Folks seem to have summed up the reality of the trade-in situation fairly well here, but I wanted to add, or at least re-prhase a thought.

Sure you will get less for you car by trading it in than selling it outright - but you are, in essence, paying for convenience. This is part of the allure of CarMax - it tries to maximize convenience and profit for the seller. However, it still is not nearly as convenient as signing a few papers and handing over the keys to your new car dealer.

The time and effort spent (not to mention money for advertising) to sell your car outright may or may not be worth the extra money - it depends on your situation. For many folks, they are just as glad to take what they can get on a trade so they don't have the hassle of selling the car themselves - and it can be a real P-I-T-A sometimes!

 

Many factors are conspiring against you. First of all, there is a bum ecomony which has all the big boys offering up to 60 months of interest free loans to move their stock. Cay you take on GM, Ford and Chrysler? Probably not. Second, because of this offer on new iron, used cars are worth less than they were just a year ago, as in nobody is offering interest free financing on used vehicles, therefore making them more expensive in comparison to new. Third, the auction value is probably more reflective of your car's true value, as painful as that may be. This is the price that the dealer will be able to move the car for, right now, and not have to deal with it on his lot. If you are offended by what the dealer offered, do what I did, sell your trade-in on your own. But be aware that these factors still will come into play. Probably the most you can realisticaly hope for is a wholesale price. Check with Kelly Blue Book or Carfax, and if that price is too low for you, keep driving your Mopar and forget the MINI.

 

As a MINI advisor, I just thought I would put my two cents in... I just got back from a MINI meeting. One of the questions asked was what's the hardest/most uncomfortable part of the MINI sales experience. You know what? Without exception, the answer was trade-in's. We know that you think, no matter what, you are getting an unfair price. All MINI dealerships are in different situations as far as what happens to the cars we take in - and what we can offer. We are lucky where I am to have 25+ franchises and a very generous group of wholesalers. However, other dealerships are not so blessed. KBB is a nice guide for customers to determine value, but they don't buy cars, and they don't always take into consideration market trends and availibility of said vehicle (if the auctions are flooded with a certain car - of course we can only offer less). I guess what I am trying to say is have a little faith and understanding in your advisor - they really are trying to HELP you and give you the best they can! It is very dissapointing to be offered a low price for your car - we know - we don't like offering it!! I can honestly say, I sincerely believe no one is out to "screw" anyone else - it's something we can't control. If you don't like the price - ask your advisor to offer other alternatives - this won't be new to them and if they want a happy customer they will (and should) help however they can!!

 

Nobody got screwed! All people that bargain try to out-do the other side. You were smart enough to back-off and go another route. Lots of buyers take the bait in their "Got to have it" emotional state, then ***** about it afterwards.. 'Hope your car sells.

_________________

 

You didn't get screwed--you didn't trade the car.
I took a hit on my trade as well. I wasn't happy, but I understand the realities of the car business.
Here's reality: Many dealerships (all brands) apply factory incentives to your trade value. So, it appears they are giving you a generous trade in allowance. Well, MINI is selling, so there are no factory incentives (ah, success!).
Here's what I recommend you do to obtain a benchmark: Take your "trade" back to the dealer you bought it from. Ask them how much they would pay to buy the car from you outright. If you do better than that anywhere, including your MINI dealer, you're ahead of the game--maybe! Here in Pennsylvania, the trade value is deducted before sales tax is computed (6%), so, any private sale has to also offset the savings in sales tax as well.

 

HAHAH
This is nothing new...

The dealership is in the game to make money AND make a customer happy... Without a loss to the dealership

I have had fine success on getting trade in values increased by $1000 OVER what they first suggest...

When I traded in my 95 Dodge Ram 1500 -for our mazda MP5, I got a sweet deal. Of course it is a pickup truck and they based their trade offer on the current market value and wholesale values. I got $5000 for it... Initially they wanted to give me a $4000 allowance for it, but I backed up my demands for $5k with current market value paperwork (auto-trader ads, etc.)
With it being in EXCELLENT condition and "fixed up" with HUGE wheels and tires, privacy glass, Bose, bed liner, bed cover, Viper Red, and low miles... It was an easy deal...

But it did need a new rear end, soon.

 

I've been driving a 1991 Jeep Cherokee with 197,000 miles on it, leaking oil, muffler beginning to rust out, ball joint creaking, and some slight body damage where a kid scuffed the side with his side mirror. Of course, I've also had no car payment for 7 years, and the Jeep has been one heckuva good deal for me. No problems at all until recently.

I figured I'd have better luck shoving butter up a bobcat's hiney with a red hot poker than getting any money for that trade-in , so I just kept it to haul our kayak around.

I think with MINI dealerships, it is best to sell your car yourself. It's a little more hassle, but they obviously have the upper hand.

See ya,
JS

 

This is something that virtually every dealer tries to scam people on. That's why you have to fight. I got a great deal out of the Jetta I traded at Ferman MINI of Tampa Bay, not at first, but after some fighting and almost walking out they gave me an offer I didn't want to refuse.
One other thing you have to figure is that, unless you're trading in a MINI, the vehicle probably won't be sold by the dealer, but will be auctioned off or bought by a wholesaler, who tend to give dealers bottom dollar for trades.

 

Just this past weekend I bought a new Mini and sold my old BMW to CarMax. The BMW was a 1994 325IS with about 120,000 miles (but the odometer had been replaced, the lights went out). The car was in immaculate shape, but I had lots of things that could have brought down the value of the car. The car was, after all, 10 years old and had seen some heavy use.

I was hoping to get $4500 for it, CarMax offered me $5800, Global Imports BMW / MINI offered $2500. Needless to say, I sold it to CarMax and am renting a car for a week until my MCS gets here.

Cars can be very personal items. We spend lots of time with them, especially if your enough of an enthusiast to join an online BB of your favorite. But don't take it personal affront when someone says your pride and joy isn't worth what you think it's worth.

 

Princeton MINI offered me 8k on my truck appraised at 15k at "other" dealerships. I decided to just keep it at that point. I had it re appraised last week at another dealership and I got $12,500.

Apparently MINI didnt think about this (among other things) when they set up their dealership networks.

--
Cheese

 

A MINI dealer is not obligated to give you a deal on a trade-in. As Sirron so correctly stated. Most likely the MINI dealer didn't want your POS on their lot.

jc