: Very Low Trade-In Quote from Dealer



Vdrenaline
01-26-07, 01:06 AM
I have a 2004 Platinum V with Sunroof. It has 47,100 miles. It is in very good condition. The ONLY damage is: minor curb rash on all 4 wheels, 2 dings and 1 minor scratch. Interior (including radio & buttons) is perfect. Garage Kept since new.

My lease only provides for 48,000 miles and that's also when the warranty expires. I also need an SUV, so sadly it is time to say goodbye to my beloved V.

I went to a locaL Jeep dealer today to see what they would give me for trade-in for a Grand Cherokee.

My Wells Fargo lease buyout quote as of today is $33,902, which includes an estimate of my tax liability in NJ. A dealer would not have to pay that tax so its really approx $31,500. The dealer said the wholesale value is $22,000 for a 2004 V but because of high mileage, they would only give me $21,000 for it. That's a $10,500 loss!!!

Kelly Blue Book says the Trade-in value for a good (not excellent) 2004 V with that many miles is $27,490. I have been told that KBB is a little optimistic, but the dealer is $6500 underneath the KBB value and that seems really excessive.

What is the car really worth for trade in? Can I talk the dealer up on this? or is $21,000 all its worth?

I do not want to sell private. I want to trade it to a dealer who will finance my under-water portion of the depreciation into a new monthly payment.

Any advice on this?

I am looking at Grand Cherokees, Tahoes, Suburbans. If anyone is a dealer, I am a ready willing and able buyer so please contact me. I am looking to do something in approx 30 days. I am now in CT but can easily deal with NJ and NY dealers and could conceivably travel further for the right deal.

Thanks in advance for any help!

kueh
01-26-07, 01:57 AM
I don't know if there's a CarMax in the NJ area, but I've found them to give pretty good values for the cars. With CarMax, you can just sell them the car without buy anything from them.

Feffman
01-26-07, 05:34 AM
Vdrenaline:

Couple of thoughts, owning both a V and a 2005 Grand Cherokee (of course it has a Hemi), the V has as much space for kids, junk, etc. as our Jeep. My wife loves her Grand Cherokee but we may look into trading it for the diesel Grand Cherokee due in March.

Feff
www.MVPTrackTime.com

sy1172
01-26-07, 06:23 AM
Seems low. I know of a 2005 V traded in at Fred Beans in Doylestown PA with $15K, mint, platinum for $29,000....if that helps. The guys are asking "Sale Price", "Have to move this creampuff....... " $36,999

Seems you paid a prertty high number when new to have such a high buyout.

ctsvflorida
01-26-07, 08:32 AM
Many people have posted KBB prices and please, anyone looking to sell or trade their V, throw that book out the window! I do think the dealer is a little on the low side but what I have heard and seen, they're close! Figure $26k-$27k for trade with the right miles, which you are about 12k over, and a car with no dings and not rashed wheels so, they're pretty close. I know is presumed normal wear and tear but an example is that my car has not a scratch or ding or rashed wheels..for example, and it is an '04 with 29k miles. Deduct $3k for the mileage and $1500 for miscelaneous stuff and they're only a little low. It is ugly, I know but I've been watching these cars resales pretty closely.

How are the tires? Is it time for new ones?

Here is some advice. Definitely shop around more and you will find a dealer to give you too much for your trade as many know very little about these cars. I have heard of people getting too much for their trade on our cars because of the KBB price and if they really want to get you to buy, they will pay too much by accident! When you do this, be prepared to sign on the dotted line right there and then! Don't give them anytime to investigate the prices and 'desire' for our cars! That's probably the biggest problem, is few people want these cars. Good luck in your quest and keep us posted!

One more thing, did you negotiate the trade price with them at all?

HushH
01-26-07, 09:13 AM
-- Nevermind, just noticed your lease is through Wells Fargo.

04CTSVforMe
01-26-07, 09:55 AM
Problem #1 and my advice...NEVER lease a car. You're stuck, and they know it. You are in an extremely compromised negotiating position. I wish you luck, but unless you can sell privately to reduce your loss vs. lease buy-out, your are going to get hosed.

I also recommend at least checking with CarMax, as i have sold three cars to them and was very happy with the transaction vs. trade offers.

BowenCT
01-26-07, 12:30 PM
Vdrenaline,

I'm afraid that dealer is spot on. Dealers use, and ONLY use Galves price guide when giving the value of a trade or off-lease vehicle. They do not use KBB, NADA, or Edmunds......never. I have the current Galves price guide right here with me, here is where they got thier number:

A 2004 CTS-V in "good" condition, ("good" as in a car that they would have no problem parking on thier lot and trying to sell) which yours sounds to be, with average milage of 39K is valued at $23,450. The penalty for milage is $275 per 1K miles over 39K, that puts your car at -$2200 for milage. That puts your car at $21,250, by the book.

