Drop Off Your Trade Before Delivery
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Cadillac XTS Forum Discussion, Drop Off Your Trade Before Delivery in Current Cadillac Vehicle Discussion; I am trading a 2011 BMW X5 diesel on my 2013 XTS Premium. My dealer says that he is selling ...
  1. #1
    CAPT Mike is offline Cadillac Owners Fanatic
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    Drop Off Your Trade Before Delivery

    I am trading a 2011 BMW X5 diesel on my 2013 XTS Premium. My dealer says that he is selling the X5 to the local BMW dealer for what he is giving me on trade. The "problem" is that he tells me the trade amount is only good for 30 days and that I'll need to drop the BMW off even if my XTS has not arrived yet. Well, as of Friday, my XTS (contracted on 7 SEPT) won't be delivered until the end of OCT and he needs my BMW by 6 OCT. My question is whether this is "normal" procedure. This isn't the first trade or buy of my life and with one exception - which was my choice to drop the car off early - no dealer ever asked for this before. It was always, "Your new vehicle is in, bring in your trade and title and we'll do the paperwork." Am I being paranoid, experiencing a new "game," or much ado about nothing unusual?

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    CAPT Mike is offline Cadillac Owners Fanatic
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    Re: Drop Off Your Trade Before Delivery

    This is a tough crowd. No opinions??

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    C&C
    C&C is offline Cadillac Owners Connoisseur
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    Re: Drop Off Your Trade Before Delivery

    Tell the dealer that you'll bring your trade in, on condition, he issue you a loaner until your order arrives. While I've never done this before, I believe that this is not unique and has been an option.
    mrrairai76 and mrrairai76 like this.

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    CAPT Mike is offline Cadillac Owners Fanatic
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    Re: Drop Off Your Trade Before Delivery

    Just heard from my dealer. I told him that I was not comfortable dropping my vehicle off prior to delivery of my XTS and the trade value should not change so much as to hurt the dealership. He agreed and all is well; he gets my BMW when I take delivery of the XTS. The only thing left is a question that really doesn't need to be answered and it is why did the dealership even request the early drop off?? Whatever; all is well that ends well.

  6. #5
    The Tony Show's Avatar
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    Re: Drop Off Your Trade Before Delivery

    Well your trade IS continuing to depreciate, so it's not outrageous for them to ask that they're able to get today's value out of it. Waiting to acquire the trade until next month will put them in a position where they paid last month's value, therefore making it harder to sell. If the value drops $1000 in the next month (which can happen), I doubt they'll hold the value they've quoted you.

    It would be the same as if you agreed to a price on a new car, then when you came to pick it up, an additional rebate had been announced. You would expect to pay today's prices and values for the new vehicle, as do they for your trade.
    mrrairai76 and mrrairai76 like this.
    Rest in Peace, J.D. (aka Dirt_Cheap_Fleetwood)

  7. #6
    ddawson is offline Cadillac Owners Enthusiast
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    Re: Drop Off Your Trade Before Delivery

    I think in your case, the dealer really doesn't know, when the car you ordered will actually be in. He is saying Oct. when in reality it may be Dec. Therefore, your car will have depreciated more than it is worth today.

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    CAPT Mike is offline Cadillac Owners Fanatic
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    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by The Tony Show View Post
    Well your trade IS continuing to depreciate, so it's not outrageous for them to ask that they're able to get today's value out of it. Waiting to acquire the trade until next month will put them in a position where they paid last month's value, therefore making it harder to sell. If the value drops $1000 in the next month (which can happen), I doubt they'll hold the value they've quoted you.

    It would be the same as if you agreed to a price on a new car, then when you came to pick it up, an additional rebate had been announced. You would expect to pay today's prices and values for the new vehicle, as do they for your trade.
    I agree with some of what you are saying, but the question is what is the trade value? What you find on the various internet sites, the local auctions, or ? Right now I can find at least 6 different trade values for my X5. My point is like the price of the new vehicle is a given, the MSRP. We know what the dealer pays for it. Give the dealer a reasonable profit margin and you have a solid price. Not so with the trade value. I have bought many vehicles over my lifetime and most of them were ordered as I don't like to buy a vehicle that is only close to what I want off the lot. When the deals were made with the trade, regardless of time it took for delivery, the trade was made at delivery with the value being the value. And if there was a new rebate, why not expect it? After all, it was coming from the manufacturer and not out of the dealer's pocket.

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    CAPT Mike is offline Cadillac Owners Fanatic
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    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by ddawson View Post
    I think in your case, the dealer really doesn't know, when the car you ordered will actually be in. He is saying Oct. when in reality it may be Dec. Therefore, your car will have depreciated more than it is worth today.
    If that is how GM is working, how can a dealership create a state of good customer relations. If that is the case, I don't want the car. How does the dealer stay in business? Why put together a sales contract? Would anyone give their vehicle in 1-3 months in advance prior to getting delivery? That is just ridiculous in my opinion. I truly love cars, trucks and bikes, but there is a limit to how long I would wait for the company to decide when they are going to give me the opportunity to give them my money. It's not 1964, when a new car costs 2-3K.

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    longslim is offline Cadillac Owners Member
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    Quote Originally Posted by CAPT Mike

    I have bought many vehicles over my lifetime and most of them were ordered as I don't like to buy a vehicle that is only close to what I want off the lot.
    What item are you adding to this car or is it a color combo you want? I have seen Premium XTS fully loaded on dealer lots, why don't you go to another dealer and get your car? They aren't that many option you can add to these car.

