So much for resale value
06-10-2005, 01:24 PM
#21
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trade-in value is not a number you should care about - care about what you will pay on top of the car you are trading in. They can give you a high trade-in, and a high sale price on the new car, and you aren't any better or worse off than with a low trade-in and a low sale price. The difference is the only number you should be concerned with. Decide how much you are willing to spend on the new car, on top of trade-in, and negotiate that. Don't worry about book value, trade-in value, sticker price - all those are distractions from the only number that matters - the balance you owe after trade-in.
Don't be surprised if the lessor hits you with lease-end expenses when the residual value of the car is less than its market worth.
Don't be surprised if the lessor hits you with lease-end expenses when the residual value of the car is less than its market worth.
06-10-2005, 01:27 PM
#22
Registered User
dealers do not take trades as a public service. it is a hassle for them, and they must make money. Figure most trades go to auction and sell for essentially kbb trade-in, maybe more depending on model. That is why they offer under kbb trade-in; to cover the auction, storage, transport, and title fees.
there's no way in hades any dealer will give you a good trade (private party) and a good deal on the new price. Some think they got a good deal only to find out the dealer kept rebates.
when your lease is up, SOMEONE must buy it. You say the residual is 18K? That's the price. You want the dealer to pay 18K then sell it at auction or something for 16K? Also, you're implying there is excessive wear; a dealer doesn't want it if that's the case.
You are best simply turning it in and crossing your fingers. some lease companies are better than others.
no really, lease end expenses are documented in the contract. I think they're $500 or so. if the value<market, they are more inclined to charge for mileage and wear.
there's no way in hades any dealer will give you a good trade (private party) and a good deal on the new price. Some think they got a good deal only to find out the dealer kept rebates.
when your lease is up, SOMEONE must buy it. You say the residual is 18K? That's the price. You want the dealer to pay 18K then sell it at auction or something for 16K? Also, you're implying there is excessive wear; a dealer doesn't want it if that's the case.
You are best simply turning it in and crossing your fingers. some lease companies are better than others.
no really, lease end expenses are documented in the contract. I think they're $500 or so. if the value<market, they are more inclined to charge for mileage and wear.
06-11-2005, 05:08 AM
#23
Used cars are huge money for dealers. They always ask if you have a trade in. Most dealers make more money on used car sales then new cars. The used car salesman in a dealership make the most money in a dealer and the position is highly sought after in the saleman world.
Usually they add 5000 dollars to a trade in when they sell it on there lot. So if they gave you 14k then added 5k. They would advertise the car for say 18,999. They probably would accept an offer of 17.5 and up from a customer. Only crap cars or cars with high milage go to auction. Used cars are a dealers second most profitable
thing. Service is the number one money maker.
I've turned in several leased vechicles. I never get charged. First clean that car like you never have before. Interior blemishes can be fixed with magic marker. Carpet holes and burns can be repaired(cut small pieces from hidden areas and glue them into the holes...hole puncher works great.) Make sure your tires have tread. Repair all stars or cracks in windshield. If the car is freshly washed and waxed , use armor all in interior and tires. Appearence is a big factor. Always get the pre-inspection. about one to two months before. That way you know what is wrong if anything and can repair it yourself at much less then the dealer.
Another option is.................If you buy another Acura. The dealer can buy your car. Honda will sell the car to the dealer for much cheaper than your 18,000. Especially if your buying or leasing a new acura. If your right around the milage that you are suppose to be then you should have no problem just turning it in and walkin out with a new Acura. Just make sure you get in writing that the dealer is buying your car and no use and abuse fees will ever be charged if the dealer backs out of purchase and sends it to auction as a lease trade in.
Be careful. The lease turn in is a big scam as far as dealer buy-out. The dealer says he has to pay 18,000. He says he will pay 14,000 and roll the other 4,000 into your new car deal or loan. In reality the dealer calls Honda and gets a special dealer price.
Probably around 2,500 cheaper than your 18,000. Its a total scam. The dealer does not pay what your residual says.
Usually they add 5000 dollars to a trade in when they sell it on there lot. So if they gave you 14k then added 5k. They would advertise the car for say 18,999. They probably would accept an offer of 17.5 and up from a customer. Only crap cars or cars with high milage go to auction. Used cars are a dealers second most profitable
thing. Service is the number one money maker.
I've turned in several leased vechicles. I never get charged. First clean that car like you never have before. Interior blemishes can be fixed with magic marker. Carpet holes and burns can be repaired(cut small pieces from hidden areas and glue them into the holes...hole puncher works great.) Make sure your tires have tread. Repair all stars or cracks in windshield. If the car is freshly washed and waxed , use armor all in interior and tires. Appearence is a big factor. Always get the pre-inspection. about one to two months before. That way you know what is wrong if anything and can repair it yourself at much less then the dealer.
Another option is.................If you buy another Acura. The dealer can buy your car. Honda will sell the car to the dealer for much cheaper than your 18,000. Especially if your buying or leasing a new acura. If your right around the milage that you are suppose to be then you should have no problem just turning it in and walkin out with a new Acura. Just make sure you get in writing that the dealer is buying your car and no use and abuse fees will ever be charged if the dealer backs out of purchase and sends it to auction as a lease trade in.
Be careful. The lease turn in is a big scam as far as dealer buy-out. The dealer says he has to pay 18,000. He says he will pay 14,000 and roll the other 4,000 into your new car deal or loan. In reality the dealer calls Honda and gets a special dealer price.
Probably around 2,500 cheaper than your 18,000. Its a total scam. The dealer does not pay what your residual says.
06-11-2005, 07:50 AM
#24
Registered User
[QUOTE=no_really,Jun 10 2005, 01:24 PM] trade-in value is not a number you should care about - care about what you will pay on top of the car you are trading in.
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