Hi all.

I have been scouring the forums for tips/experiences on selling/trading in for a mini. I know the bulk of advice is to sell your old car private party instead of trading in.

I was curious, how others have facilitated private sell or carmax when they have only 1 vehicle and can't just sell it and not have something to drive while the check is being processed by the bank (my bank will hold checks over $5k for 5 days). My car is my only vehicle and I worry if I don't get a decent trade-in (looking for trade-in value for good condition on Kbb or edmunds), that I will not be able to go through with the ordering/purchase of the Mini. I feel like my current car is desirable ('06 Scion tC, 34k), but I know the dealer will lowball.

Any tips? Thanks.

 

When trading in, my dealer Morrsitown Mini would take newer cars that they could sell off the lot, so you should be OK... Older cars they would offer $500 b/c they would sell them to auctions.

Personally, I'd do the math to see which is better...
Trade-in reduces what you pay, and thus taxes

Private party will give you a higher sale price.

Also check with the dealer in terms of trading in your car when you receive the new one vs when you sign the contract...

 

I'd never do a trade-in or Car Max deal. Private party all the way.

My previous car was a '94 BMW 325i, with 190,000 miles and all original, including clutch and engine (no work on it). My husband put an ad on the intranet at his company, and the car sold in 1 day for more than Blue Book value. It needed work and we fully disclosed everything to the buyer, including the name of the shop that had taken care of it over the years.

Point is, use a little imagination and you'll get a much better deal. Thousand or more makes it worth the hassle in my book.

 

I understand you will most likely get a better deal going private party, but I guess my question is how did those with only one car (the one you want to trade/sell) do it?

Am I correct in thinking that the check you get for selling your car private party must be made out to you, and not possibly to the dealer you are buying your new mini from, and therefore to deposit it and then use it on your new car purchase, you will have to wait for the check it clear your bank (in my case, 5 days)? I can't go without my car for 5 days waiting for the check to clear before I turn around and make one out to the dealer on my new mini.

 

Well, first and foremost, are you right-side-up or upside-down in your tC? Carmax will generally low-ball you. They'll generally give you the "fair" rating on KBB. When I went to see what they would give me for my 03 Evolution, I was offered $13.5k when it was worth as much as $17k on trade and as high as $18.5k for a private party sale. Needless to say I didn't sell them my car. I ended up going to Mini of South Atlanta where they were willing to work with me some on my trade. I should have sold it privately, but I was getting inpatient after sitting on it for almost three months.

If possible, try to sell it yourself. If that doesn't work, come to a compromise on your trade-in value that you can agree to. Don't take their first offer.

 

Hmmm, I understand your dilemma. I guess that would be one of the main advantages of going for a straight trade.

No chance your bank is willing to make any kind of exception? I find out with mine (Wachovia) that if you open a special type of checking account (with an annual fee, no less ) they'll clear any check amount within 24 business hours.

That's what I made use of after totaling my first MINI. By the time my insurance company sent me the check I couldn't be without a car even one additional day. Also I couldn't get a rental as I'm only 20 years old (if you're overage, have you considered that?). So I opened the new account, got my check cleared the very next day and went into the MINI dealer that same day to purchase a replacement off the lot which I'd already had them put on hold.

It also helps that I've been with this bank for quite a few years now and know all tellers and the manager on a first name basis. A lot of times they're willing to help you out if they know you, your accounts have always been in good standing and you have a decent balance with them.

Best of luck.

 

Have you ordered a car yet, Stephanie? Do you have a delivery date?
If you sell your car and don't have a new one waiting, what will you do? Rent a car?
Start negotiating a trade with your dealer now. If you haven't ordered a car yet, try MoSA like Event Horizon did. I've also gotten fair deals from Global Imports in Atlanta.

If you go after a car that they have on their lot, go at the end of the month. Know your prices, both on your Scion and on the Mini. Start talking.
He who cares the least wins. It's your money; there's always next month and another dealer...
The trade reduces your tax burden; that counts as cash. Do the math a few times.

You could always get one of us to meet you at a dealership for moral support. They want to look good and know we're on these boards.

 

That's the big thing. Do you belong to a credit union? They seem to be a bit less uptight with this sort of thing.

Worst case scenario--rent a car.

 

My Scion tC is paid off. I have not ordered a car yet, but have been pricing them with several dealers. I'm not hurting for a new Mini, but I'm definitely interested. I understand it's a business transaction and respect that trade-ins are a convenience and you take a hit in your resale value for that convenience, especially if you are adding in rental cars, tax, etc in order to get more thru private party for your current car.

I was just curious if anyone else had found themselves asking these questions and what they decided to do and how it worked out for them.

Thanks all for the input.

 

What about a cashier's check? Would your bank clear that faster than a regular check? You could require the buyer pay that way. Odds are you'd make enough to cover teh cost of a rental for a few days.

Or, make some kind of arrangement with the buyer, that he can't have the car until the check clears, but give him a bill of sale or title or something. ?

 

Gentlemen's agreement is fine--but absolutely NO on the bill of sale or title. He could cancel the check, and then...

 

The finacial end of things is easy to take care of. Since you owe nothing on your current car and it is an 06 you will most likely have a large sum of money to apply towards the MINI. So financing wont be a problem. I would contact the bank or credit union you plan to use and present the financial end of your problem to them and see what they suggest. That way you know EXACTLY what they need to complete your transaction.

As for selling your car, it doesnt hurt to negotiate in advance with your car as a trade in and to also negotiate a non-trade-in price. Then compare the two. If the trade-in price offered isnt satisfactory then sell it privately and then you have a couple options.

Talk to your bank again and ask them if you can finance the entire price of the MINI and then reduce payment amounts or refinance once you have sold the Scion.