  11. #10
    The Tony Show's Avatar
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    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by CAPT Mike View Post
    I agree with some of what you are saying, but the question is what is the trade value? What you find on the various internet sites, the local auctions, or ? Right now I can find at least 6 different trade values for my X5. My point is like the price of the new vehicle is a given, the MSRP. We know what the dealer pays for it. Give the dealer a reasonable profit margin and you have a solid price. Not so with the trade value. I have bought many vehicles over my lifetime and most of them were ordered as I don't like to buy a vehicle that is only close to what I want off the lot. When the deals were made with the trade, regardless of time it took for delivery, the trade was made at delivery with the value being the value. And if there was a new rebate, why not expect it? After all, it was coming from the manufacturer and not out of the dealer's pocket.
    Your trade is worth what they can sell it for- no book or web site can tell you accurately what that number is. If they're not going to keep it and instead are selling it to the local BMW dealer, whatever that dealer is willing to pay is what it's worth to your dealer.

    Let's use imaginary numbers. Say your trade's wholesale value (what they can sell it at auction or to the BMW store for) is $25k, and that's what the dealer is giving you off the MSRP of the new car. That means they're making about $2,500 profit, give or take- a fair deal for you both.

    Now a month and half passes, and let's pretend your trade depreciates to a wholesale value of $23,500, but you still expect to be given $25,000 off MSRP. Now the dealer's profit is reduced to $1,000, and that's before they pay commissions, inspection, detailing, and other costs of doing business. Great deal for you, not so much for them.

    My point is that anything that fluctuates in value, like cars or stocks, has a value TODAY that might be different TOMORROW. If I wanted my broker to sell my 50 shares of Apple at today's values, I'd be extremely unhappy if he waited a month and fluctuations in the market caused them to sell at a lower value. That's basically what you're asking the dealer to do by guaranteeing you today's value for the trade, then not giving them the car for over a month.

    I'm not saying you're doing anything wrong or disreputable, nor am I taking their side. You just asked "why would they say this?", and I'm offering a look from their side of things.
    Rest in Peace, J.D. (aka Dirt_Cheap_Fleetwood)

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    CAPT Mike is offline Cadillac Owners Fanatic
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    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by longslim View Post
    What item are you adding to this car or is it a color combo you want? I have seen Premium XTS fully loaded on dealer lots, why don't you go to another dealer and get your car? They aren't that many option you can add to these car.
    I searched within 90 miles of my home. My choice is graphite metallic and caramel interior and w/o a sunroof. Nobody has one. The only one close was a Platinum version but it, of course, has the sunroof standard.

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    CAPT Mike is offline Cadillac Owners Fanatic
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    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by The Tony Show View Post
    Your trade is worth what they can sell it for- no book or web site can tell you accurately what that number is. If they're not going to keep it and instead are selling it to the local BMW dealer, whatever that dealer is willing to pay is what it's worth to your dealer.

    Let's use imaginary numbers. Say your trade's wholesale value (what they can sell it at auction or to the BMW store for) is $25k, and that's what the dealer is giving you off the MSRP of the new car. That means they're making about $2,500 profit, give or take- a fair deal for you both.

    Now a month and half passes, and let's pretend your trade depreciates to a wholesale value of $23,500, but you still expect to be given $25,000 off MSRP. Now the dealer's profit is reduced to $1,000, and that's before they pay commissions, inspection, detailing, and other costs of doing business. Great deal for you, not so much for them.

    My point is that anything that fluctuates in value, like cars or stocks, has a value TODAY that might be different TOMORROW. If I wanted my broker to sell my 50 shares of Apple at today's values, I'd be extremely unhappy if he waited a month and fluctuations in the market caused them to sell at a lower value. That's basically what you're asking the dealer to do by guaranteeing you today's value for the trade, then not giving them the car for over a month.

    I'm not saying you're doing anything wrong or disreputable, nor am I taking their side. You just asked "why would they say this?", and I'm offering a look from their side of things.
    I agree with your logic. However, I buy a new car or truck every 2-4 years and in 3 instances in the past 12 years bought and traded two vehicles at the same time. Each time I ordered the new vehicle and did not buy one off the lot. In each case, it took any where from 5-10 weeks to get delivery. The sales contract was set up front including the trade value. So in spite of the trade value going down somewhat, the deal was set. I might add that in every case including this one, the trade value was the equivalent of what was classified as a "rough trade" on the internet which was labeled as auction value by the dealer. In my mind, the dealership factored in the depreciation so their profit margin remains the same.

  14. #13
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    thebigjimsho is offline Cadillac Owners 10000+ Posts
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    So take the deal or don't. If the dealer's terms make you uncomfortable, move on. They play ball or they don't. So what?

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    The Tony Show's Avatar
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    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by CAPT Mike View Post
    In my mind, the dealership factored in the depreciation so their profit margin remains the same.
    Then there's the answer to your question. If they pre-planned and figured the car for slightly less than it's worth now, they should be fine with you keeping it until the new car arrives.
    Rest in Peace, J.D. (aka Dirt_Cheap_Fleetwood)

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    CAPT Mike is offline Cadillac Owners Fanatic
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    Re: Drop Off Your Trade Before Delivery

    Quote Originally Posted by The Tony Show View Post
    Then there's the answer to your question. If they pre-planned and figured the car for slightly less than it's worth now, they should be fine with you keeping it until the new car arrives.
    And if you look back through this thread, that is exactly what has happened. My biggest problem was with the early drop off as I accepted the trade value back when the contract was signed (so I knew where the value was set). In retrospect, I was confused regarding the "new game plan" as this is my first new GM car since late 1988.

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