bullshit dealers...

i cant believe they wont go under 30k. mine was priced a little over 30k and i got it for 26.5. plus, if i were you i wouldn't trade, i would sell. you should be able to get 20 k for yours or more

 

Anytime you are trading a vehicle in what they give you for your trade and/or asking price is totally irrelevant.
The only number that matters is the "difference" you have to pay,
how they break the math down does not mean anything. It is also much easier to just deal with one number instead of trying to keep up with "trade in" and "sale price".

Example:
30,000 sale price 28,000
15,000 trade in 13,000
------- -------
$15,000 difference $15,000

The difference will always be the only number that matters when trading.

Also depending on which state you live in and how much the taxes are you also have to figure that in if you decide to sell your truck vs. trading.

In my state (WV) taxes run 5% and you only pay tax on the difference. So if you were trading and getting $20,000 out of your truck you would not have to pay tax on that part of the deal. If you sell you truck and then buy straight our from the dealer you would have to pay taxes on the extra $20K which would be a extra $1000 out of your pocket. This changes from state to state so you will have to check your state's tax laws to see how it will effect your deal.

Once you agree to terms of the purchase do not walk into the finance office and just take what they offer you. Know your credit score before
you walk in the door and know what kind of rate you can get from you local bank so you will have a APR to shop with. If your credit sucks you are going to pay a high rate if your score is great you will get a much better rate but do not count on the finance dept to just give it to you. If they put you on 18% rate and you do not question it that is what you will pay. Also keep the term as short as possible with 60 months being the absolute max and less if much better.
Do not buy Accident and health insurance or life insurance and stay away from extended warranties this is where the dealership makes most of their money. Trust me on that.
I will promise you that your salesman and your finance person do not buy any insurances or warranties when they purchase a vehicle, what does that tell you.

Trying to hide the trade in until the last minute does not work, it just makes the dealer use real numbers most people do not like what they see when the deal is figured that way.

Do not be afaid to travel, most dealers now list their inventory on their websites and some even list invoice prices if you have to drive a couple hundred miles to get what you want or to get the deal you want.....hit the road.



Right now in my area with the economy the way it is most trucks can be purchased at invoice minus rebates. It is a buyers market.

 

One other way that wasn't mentioned is to go through an auto broker. For any of us who don't have expertise in haggling, pressure, etc., the broker is a way to sidestep that. Granted, the broker can exact a fee (average here was $500). However, you can stop in and say, "I have this truck for trade in, I want this truck, go make it happen", and the broker will find you the best deal (in my case the broker had second best, which was basically invoice price). You are handed the details, and it's up to you to agree if that's the way you want to go - broker is only paid on a successful sale. In the meantime, you can sit back or browse for a better deal.

 

Does it also depend on how much he owes on the truck? I could see if he owned it outright, then he would get the full benefit. However, if he owes a good portion of the vehicle's worth, would they only subract the difference between what's owed and the trade in price, or do they calculate the taxable portion of the new truck regardless of what's owed on the trade-in?

 

The amount owed on the trade in does not matter.

If he paid $20,000 for the truck he is trading in he would have had to pay taxes on that purchase when he bought it in order to get a license for it.
So no matter if its paid for or if he still owes $20,000 on it the taxes have already been paid on that vehicle and he will get credit for taxes paid on it.

He will only get tax credit on the amout the dealer gives him for the vehicle, if
the dealer only gives him $10,000 trade-in he would only get tax credit on that amount.

If you sell your vehicle and then buy another one straight out (no trade in) you have to pay taxes on the full selling price of the vehicle.

Keep in mind it works this way in WV but I'm not sure how other states do it.