4570Man
Super Star Member
- Joined
- Apr 7, 2015
- Messages
- 18,310
- Location
- Crossville, TN
- Tractor
- Kubota M59, Kubota L3800, Grasshopper 428D, Topkick dump truck, 3500 dump truck, 10 ton trailer, more lighter trailers.
It's all about the fact that I want to compare what I am ACTUALLY paying. Not some number the salesman writes on paper to make me feel good....all the while hiding other costs in there to get the bottom like HE wants.
Obviously comparing used vehicles is hard because there are no two used vehicles alike.
But let's say you are shopping for a $30k vehicle....and you bring what you feel is a 10k trade to the table.
Two dealers may approach this differently.
Through barters one may keep raising the amount they will give you on trade. Maybe offer you $12k to make you feel good, while selling their vehicle at List of 30k.
Another dealer may only offer you 8k for trade but discount their vehicle to $24k.
They may have different delivery and doc fees. Or is one giving you an OTD price and the other gonna tack the tax on at the last moment.
Comparing monthly payment s takes all that into account.
And dealers have multiple avenues for lending. If you are only bartering on sales price....they have no incentive to make a few extra phonecalls to maybe save a percent or two.
About 3-4 years ago I traded in my 05 ram for a newer '16.
New one was listed for 34k and my trade, I felt was worth about $12k. Difference of 22k plus tax. I offered $20k cash plus trade OTD.
They came back and offered 12k for trade and kept theirs at $34k Add tax and other BS we were about $25k difference.
Through continued bartering they were eventually gonna give me $15k for trade but still sell me theirs for $34k but with tax we were still a few hundred over my $20k difference I was willing to pay.
Before I walked out....I asked the finance guy why they kept increasing my trade value rather than discount the truck. See, you pay tax on sales price of the new truck but get no credit for trade. I said why can't you sell me your truck for $27k (7k discount) and also give me 7k less for trade (down to 8k). Should make no difference to the dealer.....the only party involved getting less of my money is uncle Sam. They were dumbfounded that no one ever questioned that before. So through some creative rearranging of numbers...dealer got what they wanted, I got what I wanted, and uncle same got a few hundred less.
But again...it all comes down to what I am actually paying. I know what I am willing to spend....whether it be cash price or finance. And as such, I prefer not to negotiate on just a one of many parts that encompasses what I will have to pay for said vehicle. I like to include all aspects of it....and however the dealer wants to get creative with their number fudging to hit my target is none of my concern. If they cannot hit my target, I simply walk out
You have to pay sales tax on trade in value in Ohio? In TN trade value isn’t taxable and we just have to pay tax on the difference.