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    • LiamTLOU
    • By LiamTLOU 8th Dec 19, 1:13 PM
    • 24Posts
    • 11Thanks
    LiamTLOU
    Best way (practically) to manage sell a trade-in car
    • #1
    • 8th Dec 19, 1:13 PM
    Best way (practically) to manage sell a trade-in car 8th Dec 19 at 1:13 PM
    Hey guys,

    Not sure if right thread, feel free to direct me to the correct one if not.

    I am going to be buying a used car sometime early/ mid next year and have decided to get the remainder of the money I need through an auto-loan and trading in my car I currently own.

    Am I able to get a letter/ email of intent from the dealer to begin with whereby they tell me how much they are willing to (if they are), buy my car for?

    That way I know how much I need to borrow from my auto-loan.

    I could alternatively look into how much my car is worth at the time (to a garage as I know I will get less by not selling privately), then use this as a way to lower the car price by saying "I was expecting to get this much for my trade-in, you didn't offer enough and now I don't have the enough money to buy the car. If you can lower the cost of the car, you have a deal". Not sure how that will go down, obviously they could just say "No" and not budge.

    Just wondering the best way to go about this scenario/ how people have done this in the past.
    Last edited by LiamTLOU; 08-12-2019 at 1:16 PM.
Page 1
    • zx81
    • By zx81 8th Dec 19, 1:22 PM
    • 24,815 Posts
    • 27,705 Thanks
    zx81
    • #2
    • 8th Dec 19, 1:22 PM
    • #2
    • 8th Dec 19, 1:22 PM
    A dealer will make you an offer at the time. It will be fairly low. They won't give you a 'letter of intent' beforehand.

    The only real way to get an estimate now, although again it will be very low, is through a car buying website.

    You sound as if you may be American from your use of 'auto-loan', in which case you might be better getting advice more locally.
    • LiamTLOU
    • By LiamTLOU 8th Dec 19, 1:59 PM
    • 24 Posts
    • 11 Thanks
    LiamTLOU
    • #3
    • 8th Dec 19, 1:59 PM
    • #3
    • 8th Dec 19, 1:59 PM
    A dealer will make you an offer at the time. It will be fairly low. They won't give you a 'letter of intent' beforehand.

    The only real way to get an estimate now, although again it will be very low, is through a car buying website.

    You sound as if you may be American from your use of 'auto-loan', in which case you might be better getting advice more locally.
    Originally posted by zx81

    I'm from the UK actually haha. I've been reading a lot about the process and a lot of it seems to be American videos/ articles, so I try not take it as gospel as I'm sure it's different here in some ways.

    Kinda hard then to go in with the money already in the bank and then make up the difference perfectly with a trade-in, seeing as I won't know how much the dealer is going to lowball me on my trade-in. I guess I just need my own backup cash to make up the difference if I get stuck in a pickle.
    Last edited by LiamTLOU; 08-12-2019 at 2:02 PM.
    • venison
    • By venison 8th Dec 19, 4:21 PM
    • 4,166 Posts
    • 6,085 Thanks
    venison
    • #4
    • 8th Dec 19, 4:21 PM
    • #4
    • 8th Dec 19, 4:21 PM
    The best way to get the best deal will be to sell your car privately, then find the car you want and then borrow the money, if you want to be certain of getting the loan then sell your car then get the loan then shop around you should get a better deal paying cash with no PX.
    If you fail to plan you plan to fail
    • LiamTLOU
    • By LiamTLOU 8th Dec 19, 4:54 PM
    • 24 Posts
    • 11 Thanks
    LiamTLOU
    • #5
    • 8th Dec 19, 4:54 PM
    • #5
    • 8th Dec 19, 4:54 PM
    The best way to get the best deal will be to sell your car privately, then find the car you want and then borrow the money, if you want to be certain of getting the loan then sell your car then get the loan then shop around you should get a better deal paying cash with no PX.
    Originally posted by venison
    While this is true and the best way to do it, the thing stopping me doing it that way is, how am I going to get around if i have sold my car!! It puts me in a scenario where I feel I am more desperate to get something and may settle for a worse deal as I don't have a car.

    I need my car daily to get to work, so I suppose I could take a week off and get my partner to drive me around. Just makes me feel slightly vulnerable doing it this way, though ideally I would go this route if I can make it work.
    • DrEskimo
    • By DrEskimo 8th Dec 19, 6:06 PM
    • 869 Posts
    • 641 Thanks
    DrEskimo
    • #6
    • 8th Dec 19, 6:06 PM
    • #6
    • 8th Dec 19, 6:06 PM
    It's pretty pointless trying to work out figures now, when you are possibly 6-months away from making a change. The value of your car and the value of the car you are buying are going to change a fair bit.

