Factory Order - Trade-in Value Negotiations

[Xhumeka]

Just looking for feedback/advice on how to get a fair trade-in value when factory ordering.

I assume the best power you have to negotiate a fair trade-in value is at time of signing for the new truck - but most won't want to surrender their trade-in at that time unless they have another means of transportation for the 2 months while waiting for the factory order to arrive. Most dealers won't want to appraise your trade-in until you are ready to release, so if you sign the papers for your new truck what negotiating power do you have at time of delivery? The dealer will low-ball your trade-in and you either must accept that value or sell privately since they already have you on the hook for the full amount of the new truck regardless.

Are most people selling their trade-in privately when factory ordering? I know that's the best route usually regardless, but it's such a hassle dealing with craigslist lowballer and tire kickers!

 

[Zeronet]

Sold my trade in to Carvana. No hassle, no haggling and fair price. Better than I could get from the dealer by a lot. Drove to Carvana, sold the trade. Went to the bank, requested no hold on the Carvana check then went straight to the dealer to pickup my ordered truck. Really easy.

 

[Keezer]

if you sign the papers for your new truck what negotiating power do you have at time of delivery? The dealer will low-ball your trade-in and you either must accept that value or sell privately since they already have you on the hook for the full amount of the new truck regardless.

You dont own your ordered truck until you sign the (in my case) 2nd set of paper work upon taking delivery. The first set at ordering was basically a work sheet, non binding. You are not on the hook for an ordered truck, you can refuse delivery and get your deposit back. When the truck is finally on the lot the dealer thinks they have the leverage (they have a truck built for you with your name on the ws sitting right in front of your face).

Fact is you have the leverage as the dealer has a truck on the lot that they have paid in full for. My deal went South with the sales manager producing a paper for 71k +TTL. When I laughed it went to 62k +TTL, still way above what I 'signed' for on the order date 2 months ago. Said we negotiated EP + rebates at time of delivery, they said rebates where included in EP which is the now 62k price (they knew the future rebates, lol).

I said thanks for your time can you credit the 1k deposit back to my CC and walked out. GM intercepted me as I was driving out and a couple hours later we had a deal.

MSRP 66200
Sale price 52250 + TTL

You might want to try your trade at the end of the process, just before finance which would make a whole thread by itself.

 

[Rick J]

I had never traded in a vehicle until I bought my new RAM. I am 73 so I've bought more than a few cars/trucks in my life. Usually, I donate my old vehicle to a local charity (like the women's shelter) that can use it, not just auction it off. Anyway, this time, when I ordered my RAM and we negotiated the price, I told them what I wanted for my F150. Their used car appraiser looked at it and said no problem. When my new truck came in and I went to sign the papers, the trade in was $2K less than what we agreed to earlier. I told them that in that case the deal was off. It didn't take more than 5 minutes for them to come back with the price we agreed to originally. On a side note, my salesman bought my traded in F150

 

[Xhumeka]

You dont own your ordered truck until you sign the (in my case) 2nd set of paper work upon taking delivery. The first set at ordering was basically a work sheet, non binding. You are not on the hook for an ordered truck, you can refuse delivery and get your deposit back.

Do you not have something in your Purchase Agreement similar to this?

Not sure about the USA, but this is pretty standard in Canada I believe...

 

[Rick J]

Do you not have something in your Purchase Agreement similar to this?

Not sure about the USA, but this is pretty standard in Canada I believe...

Not sure about others but all I did was initial the order sheet showing the configuration of the truck I wanted. No other paperwork was signed until I picked up the truck. I believe they do that so they can jack you around after your new truck comes in thinking you will be excited to get your new truck and will feel obligated because you ordered it. If they had a signed purchase agreement with a final price they wouldn't be able to do that. This, of course, is just my opinion and I could be totally wrong.

 

[Big Red Rebel]

I sold my vehicle privately.
Thank God my brother let me borrow his car until my truck gets delivered.

 

[Keezer]

Do you not have something in your Purchase Agreement similar to this?

Not sure about the USA, but this is pretty standard in Canada I believe...

No, nothing like that, was mostly finance stuff (had my own so not applicable) and an arbitration clause stipulating if you have an issue after you take delivery of the truck you consent to arbitration. Maybe CA is good for something after all.

 

[zchamber]

Negotiated trade in before I placed order and had them beat the best offer I got...there is no negotiation once you are looking at the monroney with your name on it !

 

[Xhumeka]

Negotiated trade in before I placed order and had them beat the best offer I got...there is no negotiation once you are looking at the monroney with your name on it !

Nice - and you had no issue holding them to their offer 2 months later once the new truck was ready? My dealer refused to negotiate a trade-in until closer to delivery since I would be driving it for the 2 months waiting for my factory order.

 

[Keezer]

there is no negotiation once you are looking at the monroney with your name on it !

My experience was opposite, lots of negotiation after the (Mike) monroney sticker had my name at the top. Dealer added everything and tried to pull a fast one.

 

[zchamber]

So yes was able to keep them to the trade in number as it was a written offer, no issues and have done it twice just fyi. One time I drove the trade for 6 weeks and other time just gave them after 1 week as did not want to take chance of having any accident and messing the superb price I got!

To Keezer: point was in regards to the trade in and especially a substantial trade in which reduces your tax burden quite a bit, you just can't say I am selling it somewhere else as depending on the state, hard to recover the 3-8% tax benefit. On the minimum, it can be a difference of $1-2K difference.

But, to negotiations on the price of the incoming truck, yes and no. Can I get the same smoking deal for a truck the dealer has paid for and has been sitting on the lot? maybe close to it but not the same as I can play all the big guys against each other until I hit my number. My ordered trucks had combinations of color, features that they can even scan were not available no where so I settled to be matched with the dealers best deals on a similar sticker truck when I was picking up and with the really big dealerships, not much of a problem to do it that way...maybe different with smaller ones.