them what I would pay turn key! On paper they showed NADA their unit and showed our trade to bring down to our offer.
Our unit was shown $30,000 over NADA pricing so there's many ways to get there!I thinl they where glad to get rid of me,after all said and done the salesman gave me some info that made feel great about the deal

REWahoo · 02-22-2010, 06:39 AM

Lee, the depreciation figures you show, are those figured from "retail to retail" prices? The depreciation numbers I'm familiar with (calculated from retail to wholesale) are more along the lines of 25% the first year, 10% the second, 6-7% the next three years, gradually tapering off to about 2% per year around year 10.

Dav5942 · 02-22-2010, 07:08 AM

Remember depreciation fiqures quoted are only averages and two other factors are more important.

1-the demand for your used coach-popular model, condition, etc.

2-times are achangin' and used coach prices have been going up not down!