    When you do decide to change, use dealers (main and local independents) along with online valuation companies to get as many trade in values as possible. This will vary so get a lot. Use this and other listings online to then decide how much more you could get for a private sale. It may not be worth it if you can get a decent trade in for it (typically, they will be around 2-1k less though).

    Just be careful about using the car as a part-ex on the car you want to buy, as they will likely adjust the discount on the new car to offer higher part-ex value.

    You're better off using a unsecured personal loan from your bank or high street shop. Specific car loans tend to be very expensive.
    • LiamTLOU
    • By LiamTLOU 8th Dec 19, 7:07 PM
    • 24 Posts
    • 11 Thanks
    LiamTLOU
    • #7
    • 8th Dec 19, 7:07 PM
    • #7
    • 8th Dec 19, 7:07 PM
    It's pretty pointless trying to work out figures now, when you are possibly 6-months away from making a change. The value of your car and the value of the car you are buying are going to change a fair bit.

    When you do decide to change, use dealers (main and local independents) along with online valuation companies to get as many trade in values as possible. This will vary so get a lot. Use this and other listings online to then decide how much more you could get for a private sale. It may not be worth it if you can get a decent trade in for it (typically, they will be around 2-1k less though).

    Just be careful about using the car as a part-ex on the car you want to buy, as they will likely adjust the discount on the new car to offer higher part-ex value.

    You're better off using a unsecured personal loan from your bank or high street shop. Specific car loans tend to be very expensive.
    Originally posted by DrEskimo
    I am not looking at specific figures here. I am aware my car will be less in 6 months. I am looking at the method of executing this. An unsecured personal loan may be better, though it depends on what I am offered at the time, as the auto loan may be better.
    • yksi
    • By yksi 8th Dec 19, 7:46 PM
    • 194 Posts
    • 333 Thanks
    yksi
    • #8
    • 8th Dec 19, 7:46 PM
    • #8
    • 8th Dec 19, 7:46 PM
    I need my car daily to get to work, so I suppose I could take a week off and get my partner to drive me around.
    Originally posted by LiamTLOU
    You're making it too hard Rent a car for a week. It's not much money. (Now if the cost of renting a car for a week seems extortionate to you, that's when I note that you shouldn't be buying a car on finance - save up and buy one outright.)

    The trade-in value will lose you a lot on the old car and is used to entice you to buy a more expensive car, especially if done on finance, since people tend to spend more when they're not paying for it up front. Yes, even people who know it can happen.

    You've clearly already decided to buy on finance - this isn't a fault and is your right, but I'm sure many in this thread are wondering if it makes the most financial sense. Quite a lot of people go down the finance route just by assuming it's the "normal" way to buy a car, so make sure you've actually questioned whether it's the smartest way.
    • LiamTLOU
    • By LiamTLOU 9th Dec 19, 10:55 PM
    • 24 Posts
    • 11 Thanks
    LiamTLOU
    • #9
    • 9th Dec 19, 10:55 PM
    • #9
    • 9th Dec 19, 10:55 PM
    You've clearly already decided to buy on finance - this isn't a fault and is your right, but I'm sure many in this thread are wondering if it makes the most financial sense. Quite a lot of people go down the finance route just by assuming it's the "normal" way to buy a car, so make sure you've actually questioned whether it's the smartest way.
    Originally posted by yksi
    I didn't even consider renting a car, good thinking batman That makes it easier.

    It is good to be skeptical about the finance route. Though I have mulled it over for the last year or so, so it's not something I'm doing on a whim. I know all of the implications of using finance opposed to buying the car outright, and how yes, ultimately I am spending more doing it this route. Also I know how the dealer tries to get you using their 4 square method etc...Though having the full amount up front should help this.

    I can afford the finance and still save 1k~ a month after paying for my rent and discrentionary spendings, whereby I allow myself 300 a month to spend on "bits and bobs" and replacing things. while having outgoings of 600~ a month on a car (fuel, repairs and maintenance, monthly cost).

    The real reason for my finance? I'm impatient and I'm wanting to get something fun while I'm young Though I'm not being impatient to the point where I end up in a 3-4 year commitment where I'm in the financial pits with ridiculous interest rates. If I can't get a reasonable deal I won't get the loan and probably just save up to buy the car off up front.

    I also assumed it would help build my "credit score" a bit, which might help out when I go for a mortgage in 4-5 years.
    Good to have an asset behind me as well so they can see that as collateral, or something.
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