How would you make this deal?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
four7s
Posts: 306
Joined: Thu Oct 23, 2008 11:37 am

How would you make this deal?

Post by four7s »

In April I purchased a 2020 Sienna LE minivan from a dealer. It had 6,500 miles and was a VIP loaner vehicle. I bought it for one reason only. My wife and I are in our 70’s and we sold our home and moved across the country to Florida with our two cats and we needed a super safe dependable car with space for the cats yadayada to drive the 2610 miles to our new home. Mission has been accomplished and humans and beasts have safely arrived. Now, we no longer need a minivan and would prefer a low mileage RAV4 or CRV instead. I’d like to work a trade of some sort with a dealer for a smaller vehicle but I don’t have a clue how to structure a ‘deal.’ We owe about 19Gs on the Sienna. Any advice will be appreciated. I’m not trying to get anything other than a fair deal and a win win for us and the dealer, too. Thank you. PS if you’re thinking this move at our age with two cats is the craziest thing you’ve heard lately....you may be right😎🙀
HomeStretch
Posts: 6858
Joined: Thu Dec 27, 2018 3:06 pm

Re: How would you make this deal?

Post by HomeStretch »

Congratulations on your cross country journey and new home/state!

Due to new car chip shortages, it’s an easy market to sell a vehicle but a tougher market to buy a new or used vehicle. The sale and purchase do not have to be done with the same dealer (although in my state trade-in value is exempt from sales tax). Consider finding a vehicle you like and negotiating the best deal possible in today’s market. Separately negotiate the best price possible from the same dealer for a trade-in. Shop around to see if you can get a better sale price from CarMax, Carvana, Vroom, etc. Take the best sales price (adjusting the dealer price for any sales tax reductions for a dealer trade-in).
User avatar
ResearchMed
Posts: 12354
Joined: Fri Dec 26, 2008 11:25 pm

Re: How would you make this deal?

Post by ResearchMed »

four7s wrote: Sun Sep 12, 2021 5:59 pm In April I purchased a 2020 Sienna LE minivan from a dealer. It had 6,500 miles and was a VIP loaner vehicle. I bought it for one reason only. My wife and I are in our 70’s and we sold our home and moved across the country to Florida with our two cats and we needed a super safe dependable car with space for the cats yadayada to drive the 2610 miles to our new home. Mission has been accomplished and humans and beasts have safely arrived. Now, we no longer need a minivan and would prefer a low mileage RAV4 or CRV instead. I’d like to work a trade of some sort with a dealer for a smaller vehicle but I don’t have a clue how to structure a ‘deal.’ We owe about 19Gs on the Sienna. Any advice will be appreciated. I’m not trying to get anything other than a fair deal and a win win for us and the dealer, too. Thank you. PS if you’re thinking this move at our age with two cats is the craziest thing you’ve heard lately....you may be right😎🙀
Take the Sienna to CarMax for starters and see what they will offer.
They may not offer the very top "deal", but it will be reasonable, and it could not be easier with them. Their offer is usually good for one week, assuming the vehicle is in the same condition.
You can do some of this online for approximations.
Then also see what they have available for sale.

And then... take it to a dealer to see what you could get in a trade for a car you want.
How many places you go depends upon how much you want to maximize total "value" (at the expense of your time and energy) vs. "satisficing" :happy

Others here will have other suggestions.

And we see absolutely no problems with the little fuzzies :wink:
We are of similar ages, and used to have, um, several, but they are all in kitty heaven now. :(

RM
This signature is a placebo. You are in the control group.
psteinx
Posts: 3894
Joined: Tue Mar 13, 2007 2:24 pm

Re: How would you make this deal?

Post by psteinx »

Because of the current chip/car shortage, if you want a CR-V/RAV4, you're probably better off new than used.

You could get a sense of what someone is actually willing to pay for the Sienna by going to Carmax, or using various online sites that offer a cash value for your vehicle. But, it might be simpler, especially if you have 4+ Toyota dealerships within easy driving range, to just identify what trim level of RAV-4 you'd like, and see which dealer will give you the lowest OTD (out the door) cost for a swap. That way, you're not confused about whether you're getting too much/too little for your trade, relative to the price you're paying for the new vehicle, etc.

If you need financing, have something nice lined up ahead of time. If the dealer can beat that, great. If not, use your own financing.

Learn about the local taxes and fees ahead of time. In some places, those are paid to the dealer, in others, directly to the state. Understand the process and the amounts, and make an apples to apples comparison among dealership options/offers. And yes, dealers will likely try to add on junk options (floor mats), junk services (VIN etching, mediocre warranties), and just straight up fees (dealer fees, market adjustments, etc.) That stuff doesn't really matter. Value any add-ons at their value to YOU (not supposed dealer cost) - that value will likely be near $0. Compare the overall OTD price, with trade-in. Compare across multiple dealerships. Don't succomb to excess pressure.

