Current Events > If they are offering more for my car than i paid for it, are there downsides?

(+) Yeah! (+)

I feel like this is a trap...

I guess it depends on what you're doing for a replacement car. Maybe interest rates on car loans are high right now so you'll end up paying more over the lifetime of your new car then you would make and keeping your current one. There's also still a pretty large supply shortage, which is why they're offering so much for your car in the first place, so I would make sure that whatever other car you're going to get is actually available before you commit.

Who is "they"?

Pretty sure pricing for used cars has exploded and inventory is slim, so it's not really surprising.

You might become TOO wealthy!

It's the dealer I bought my current car from 2 years ago. They basically wanna do a 1 for 1 trade in for the newest model.

lilORANG posted...

It's the dealer I bought my current car from 2 years ago. They basically wanna do a 1 for 1 trade in for the newest model.

So they're going to take your used to car and in exchange you're going to get a brand new car of the same make and model?

That.. doesn't sound right. Are they giving you the same amount, or are they saying you'll have the same monthly payment? It's possible the deal involves taking a longer term loan on a more expensive car, so in the grand scheme of things you'll end up paying more than you would otherwise.

lilORANG posted...

It's the dealer I bought my current car from 2 years ago. They basically wanna do a 1 for 1 trade in for the newest model.

No that sounds about right because the car market is completely bonkers right now.

s0nicfan posted...

So they're going to take your used to car and in exchange you're going to get a brand new car of the same make and model?

That.. doesn't sound right. Are they giving you the same amount, or are they saying you'll have the same monthly payment? It's possible the deal involves taking a longer term loan on a more expensive car, so in the grand scheme of things you'll end up paying more than you would otherwise.

This could just be a case where the dealership plans to make up the money elsewhere. But yeah I'd obviously confirm what the dealio is.

The car market is ridiculous right now. I can only imagine they would do that because some weirdness with existing agreements with the manufacturers that keep them from selling new vehicles for way over MSRP.

Go to Car Gurus and look up Hyundai Palisades to see what I'm talking about. You can order a new SE AWD for $37,000..... or you get one with 6,000 miles on it for 44,000.

Its possible that they actually will be able to sell your car for more than they are allowed to sell a new one for because of weirdness. These are strange times. Pre-pandemic your car would lose thousands of dollars in value as as you purchased it but now we are in very strange times and a lot of cars weirdly are worth more to a dealership used than new.

Atralis posted...

The car market is ridiculous right now. I can only imagine they would do that because some weirdness with existing agreements with the manufacturers that keep them from selling new vehicles for way over MSRP.

Go to Car Gurus and look up Hyundai Palisades to see what I'm talking about. You can order a new SE AWD for $37,000..... or you get one with 6,000 miles on it for 44,000.

Its possible that they actually will be able to sell your car for more than they are allowed to sell a new one for because of weirdness. These are strange times. Pre-pandemic your car would lose thousands of dollars in value as as you purchased it but now we are in very strange times.

Bingo. One of my friends used to work for a Ford dealership and they were hard capped at a certain amount over sticker for new vehicles.

Honestly I you might be able to haggle for a new car and money in the current market.

I've had my dealership in the past try to buy me out of a lease early because they need more used cars on the lot and have an abundance of leaseable new cars.

But I'm not sure if that's what is happening here.

Anteaterking posted...

I've had my dealership in the past try to buy me out of a lease early because they need more used cars on the lot and have an abundance of leaseable new cars.

But I'm not sure if that's what is happening here.

Nah that's normal. I'm actually surprised it hasn't happened to me yet, even only one year into a lease, given what the used car market is like.