Horrible trade-in value
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Cadillac ATS General Discussion Forum Discussion, Horrible trade-in value in Cadillac ATS Discussion Forums; I have inquired about trading in my 2013 ATS premium AWD with 12k on her. Sticker price was $51,900. Paid ...
  1. #1
    Golddogs is offline Cadillac Owners Member
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    Horrible trade-in value

    I have inquired about trading in my 2013 ATS premium AWD with 12k on her. Sticker price was $51,900. Paid $46k. The best offer received was $28k. So in the 17 months I have owned it, it depreciated $24k. I am trying to get $33-34k, is that not realistic?

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    tex2670 is online now Cadillac Owners Fanatic
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    Re: Horrible trade-in value

    Kelley Blue Book puts it at about $32K (I had to guess on your option packages, so that number may be off).
    http://www.kbb.com/cadillac/ats/2013...etype=trade-in

  4. #3
    DavidATS is online now Cadillac Owners Fanatic
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    Re: Horrible trade-in value

    A couple of months ago I bought a 2013 RWD Premium 3.6 for $34 with 12k miles on it (CPO from a Cadillac dealer). You don't say what engine or options you have on it or if you are trying at a Cadillac dealership or where. If the 3.6 I think $28k for trade in is a little low and $34k is too high.

  5. #4
    Golddogs is offline Cadillac Owners Member
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    Re: Horrible trade-in value

    It has the 3.6, moonroof, 18 inch alloys, cold weather package. Pretty much loaded as it could get. Initial quote of 28k was from a Chevy dealer.

  6. #5
    2manyhotrods's Avatar
    2manyhotrods is offline Cadillac Owners Fanatic
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    You don't expect the Chevy dealer to pay you retail for it. Do you?
    What's he going to do for profit after you were paid retail?

  7. #6
    wlk12 is offline Cadillac Owners Member
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    Re: Horrible trade-in value

    Don't expect ANY dealer to give you a decent trade-in value, regardless of the car (perhaps excluding cars very much in demand). It's the game they play - usually you're on site and have found a new car you like. If you take their offer, they make out like the bandits they are. If not, no skin off their noses. Just my opinion after about 50 years dealing with auto dealers.

  8. #7
    Golddogs is offline Cadillac Owners Member
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    Re: Horrible trade-in value

    Quote Originally Posted by 2manyhotrods View Post
    You don't expect the Chevy dealer to pay you retail for it. Do you?
    What's he going to do for profit after you were paid retail?
    I don't expect retail but I do expect a fair trade value.

  9. #8
    Hoosier Daddy's Avatar
    Hoosier Daddy is online now Moderator
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    Re: Horrible trade-in value

    Quote Originally Posted by Golddogs View Post
    I don't expect retail but I do expect a fair trade value.
    Didn't Wlk12 just tell you not to do that?
    cadaddio likes this.

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    bdwalters is offline Cadillac Owners Fanatic
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    Re: Horrible trade-in value

    Don't expect a fair trade-in value from a dealer. A Cadillac dealer might give you a better deal. CarMax gave me a decent deal when I sold my Acura - much better than the dealer - but I probably still could have gotten 20% more in a private sale. Regardless, trading in a new luxury car after a year is always going to be costly, regardless of make and model. You're paying for the worst year of depreciation and only that year.
    ben.gators likes this.

  11. #10
    jhatfie is offline Cadillac Owners Member
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    Re: Horrible trade-in value

    Dealers, every one will give you a low quote up front. I have just about always gotten very good market value with almost all my trades, but it always takes some patience and willingness to shop around. My 2011 Jeep Grand Cherokee Laredo 4x4, we got $1000 over kbb/nada/blackbook. They tried to low ball me at $20k, in the end I got $24k after walking away and working with other dealers and then coming back. Same with my Audi I just traded in for my ATS, got quoted low, ended up getting $33500 in trade which was about $2500 above their initial offer.

  12. #11
    GTO to ATS is offline Cadillac Owners Member
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    Re: Horrible trade-in value

    This is a prime example of why I don't buy new...I bought my '13 AWD 3.6 Performance for $33,500 with 16k miles and Certification a month ago. Only big money options I don't have are the factory 18s and the driver assist package...side note I really wish the blind spot mirrors were part of the awareness package.

  13. #12
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    db_outlaw is offline Cadillac Owners Fanatic
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    Re: Horrible trade-in value

    Are you planning on buying a chevy from that dealership? I would suspect they'd work with you on your trade-in.

    I was offered 26k for my 2.0T from an "outlet" dealership. They bumped it up to $30.6k so they could unload their used V sitting on the lot for 6 months.

