560SEL

Will the trade in value of a car like a GL be better at a private dealership?

I know very little about the business of used cars, but I got an awful trade in figure on our 13' GL450 from a dealer. They have to CPO the car so you'd think this might affect their trade valuation? In my case I've only put 8,000 miles on since I bought it CPO last year so there's likely little work to do.

Obviously private sale offers the best opportunity for a fair sale price, but its such a hassle. I did it once. What about the legitimate independent Mercedes shops that also sell cars? I think they buy at auction and repair labor free to turn a profit. So perhaps a CPO caliber car won't interest them?

Btw, the dealer offered $20,000 less than I paid 10 months ago...

I would like to get in to a 550 (drove one with active curve) or maybe even an older 63. But not with that trade gap. I don't know how much better the negative equity position is going to get any time soon either. It could take 80% of the term to get anywhere near even...

If I lease a new car from the dealer do you think that will impact the trade valuation at all? I know it's two separate deals, but you never know...

Thanks for any feedback.

Regards,
David

Count Laszlo

The whole process is a game and you have to shop around and figure out which dealer is willing to meet your expectations. Trade-ins always take a hit no matter who or how. But each deal can vary and depending on how you negotiate can depend on how they work the numbers from the sticker vs. trade-in. You can negotiate down the sticker and carry over some of the trade-in loss to find that place that's comfortable for you. For instance if you can find a '16 GL550 and negotiate the sticker by 8 to 10%, then work the trade-in loss, say 5% back into the GL550 negotiated price you "might" break-even or reduce your loss and pay less OOP. But you have to play hard and go through the paces. OR, just take your GL to a different brand and play the same game - switching brands does have an advantage in your situation.

nynd

Not sure how they factor in tax and whether you pay it on the difference. If so, then there is also the tax savings benefit. Simply put, let say you think your car is worth $10K. If you sold privately, you need to get $10K. If the dealer offered you $9K plus the tax saving on the new car assume $25K (then new car will be $25K - $9K = $16K + tax. If the tax rate is 10%, then its like getting $9K + $900 = $9900. So, depends on some variables and obviously, the higher the price of the trade in, the better the tax savings.

Shellbmb

That has definitely been my experience. We bought a used 2014 GL550 from ecarone in Dallas and they gave us great trade-in prices on our vehicles that were considerably more than the MB dealer. FWIW.

Dog hauler

Selling a car, and particularly trading one in, is always a bend over and take it in the butt proposition. To incur the least pain, take your trade to several dealers and see what they offer. That said, your selling dealer offering $20k less than you paid 10 months ago seems a little harsh. Especially since you didn't buy the car new and therefore didn't take the initial terrible depreciation that goes with just driving a new car off the lot. I'd buy from a different dealer for that reason alone.

anothercar

How does the KBB value of your trade compare to the dealer's offer?

Gentrypwc

Last summer we moved up from a 2010 ML350 Bluetec to a 2014 GL350 CPO. We knew the dealers would not give us a fair trade on our 2010. The "hassle" of selling ourselves was well worth the nearly $7K in additional cash that we kept in our pocket. I did my research on its true value, detailed it, took several picutures and posted on Autotrader.com. I also researched the Kentucky laws to transfer title and prepared my own bill of sale, odometer statement, and title transfer documents. It took about 2 weeks to sell the car and once we were at the dealer for our CPO, we had funds in place to make a deal on the CPO. The car dealer sales formula is designed to confuse and take advantage of you. Change the rules of their game and quit trading in your hard earned assets.

Dog hauler

What keeps me from selling cars privately, rather than trading them in, is that you have to get in the car with a complete stranger for a test drive. Almost without exception that goes smoothly. "Almost without exception" being the important part of that sentence because when it doesn't go smoothly and the would be "buyer" turns out to be a bad guy, you end up as the lead story on the local news. It's not likely, of course, but is it worth the chance?

Venom-AMG

Do you have a car max near you? I suggest you take it to them to get a quote. If you get the same estimate as the dealer trade in then I think you over paid for the car 10 months ago.

Chedman13

Get a quote from the dealership and carmax if possible.

Then post to the forums/craigslist/online for a few grand more and you're bound to sell it pretty fast as it's probably less than most parties are asking for, yet more than what you're going to get at the dealer.

Factor in tax savings by trading (and hassle of selling to private party).