Now depending on what they are trying to put you into, they could manipulate that figure a bit to sweeten the deal one way or another.

Trust me, as an 04 V owner, this hurts to digest. Unfortunately if a private sale is out of the question, then you must be willing to play by the dealers rules.

Best of luck.

ctsvflorida
01-26-07, 02:05 PM
Vdrenaline,


Trust me, as an 04 V owner, this hurts to digest. Unfortunately if a private sale is out of the question, then you must be willing to play by the dealers rules.

Best of luck.


He is right on the money and me being an '04 owner, it hurts me too! Galves blue book is 'absolutely' the only guide that dealers use so, as I wrote earlier, just throw that KBB in the garbage because it is not accurate on any cars!

heavy footed
01-26-07, 02:55 PM
YOU GOT FULL COVERAGE?
TIME FOR SOME FUN!:lildevil:

joshdctsv
01-26-07, 07:22 PM
Bowen, What does it say about an 05 in the same condition?

pabstcadillac
01-26-07, 07:52 PM
Considering that there are still probably several 2006 models left between CT, MA, RI, etc & that the invoice is around $49k-50k & that there is probably over $5k in rebates why would I buy a used 2004 with 48k miles on it verses a new 2006 for $45k with a full factory warranty? (Sorry about the run on.) Not too mention that the V is not for just any CTS or lux buyer, but more of a niche market. I hate to be the bad guy here, but if all of us didn't whine and complain about the cost on the front end, the re-sale would be greater. :2cents: :alchi: (I'm in the same boat, but maybe I'm just too complacent.)

joshdctsv
01-26-07, 07:57 PM
Solution: Mod the hell out of it and drive it into the ground! It's only a bad investment if you puss out within 5 years :D

riverrat
01-26-07, 10:37 PM
Not sure if this would help but try something like swaplease.com maybe you can find what you like and swap out of your V:alchi:

The people that started this company are family of a large dealer group they know the car business!

Koooop
01-26-07, 11:39 PM
SUV? So you're gonna drive a Mommy Mobile instead of your 400HP man car.
All I can say is tint the windows so no one can see you. :youarewoman:

I say buy an SUV and tell the wife to drive it! :thumbsup:

zozmanCTS-V
01-27-07, 06:44 AM
Solution: Mod the hell out of it and drive it into the ground! It's only a bad investment if you puss out within 5 years :D

Absolutely! Leasing is renting. You have no equity and lose a ton. Buy a used V that's 2-3 years old and keep it until it dies. You don't get clobbered with initial depreciation loss and you have spread out your cost over a much longer year span. :cool:

Randy

RightTurn
01-27-07, 10:01 AM
I don't know if there's a CarMax in the NJ area, but I've found them to give pretty good values for the cars. With CarMax, you can just sell them the car without buy anything from them.

CarMax is da bomb. When trading a Lexus a couple of years ago, I actually got $4500 more from Carmax than the dealer was offering for my trade. They will give you a written offer for your vehicle. Another option is to go for a high-dollar SUV with tons of options; that's where the negotiation $$ are.

Vdrenaline
01-28-07, 01:43 AM
Vdrenaline,

I'm afraid that dealer is spot on. Dealers use, and ONLY use Galves price guide when giving the value of a trade or off-lease vehicle. They do not use KBB, NADA, or Edmunds......never. I have the current Galves price guide right here with me, here is where they got thier number:

A 2004 CTS-V in "good" condition, ("good" as in a car that they would have no problem parking on thier lot and trying to sell) which yours sounds to be, with average milage of 39K is valued at $23,450. The penalty for milage is $275 per 1K miles over 39K, that puts your car at -$2200 for milage. That puts your car at $21,250, by the book.

Now depending on what they are trying to put you into, they could manipulate that figure a bit to sweeten the deal one way or another.

Trust me, as an 04 V owner, this hurts to digest. Unfortunately if a private sale is out of the question, then you must be willing to play by the dealers rules.

Best of luck.

Thanks for that info Matt. I think I found the best solution for my situation: I was having my V serviced at the Greenwich Caddy dealer and spoke to a salesman there while waiting. He was a real gentleman. Despite my interest in a slightly used Escalade that he had on the lot, he counseled me to keep the V until the end of the lease in Feb 2008, pay the mileage overage which would work out to approx $3000 (if I go 15,000 miles over) and buy a 12 month/ 15,000 mile GM extended warranty for $1400. That scenario would let me keep my V and pay only $4400 instead of trading it for an SUV now and losing $10,500. I can make do with the V for 1 more year then get an SUV at that time.