Edmunds Answers

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  • avatar knowledgepower 02/09/13 10:44 am PST

    The dealer is correct and gave you a wholesale price of the vehicle for auction pricing, customers most of the time look up the retail price of their vehicle and tend to place a higher value on it. Your vehicle is priced based upon what the buyer being the dealer who will wholesale it is willing to pay for it. Don't be insulted by a low figure, keep in mind they are telling you they can't sell the vehicle on their lot because it's too old. Consider selling it yourself but that is a royal pain unless you get a good cash buyer ready to buy now. If you do that I'd clean it up inside and out, have the vehicle checked out by your mechanic and offer the paperwork to be viewed by thr prospective buyer. Be flexible on offers and consider them in person and don't haggle over the phone. You can sell your vehicle if you have the time and patience.

Answers

  • mcdawgg 02/08/13 8:22 pm PST

    Sell it yourself is an option. It is a little more work, but if you want the extra $.....

    You will lose the sales tax credit on the $1,800, but that is very little ($126 at a 7% tax rate). You'd still get a lot more if you sold it yourself.

    I think Edmunds has an article about selling a car yourself.

  • Stever@Edmunds 02/08/13 9:05 pm PST

    Your post is a bit confusing but I'm going to assume that you haven't actually done the deal.

    Selling it yourself should get you more money, but it's more hassle. Since the dealer doesn't sell VWs, that's a good reason for them to just ship it to auction. But that doesn't mean you have to take a loss because that's their store policy. You could also see what the local VW dealer will offer you for it.

    Why a 2012? Is the dealer giving you a good deal on one in stock?

    I don't know how this particular dealer is doing but Nissan just reported 3rd quarter profits on 2/8/12 and profits dropped 35% on weak sales demand.

    Murano incentives are pretty high, which is another indication that they aren't flying out the door. $3,000 on a 2012, $2,000 on a 2013 for my zip code.

    You don't need a new car immediately since your Passat is running good. You may want to cool your heels and let the dealer come back with a better offer. Or shop other dealers. Or wait a month or three for the next deal.

    And you don't have to focus on just the trade-in price. You can roll all the numbers together and focus on one "out the door" price. That would be the TMV of the Murano minus TMV for the Passat plus any options, less the incentives. Figure out the tax and registration costs and you'll wind up with one number to base your payments on or for the amount you'll write the check for.

    Source: 

  • texases 02/08/13 10:55 pm PST

    I'm not getting the numbers you're quoting for trade in. What engine/miles/options?

    But even if it's that high, they are under no obligation to give you that price. Drop by a number of dealers, get offers from them, you'll get a real idea what the wholesale (trade in) price is for your Passat.

  • knowledgepower 02/09/13 10:44 am PST

    The dealer is correct and gave you a wholesale price of the vehicle for auction pricing, customers most of the time look up the retail price of their vehicle and tend to place a higher value on it. Your vehicle is priced based upon what the buyer being the dealer who will wholesale it is willing to pay for it. Don't be insulted by a low figure, keep in mind they are telling you they can't sell the vehicle on their lot because it's too old. Consider selling it yourself but that is a royal pain unless you get a good cash buyer ready to buy now. If you do that I'd clean it up inside and out, have the vehicle checked out by your mechanic and offer the paperwork to be viewed by thr prospective buyer. Be flexible on offers and consider them in person and don't haggle over the phone. You can sell your vehicle if you have the time and patience.

  • morin2 02/10/13 10:10 am PST

    I agree with the posts above. If you don't like the offer - which seems about right, then try to sell it yourself, realizing that you must get more than the amount of sales tax savings of the trade-in.

    In addition, if your state requires a state inspection, having the state inspection done with the certificate in hand before you advertise, makes a huge difference. Here in MD, we have the most rigorous state inspection in the country. It is common for repairs necessary to pass the mandatory state inspection to exceed the purchase price of an older vehicle such as this. That makes trading-in a more attractive option if the vehicle needs any work to pass the state inspection. A "raw" or uninspected old vehicle in this state is worth little more than scrap value because the cost to comply with the state inspection is so high on average. I can't remember the source, but I've seen statistics that the average cost to pass state inspection is over $1K. Since vehicles in this state are only inspected upon transfer, they often need a lot of work due to deferred repairs and maintenance.

  • carbuyer178 02/10/13 9:58 pm PST

    Thank you all for your responses. We needed to trade in the car because it is just too small for me and my family (I am 6'4" and my teenage sons are already 6' tall). There is not enough rear seat room.

    I was just trying to correlate what Edmunds calls the True-Market-Value (TMV) with the money that the dealer was offering.

    The dealer's position last week, and he showed us the auction report to back it up, was that 99 Passat's were going for between $800 and $1200. Their initial offer was only $1000. Their final offer was $1800.

    When I entered the data for the Passat a few weeks ago, I saw values in the mid to upper-$2000's for a trade in value. (I considered our car to be in "clean" condition). Today, however, I re-entered the value of the car, and its TMV trade in value was only $2113.

    This was a significant drop of several hundred dollars in its TMV, so the price we got from the dealer ($1800) was only a couple of hundred dollars different than what we could have fought for.

    I understand that Dealers are entitled to offer whatever they choose, but I would expect that in the end the TMV price and the dealer final offer would be spot on. In this case, as of today (2/10/13), it is nearly true, but only because the data in Edmunds dropped significantly. When we closed the deal last week (2/6/13), I had felt we were still several hundred dollars apart, giving me a great detail of concern that we weren’t getting the full value of the car. I still don’t understand how a car value could drop by so much in such a short period of time. As a consumer, we need to have a reliable source for car values with which to negotiate with the dealer.

    Source: 

  • Stever@Edmunds 02/10/13 10:35 pm PST

    This article may help:

    Pricing Basics for Used-Car Buying

    TMV pricing is updated monthly although adjustments are made each week for some models.

    Source: 

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