Once you have a delivery date for the MINI start selling te Scion 2-3 weeks before it arrives letting potential buyers know that it will be available on a certain date since it is your only car until the new one arrives. The worse case scenario is that you will end up asking the MINI dealer to hold onto your car for a little extra time until you sell your car.

For peace of mind sell the Scion a month to 6 weeks before the MINI will arrive, knowing that you might be able to stall the purchase of the Scion a few weeks if it sells quickly and you might have to rent a cheap car for a few weeks or so. Peace of mind sometimes has a price.

And finally, if you are given a bank check from a local bank you can always take the check that bank the day that you receive it and ask them to either cash it or for a small fee give you a bank check made out to you or the MINI dealership then you can take the check there immediately and get your new MINI. If you plan on putting some money down then the amounts of the two checks(your financing check and your Scion sale check) dont have to EXACTLY equal the total price paid for the MINI since you can write a check in person to cover the final difference.

Make sense? Let us know what you decide.

Cheers.

 

Every single time.
It's always come close to being a wash for me and I've gone with the convenience of using the trade-in method.
I have a background of being a former contractor for the homicide, sex crimes, & domestic violence units in southeast Florida and there were many cases that I remember that started with a car sale gone bad.

I think that oryx sounds like she's got her facts lined up and is ready to play poker.
Good luck ---

 

You contract to do homicide, sex crimes, & domestic violence? How much do you charge?

 

I'll do those things for free; I birddogged witnesses for the DA for cash.

 

Here's my situation. I have a 2 year old Saab 9-3 coming off lease with only 12,000 miles on it. If I buy it off the lease I have to pay sales tax on the residual and then would have to sell it for more than that to make it worth while. I need to find out if the car is worth more than the residual value, and if it is, have the Mini dealer buy the Saab at the end of the lease as they don't have to pay the sales tax as a reseller. Then I need the Mini dealer to give me a trade in value equal to the difference between the value of the vehicle and the residual value. Has anyone faced this situation?

 

That will never happen to your benefit; not with a Mini or other high-end car.
You didn't buy a house; you leased a car. Don't be fishing for equity.
Were you thinking that Mini would give your $20,000 for it & you give Saab $19,000 for it --- leaving Mini to try and sell it for $21,000? It's too much work for Mini; they want it for $18,500 and want to sell it for $21,500....
Dealers make money on leases, lots of money. If they sell you the car at the end of the lease, they make more money; they sell it to you at retail. Or they take it back and sell it at retail. That's what they do, make money. Leases are their favorite.

 

Actually, it happened to me the last time I got rid of a leased car, an Infiniti G35. I got a trade-in value of $1,000, the difference between what the car was worth and the residual value the Acura dealer paid to Infiniti to buy the car.

 

Fun with numbers...
I used to sell vehicles; different factories allow more "fudge" room; since that was the parent company that I worked for, I'd guess that your Acura dealer had at least 20% he could've come down off retail.
Is that what you ultimately paid? 20% off?

They are brutal. And they never lose.
At best they play with numbers until you think you did well; but you always have to go to the dealership and concentrate on the final deal. How much is it after all the dust settles?

 

I used to seel Toyota's and used cars for about 1.5 years in the late 80's. It was a slightly different auto sales world back then but the prinicples remain the same. At the time computers were still relatively new but the owner of the dealership was a computer whiz and set up software that would track the cost of the vehicle so that sales managers could make sure they were maintaining a certain profit margin at all times. As Arnbut stated above, there are many ways to manipulate numbers but the bottom line is always the same. The dealer knows how much they own the car for and know how much they will accept for a profit. There are times a dealear will lose money on a vehicle, since even a dealership some times owns a car for more than it is worth (demo or trade-in that has something unexpected wrong with it) but those times are few and far between. There are many factors that go into determining final price and final cost of a vehicle and dealers have perfected ways to maximize profits.

The only thing that determines when a customer gets a good deal is when the customer believes they got a good deal. Everything else is relative.

 

Step 1) order new MINI, just the way you want it
Step 2) a week before your new MINI arrives, list Scion on local Craigslist
Step 3) Scion sells, you walk, hitch a ride, or rent a car for a few days
Step 4) Enjoy new MINI, wonder why the hell you schlepped around in a Scion for 34K miles

 

Unfortunately, that's a vast simplification. If only it were that easy, I wouldn't have posed the question originally. Selling and arranging other transportation isn't always that easy. And, btw, i've enjoyed my tC greatly, as shown by the mileage i've put on it.

 

The tC is a neat car, even neater with the trd supercharger...

Unfortunately, the Mini consumer loses bargaining power when they order a car. The dealship has the vehicle and can set a price of their liking. At that point the consumer is committed.
My rule of "he who cares the least wins" sides to the dealer in this case.

Here's how I do it.
I have my car and I've researched its value. It's worth X in trade, Y in private sale, Z in full dealer retail.
I go to the dealer and find a car that I like. The sticker price is A. It's a Mini so there are no factory incentives for me but there might be for the dealer; they're tight-lipped about that. But, being the jackarse that I am, I'm going to figure that there's at least 10% that I can lean on.
So I take that 10% off A and arrive at B. I take 6% off Y, subtract that from B, and offer that amount in cash.
If the dealer doesn't like it, I walk away; I figure that I offered a fair and quick deal --- let's get to the paperwork and then you can go sell another car. I don't want them to sell me a car at no profit nor do I think that they don't deserve to make a profit off my trade. Just not too much profit...
They usually follow me out saying, "wait, wait; let me ask my sales manager". We dance. If I lose that day, I'll try another dealer or come back next month; I don't care.
Some dealers cave right away but not the really good ones.