Note that inventory may be low - you may need to wait a while to get what you want, or accept different color/trim level from your preference. Again, you can roll this in to your overall evaluation. i.e. Dealer A offers an all-in, OTD cost of $17500, factoring in the trade. Dealer B is at $17800, but we like the color of the vehicle a little better at B, or it has a couple of options we value at >$300, or whatever...
Last edited by psteinx on Sun Sep 12, 2021 8:38 pm, edited 2 times in total.
psteinx
Posts: 3894
Joined: Tue Mar 13, 2007 2:24 pm

Re: How would you make this deal?

Post by psteinx »

Also, re: owing on your current Sienna. Dealerships are quite used to this. If you trade-in the Sienna, they will pay off the loan. Of course, the trade-in value is reduced by the loan amount. I'm not sure what a lightly used '20 Sienna LE goes for now. Used car values are high. Maybe $30K or so? Net of the $19K you owe, you'd have $11K in equity. Of course, my # is a wild guess. And again, you're really concerned with the net OTD price of new vehicle with trade value netted against it.
User avatar
Watty
Posts: 23453
Joined: Wed Oct 10, 2007 3:55 pm

Re: How would you make this deal?

Post by Watty »

ResearchMed wrote: Sun Sep 12, 2021 6:26 pm Take the Sienna to CarMax for starters and see what they will offer.
You can also get an online offer from CarMax or Carvana in about five minutes.

About four months ago I had a three year old Corolla that I did this for and CarMax offered me more than I had paid for it when it was new. I ended up trading it in on a new Subaru Forester. Here is a post about how that worked.

viewtopic.php?p=5972344#p5972344

Knowing how sales tax works in your state is very important. In my state the sales tax is only reduced but the trade in value at a dealership so selling the car yourself adds a lot to the cost.

I seemed to get lucky and did that just before the chip shortage got as bad as it is now so I was able to get a good deal on the Forester that you likely cannot get now.

People tend to think that their cars are the best thing since sliced bread and I am no different but I am very happy with the Forester so far so you may want to consider adding that to your list of cars to shop for. It is usually ranked well on the lists of best cars for seniors if part because it has really good visibility compared to a lot of cars that they make now.

In this car market I would also keep an open mind about other similar cars from manufactures like Mazda, Hyundai, Kia, and even Ford. At the right price your third or fourth choice car is likely a better deal.
psteinx
Posts: 3894
Joined: Tue Mar 13, 2007 2:24 pm

Re: How would you make this deal?

Post by psteinx »

Watty wrote: Sun Sep 12, 2021 8:55 pm In this car market I would also keep an open mind about other similar cars from manufactures like Mazda, Hyundai, Kia, and even Ford. At the right price your third or fourth choice car is likely a better deal.
Sort of.

Keep in mind that vehicles in the same category (say, small sedan or SUV/CUV) and trim level (base, mid-level, premium) can be rather different across makes. Don't get too excited about the great price you can get on <insert 2nd tier make> until you actually get inside one and take it on the road. It may feel cheap compared to a similar Honda.
mr_brightside
Posts: 493
Joined: Sat Oct 17, 2020 3:23 pm

Re: How would you make this deal?

Post by mr_brightside »

just curious why you didn't rent one for a couple weeks ?

anyhow -- dealers do this kind of thing all the time. availability is going to be an issue though. car inventory is tricky these days -- especially the more specific you get in terms of make / model. selling the vehicle to Carmax / Carvana -- or at least getting a quote from them definitely bears looking into. I would imagine that van would get a good price.

be sure yo look at the Mazda CX5 also.

good luck --

------------------------------------------
Topic Author
four7s
Posts: 306
Joined: Thu Oct 23, 2008 11:37 am

Re: How would you make this deal?

Post by four7s »

Thank you for all your advice. Maybe I’ll drop by the dealer, play dumb, and see what they offer and then make a plan.
A poster asked why I didn’t just rent a car. That was the original plan—I made a reservation for a large 8 passenger van and committed to the price early on and checked it out online every so often. All of a sudden one day my inquiry said,
‘ Sorry, this vehicle is not available for your dates”
The car rental industry has been a mess during this pandemic and we chose to chart our own course and not rely on anyone but ourselves.
itaos
Posts: 62
Joined: Tue Aug 10, 2010 10:58 am

Re: How would you make this deal?

Post by itaos »

It'll take 10 min to get online offers from Carvana and Vroom. They are surprisingly easy to deal with.

You can then bring these offers with you to the dealership when playing dumb to be better informed.

Depending on the model, many new vehicle prices are near Msrp if not over. Model specific message boards will help you with current pricing.
Post Reply