  14. #13
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    Re: Horrible trade-in value

    Maybe you should have leased...here's a rough estimate on a typical purchase scenario

    you wanted a $51K ats you go in to buy it, fees and taxes are roughly 10% and typical financing is $150 to $200 per $10,000 financed you want to put $2k down so you are quoted an amount financed of $54100 (($51k + 10%)-$2k) which will roughly give you a payment of $800.

    so for 12 months (leaving out expenses like fuel and insurance) you're out of pocket $2k for the downpayment and $9600 in loan payments $11,600 in total, this is your cost of ownership the first year and $9,600 each year after that

    on top of this still owe the bank $44,500 on a car that's only worth roughly $30k in trade, an additional $14,500 expense

    whereas to lease the same car for 36 months with the current 60% residual you are looking at an amount financed after your $2000 cap cost reduction (downpayment) of $20,400... divided by 35 payments (first payment is included in downpayment) and you will roughly have a $580 lease payment in California you only pay tax on the payment this will be roughly $60 so your total lease payment is $640 roughly

    so first year expenses on leasing the car is $9680 and $7680 each year after

    you will only owe the bank $12,720 to satisfy the lease

    now lets explore trade in:

    after 1 year
    to trade the purchase you owe $44,500 you'll get $30,000 you're $14,500 upside down

    to trade lease you have to buy the car to trade it in this will cost roughly your residual plus remaining payments, this amounts to $43,320, already this is cheaper both to own and to get rid of

    lets say you ease off on this and go 3 years before trading

    the biggest depreciation is the first year, then it stabilizes until you hit 100k miles to about 1 to 3K a year so expect the car to be worth about 24-27K in trade after 3 years (remember these are rough back of the envelope figures, so don't flame me)

    purchase trade - you now owe the bank $25,300 and reasonably expect about that much in trade, whats owed has caught up with the trade value ....nice!

    Lease trade - you don't have to, simply return the car you're done go lease or buy a new one and you saved $5760 in payments over the purchase ($30,800 vs $25,040), this should more than cover a new down payment

    ----------

    in your case you negotiated price down to $46k assuming $2k down you'll roughly be at $720 a month or $8,640 a year..so $10,640 for the first year and $8,640 per year after, so after year 1 you'd owe $39,960 and can expect $30,000 in trade, so $9960 upside down and after 3 years you'd owes roughly $22,680, and can expect roughly $25,000 in trade so if things go well have about a grand or two in equity.....this is pretty much the same scenario for all cars, ATS does not have a bad trade in value at the moment, you are just taking the first year depreciation bath

    another indicator that resale is not terrible is the LEV (lease end value or residual) the bank has placed on the car, the bank is betting they can resell the car for more than this when you turn it in in the case of ATS the residual is set at 60% at the moment so they think it will roughly be worth $30k in 3 years

  15. #14
    carpenter is offline Cadillac Owners Enthusiast
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    Re: Horrible trade-in value

    Quote Originally Posted by pissedoffwookiee View Post
    [/COLOR]in your case you negotiated price down to $46k assuming $2k down you'll roughly be at $720 a month or $8,640 a year..so $10,640 for the first year and $8,640 per year after, so after year 1 you'd owe $39,960 and can expect $30,000 in trade, so $9960 upside down and after 3 years you'd owes roughly $22,680, and can expect roughly $25,000 in trade so if things go well have about a grand or two in equity..
    This assumes a 0% interest rate though doesn't it? If he were to have had a rate of say 3% he'd still owe roughly $2500 more on principal after 3 years. Scenario still the same for all vehicles though. It is just the way it goes though. The more expensive car you buy the more of a hit it's going to take over those first couple years.

  16. #15
    pissedoffwookiee's Avatar
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    Re: Horrible trade-in value

    Quote Originally Posted by carpenter View Post
    This assumes a 0% interest rate though doesn't it? If he were to have had a rate of say 3% he'd still owe roughly $2500 more on principal after 3 years. Scenario still the same for all vehicles though. It is just the way it goes though. The more expensive car you buy the more of a hit it's going to take over those first couple years.
    no the general rule of thumb of $150 to $200 dollars payment for every $10,000 financed is based on the most generic of loans which is 5 years at the typical lending rate of 5 to 6%, incentive rates that are below this are factory incentives thrown in to buy down the rate.

    basically the savings in leasing comes from lease incentives which are typically part of these lease deals and tax savings, as stated earlier in Cali you you pay the whole sales tax up front on the full selling price of the car then your down payment is applied, add dmv fees and basically you've added 10% to the cost of purchase....but in Cali on leases you don't pay sales tax on the whole vehicle, instead you pay sales tax assessed on the payment, which is one reason why lease specials give you the pre tax figure in the ads so if your LEV or residual is 60% you're not paying tax on the bulk of the car and if you trade in early you save even more on taxbecause you never made those payments

    so after 3 years you turn in the car and you avoided paying tax on 60% of the vehicle, this plus the lease incentives you scooped at the beginning (on the lease contract as Cap Cost reduction, which includes your out of pocket down payment) and voila savings.

    in the end leasing is more expensive, but only if all you do is lease versus keeping the car long term, for instance 10 years in which case in this example the $46K selling price plus tax plus interest will cost $53,840 divide that by 5 years and you have an annual cost of ownership of $10768 keep the car an additional 5 years again excluding maintenance fuel and insurance it cost you $5,300 a year to own it whereas you'd have leased 3 cars at the constant annual cost of each lease, the difference here is as luxury buyers it's the rare person that keeps cars like this, unless it's their retirement gift to themselves.

    so mainstream luxury buyers/leasers have a replacement schedule of 3 to 5 years partly because they can afford to own cars that are never out of warranty....so the long term savings of buying doesn't really apply.....because of some of the reasons pointed out already this has made leasing the life's blood of highline marques like Mercedes, BMW Audi, Cadillac, Lexus etc

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