Help me understand how this trade in offer works?

[supercanadian]

Hi folks...let's again assume I am an idiot....which I am. So I have a 2020 Limited and the dealer contacted me and asked me if I was interested in trading it in for a 2021 Limited. I told them no because I will be taking a beating on depreciation....plus I love my truck. He said he could get the same truck with add on tech package and I'd pay less than I do now.

He said that he could lower my payment and current interest rate I pay doing the deal. What am I missing on this? Doesn't make sense to me, where I would be taking a hit as my general assumption is that I'll be getting raked over by trading in a 2020 for a 2021?

 

[2019REBEL]

Dealers are hard up for used vehicles so that's probably why they are doing it.

 

[SD Rebel]

Hi folks...let's again assume I am an idiot....which I am. So I have a 2020 Limited and the dealer contacted me and asked me if I was interested in trading it in for a 2021 Limited. I told them no because I will be taking a beating on depreciation....plus I love my truck. He said he could get the same truck with add on tech package and I'd pay less than I do now.

He said that he could lower my payment and current interest rate I pay doing the deal. What am I missing on this? Doesn't make sense to me, where I would be taking a hit as my general assumption is that I'll be getting raked over by trading in a 2020 for a 2021?

The new truck will have manufacturer discounts attached to it, along with lower interest loans that only new vehicles can get. Sometimes it's actually cheaper to buy a new vehicle than the same one 1-2 years old.

Some people can't qualify for a new vehicle, and it's a lucrative market. Your used truck will make them a higher margin when resold, higher rates attached to the loan they can also get a piece from the backend of that loan.

 

[NorthStar]

That or he is simply blowing smoke and it will be an entire waste of your time. Do you know the salesman? If not, he may be a new, young salesman who is casting for a deals using verbiage he's heard from his coworkers. You could get in there and it's a bust...won't know until you take the hook. ;-)

 

[supercanadian]

This is one thing that I don't worry about as my current truck I bought all online/text. They approved my old trade in without seeing it, order my truck since it was custom as i wanted no tow mirrors but the 3.92 gears with no etorque. I trust him not to string me along as I had the bill of sale sent to me before i arrived. To be honest it was the best car buying experience of my life as the day I took delivery i was there for about 10 minutes to sign, he handed me my keys and didn't even look at my trade in.

Its the highest volume dealer in Canada so they move alot of vehicles, when I bought my 2020 they beat the price of my local dealer by about 8k. I tried to buy local but they kept telling me it was bait and switch until i showed them the bill of sale and asked if they could match it or even come within 1k i'd buy from them, they said nope the price was too good. it was about a 2 hour drive to the dealer based in Toronto. Have had friends buy there in the past so i felt somewhat comfortable, but was very nervous none the less and also considering i picked up the truck then had to turn around and drive 250km home...on the busy highways in toronto in an unfamiliar vehicle...slowest i've ever drove on the 401.

I am curious now and might engage further, he already sent me a print of the truck they'd order for me matching everything i have now plus the new tech package. Not sure i'll do black appearance package again....it would be my 3rd black truck...maybe white this time....still need to think this through.

 

[z0n3]

Sure he could lower your current interest rate and payments.... how? Stretching your loan out longer and downside is paying more interest in the long term.

 

[supercanadian]

yes....i just asked about the loan length! good catch.

 

[supercanadian]

Same length as current loan he said in the text. I gotta be honest i have no idea my current term so going to look that up. I only make the money, my wife manages all that stuff so I'll need to check to ensure it matches.

 

[busa2009]

Seems like nobody really answered your question. No your not getting a better deal just because he can lower your payments and apr


Sent from my iPhone using Tapatalk

 

[busa2009]

Keep your truck if you want a new try and and sell privately.


Sent from my iPhone using Tapatalk

 

[Wakesnowb]

Maybe it is simply the product of interest rates being lower now than on the previous financing?

 

[iLikeTurtles]

Keep same loan duration (by same i mean restarts your 72mo or 60mo or whatever your term is when you sign papers) and have a lower monthly payment with no down payment?

I dont care how, I would sign up for it unless you dont want to add longer to term, or if it does mot have the additional packages you want.

 

[iLikeTurtles]

Now that i think about it maybe I live close. Whats the dealer? Want to let him know I am interested? Im serious.
My work requires me to have a new vehicle. One year newer is always important to me.

 

[CPenn1086]

Normally this would be BS but we are living in some strange times. The used car market is hot right now. Def worth looking into...

 

[dts828]

Seems like nobody really answered your question. No your not getting a better deal just because he can lower your payments and apr


Sent from my iPhone using Tapatalk

Same length but your starting over

Sent from my GM1917 using Tapatalk

 

[supercanadian]

Same length but your starting over

Sent from my GM1917 using Tapatalk

Very true, bought my current truck in January 2020.


Sent from my iPhone using Tapatalk

 

[iLikeTurtles]

Whats your interest rate?

 

[mikeru82]

I would only do this if you aren't happy with your current truck.

 

[OldMarine]

as others have said, the phrase," keep your payments the same, or even a little lower" is CLASSIC dealer snake-talk. It lights up some guys like a pinball machine, cause they can tell their REAL finance mngr at home, " honey, don't be mad, I got the payment down by buying a new truck!"... there's a reason car/truck dealers have 2 houses and a boat. PLUS. if your truck is running great, and everything works? It's worth keeping for a while. Good luck.

 

[Rebelguy2020]

This is one thing that I don't worry about as my current truck I bought all online/text. They approved my old trade in without seeing it, order my truck since it was custom as i wanted no tow mirrors but the 3.92 gears with no etorque. I trust him not to string me along as I had the bill of sale sent to me before i arrived. To be honest it was the best car buying experience of my life as the day I took delivery i was there for about 10 minutes to sign, he handed me my keys and didn't even look at my trade in.

Its the highest volume dealer in Canada so they move alot of vehicles, when I bought my 2020 they beat the price of my local dealer by about 8k. I tried to buy local but they kept telling me it was bait and switch until i showed them the bill of sale and asked if they could match it or even come within 1k i'd buy from them, they said nope the price was too good. it was about a 2 hour drive to the dealer based in Toronto. Have had friends buy there in the past so i felt somewhat comfortable, but was very nervous none the less and also considering i picked up the truck then had to turn around and drive 250km home...on the busy highways in toronto in an unfamiliar vehicle...slowest i've ever drove on the 401.

I am curious now and might engage further, he already sent me a print of the truck they'd order for me matching everything i have now plus the new tech package. Not sure i'll do black appearance package again....it would be my 3rd black truck...maybe white this time....still need to think this through.

I also bought my 2020 Rebel diesel in Toronto, Peel Chrysler in Mississauga to be exact, I also bought my 2019 Jeep Trailhawk Elite from them last year. I live over 750 km north of Toronto, 8 hour ride for me.
You bought yours in January so no 0% financing right?, I bought mine in July with 0% financing for 84 months, that’s crazy, my longest Ioan ever for a truck! The thing is, I offered to put a big lump sum down on it to save but he said the price is the same even by paying cash for the entire purchase.
This is my retirement truck, I joke around and say, my early retirement pension will start the payments, after, Canada pension when I reach 60, then old age pension followed by my life insurance to finish