Trading in a car - worth it to fix cosmetic issues?

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wjo
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Trading in a car - worth it to fix cosmetic issues?

Post by wjo »

My wife and I will be trading in a car in the next couple of months. It is a 2010 model in good mechanical condition and low miles (yes, the Boglehead thing to do is keep it but for various reasons it no longer meets our needs) but has some cosmetic issues - most notably some deep scrapes along the passenger side. These are limited in area to one door and the outer edge of the passenger mirror. I expect the cost to take it to a paint shop and fix the paint work in this area would be about $500-$1000 but have not gotten a quote. Fixing the paint here would leave a few minor scratches on the bumpers and a blemish here and there (just the normal from everyday use in parking lots, etc.)

The dealer of course has resources to fix the paint more cheaply than we would. However, in terms of maximizing the trade-in value, would it make sense to address these issues? Kelly Blue Book suggests that the we would get more than $1000 difference on trade-in, however this is a broad brush view from fair to good to very good condition that accounts for a lot of variation in condition. I would judge mechanically the car is in very good to excellent condition apart from cosmetics.

Anyone have insight here? Thanks in advance.
JLJL
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by JLJL »

If I were in your situation I would look at options to get the most for the car on a private sale and not try to execute a trade in. This is because the expert negotiators at the dealership will use the trade in as a tool to get a higher price for the new car or gouge you (sorry no pun intended) on the trade.

Many people are using craigslist these days. I sold a car once using Autotrader, a sign in the window, and word of mouth. The sign generated tons of calls from people who wanted to get a steal but were dejected when I told them the price, I eventually sold it word-of-mouth for vastly more money than what the dealer offered on a trade (in that case, trading down which was more complicated).

Better yet, if you are in an area that has a Carmax, I sold 2 cars this way a few years ago. Specifically I got $15K for a car that I thought would get $16.5K if I had time to market it and sell it privately. This was VERY easy, and generated a good "wholesale" price for the car. Just take it to them and they will give you an offer valid for ... days. They may even tell you what the deduction was for the scratch, in which case you could decide whether or not it is worth it to fix it.

For buying the new car (assuming it is new) I would use the method many people on here use which is to negotiate completely via internet sales with the sales managers regionally on a cash sale. Couple good threads out there but this one was very good (as is the fatwallet link within):

t=124638

Sorry for only partially answering your question but these answers should be in alignment with your goal of getting rid of your current car and getting a new car and having the most money left over at the end.

JL
Last edited by JLJL on Mon Apr 20, 2015 3:59 am, edited 1 time in total.
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wjo
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by wjo »

In my state, taxes on the new purchase are reduced by the amount of the trade in. This cuts into the value of a private sale...when you add time and hassle dealing with private parties, it isn't worth it to me. I have used car max before to get a quote on my trade...they are good.

The base question is is it worth it to get the cosmetics addressed? My gut says yes provide I pay less than $750 or so, but I lack direct knowledge of how a dealer would value it.
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TomatoTomahto
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by TomatoTomahto »

My thought in the past has been to not do cosmetics. The buyer can fix them at wholesale, you're paying retail. My guess is that at best it's a wash.
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Jack FFR1846
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by Jack FFR1846 »

Expect the difference between what a dealer will give you at trade in and private party to be about 30% of the dealer's offer. So if the dealer offers $10,000, you will end up with $13,300 from a private party. I would tend to not do costly repairs before selling. Say it costs you $700 to fix it. You may run into a buyer who is priced out of your car at $14,000 but would have been perfectly happy paying $13,300 and living with the scratch. You may also want to get a body shop estimate. We had scratches and a minor dent on an 09 Fusion. Appeared to be maybe $500 in damage. Actual cost was $2500. You dont know by just looking at it.
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Browser
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by Browser »

Have a similar problem. Car was sideswiped while parked and rear door damaged. Insurance co. cut me a check for $1200 ($500 deductible) and I can repair the car for about $1700. Estimate wholesale at $4000 and retail at $5000 if it were undamaged. I can either spend the $1700 to fix it or keep the check for $1200 and try to sell it in damaged condition. I'd break even over fixing it if I could trade it for $1300 (wholesale value) in damaged condition or sell it for $2300 retail on Craigslist. If I could do $1800 wholesale or $2800 retail without fixing it, that would negate the $500 deductible. However, I have no idea whatsoever what I could get for this vehicle if I try to trade or sell it in damaged condition, and that's the wildcard. I figure that if I sell it on Craigslist, the buyer would be someone who does not intend to fix it and just wants cheap transportation. What's my best choice here?
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midareff
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by midareff »

Why don't you take it to CarMax or other national outfit and have it appraised for purchase. They offer higher $ than a dealer trade and should give you a better idea of value. They don't charge for this. You can use that price offer as leverage in your negotiation.
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batpot
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by batpot »

if you were selling privately then cosmetic issue would matter, but to a dealer, they don't really care.
Wolkenspiel
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Re: Trading in a car - worth it to fix cosmetic issues?

Post by Wolkenspiel »

batpot wrote:if you were selling privately then cosmetic issue would matter, but to a dealer, they don't really care.
I once traded in a car that had a slightly scratched/deformed rear lower bumper from a light rear impact. The dealer didn't say a word about it and the trade-in value was more or less in line with whole-sale expectations.
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