doctor_grim

I went to the C-Spot event this afternoon and enjoyed it a lot. I really like the C 230K.

I have a question. I'm more leaning towards leasing the car. But is it applicable if I trade-in a $45,000 car to lease a C230K?

Has anyone done it before, a more expensive car for a less value lease or purchase? Will they do it?

Thanks.

amdeutsch

Sure they will. But be prepared to loose your shirt as well. They will really lowball you.

This $45000 car of yours; what is it and on what did you base its value?

sqkev

you know the dealer would try to make money on ur trade in anyway...i wouldnt even bother to do any trade ins..

Buellwinkle

Here's how trade-ins work for the un-intiated. They look up the average sale price of your car at the past Manheim auction, usually fairly close to Kelly Blue book but more indicative of what they can dump it for quickly. Then they figure what's the point if they can't make a lot of money so they offer you 2-4K below that price. That way when you bargain them down to a very slim profit on the new car, they can still make a lot of money on your trade with very little effort. Only a small fraction of their trade-ins end up on their lot.

What can you do -

1. call a few dealers of that brand you want to dump and see how close to trade in they'll give you, I've even seen them pay KBB trade-in if they need it for their used car lot.

2. put the car in the paper, sell it for $1-2K over trade-in, it will sell reasonably quick but be prepared to hold onto it for a month.

3. take the car to bad neighborhood and hope it's stolen and not recovered.

CitronC230K_03

oggle

DL_AMG

MAXIAM's Choice - BEST VALUE

f00b4r

Isn't it the case though if you trade in your car at the dealership you are purchasing a new car your net taxable amount on the new car purchase is the difference in price of the two cars (atleast that appears to be the case in Texas).

So depending on how much tax you will be paying on your new vehicle you may be better off taking a hit on the trade in value rather than selling it private party.

DL_AMG

Nop. It's 2 sperate transactions. Sale tax applys to total sales amount not out of wallet amount. Trade in or no trade in, you pay the same tax $.

revstriker

This is not true for everywhere. Since the tax you are paying is a "state" tax, each states have different rules regarding what the taxable amount is.

The last post is correct about Texas. In Texas, you pay tax on the difference between your trade in and the new car price/value. The catch is that you have to trade in the car where you plan to buy the new car.

There is a company called Carmax (owned by Circuit City I think) that will buy your car at trade in value, even if you do not purchase another car from them. They normally come pretty close to Kelly Blue Book for trade in.

DL_AMG

I see. In CA you pay sale tax on purchase price not the difference.

MBC320X

Car Max will offer you the KBB wholesale value, but then take the tax amount on your car out of what they offer you. That really sucks. Their expanation is that you will save that much if you trade your car in and buy one from them. Like they have anything I want to buy.

In addition, KBB value is also rated in 3 categories from excellent to poor. Car Max says they do not rate any cars better than average unless it is brand new. That's more BS. My 5 yr old car was in much better condition than the average 2 yr old car. that's another $1000 they weren't going to give me. No thanks, I'll sell my car to a private party and get $2500 more than what Car Max was willing to offer.