11-26-2020, 06:34 AM | #1 |
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Ever trade a car less than a year old?
Curious how big a beating one takes if they buy a car and decide that they want something else.
Last summer I bought a 2020 Porsche Cayenne. Let me say it does everything they claim. Drives great. Handles, accelerates, corners, everything is tight. I have only two complaints. One is the electronics in the car are inferior to the ones I had in my 2017 540i. So I assume newer BMWs will be even better yet. Not that I'm certain I would get a BMW just saying a step down in that area wasn't what I expected. And I use them more often than I use the Porsche's amazing handling. The other is the payment. Yeah I can afford it. Question is - why? I've had this since June and put 4500 miles on it. It isn't as if I need an expensive car and my needs would be filled with a Honda Passport. Not that I would get the Honda just saying. As to the payment it is large since I returned a leaser and put 0 down on it. Druther have a lower payment and perhaps leasing a BMW will cut the monthly in half although I recognize I build no equity. I'm not ready to bail but curious if anyone in the business reading this can give an idea of how bad I get hit if I walk from the Cayenne this early. I see a few similar ones listed for sale at around $73k but not many available. Oh and - HAPPY THANKSGIVING |
11-26-2020, 09:01 AM | #2 |
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You're gonna get killed, face it.
I'd suggest spending ten-minutes at a Carmax to get an actual cash offer on it before you try trading it to cut your payment in half. Ha! What are you planning on buying, a used X1? Not only will you build no equity, you likely have a huge negative equity following you around now that may actually be better handled by adding it to another lease. It may or may not offer a lower payment than your current finance payment but at least it will pay off your negative at the end of the term without worrying about the end value. Your Cayenne will continue to depreciate more rapidly than your ability to pay off the principle. |
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Murf99314114.00 |
11-26-2020, 09:36 AM | #3 |
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Yea, the first 2-3 years are the biggest depreciation hit - and like mentioned above - that car will depreciate faster than you can pay down the principle. You need to run all the numbers - getting out of that payment may actually cost you more in the long run than if you kept it for another year or two (maybe).
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11-26-2020, 09:53 AM | #4 |
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My dad recently passed away, and mom doesn't drive, so we decided to sell their car. Went to CarMax this past Monday, expecting the place to be a ghost town. Luckily I made an appointment! I counted 5 other people selling cars to CarMax while I was there. New cars too, like a loaded A6 and a humongous Cadillac SUV of some kind. It was pretty eye-opening to me. People are either bored, or their financial situations are bad.
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11-26-2020, 11:44 AM | #5 |
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Have you ever thought of putting it up on Bringatrailer.com
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11-26-2020, 12:20 PM | #6 | |
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11-26-2020, 12:21 PM | #7 | |
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In regards to the large numbers of people my guess is most are in financial situations. The boredom factor shouldn't be any higher now than normal. |
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11-26-2020, 12:24 PM | #8 | |
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And yeah I got it that I might take a hit. If it is just $5-10K might be worth it. |
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11-26-2020, 12:25 PM | #9 |
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11-26-2020, 12:31 PM | #10 |
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Yeah, I’ve done it too many times (over 30), lol...
I get tired/bored/annoyed with my cars & motorcycles. It’s the only two things I get bored with. Yep, it will cost ya. Price u have to be willing to pay... It’s weird; I don’t get bored, tired, or annoyed with any one of my other indulgences. I buy a new car every year and a new motorcycle every other year. Been doing this since 1990. I hope to stop this madness if & when I’m content; However, that goes against Benjamin Franklin’s principle... Cheers & Happy Thanksgiving to all, P.S. Prayers to those who need it! B
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11-26-2020, 12:34 PM | #11 |
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its gonna hurt a bit trading in / selling a brand new car. especially a high end luxury item that isn't limited. best bet to find out how much it would be worth is checking autotrader and see what people are selling them for.
also i'm not sure how sales tax works in your area. in my state we get a sales tax credit. so if you sell a 70000 dollar car, then purchase a 90k car in 6 months you only pay taxes on 20k. some states i think you are forced to trade in to a dealer to get this credit. some states don't have it at all.
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11-26-2020, 12:37 PM | #12 | |
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BTW I used to be like you but with guitars. Man did I shuffle through a gaggle of different guitars until I found the ones I was happy with. Now I am about 4 years since I last bought one and have no urge to look. Thanks |
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11-26-2020, 12:38 PM | #13 | |
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11-26-2020, 12:50 PM | #14 |
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Check out carvana as well. Two friends of mine sold their cars to them (albeit the cars were older) and they gave them a better deal that was much higher than any dealer or carmax.
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11-26-2020, 12:59 PM | #15 |
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Honestly surprised so many people like new cars, most of them shit me to tears with the beeping and warnings and beeping and beeping .... fucking leave me alone ya fucking pest.
Gonna run my 10 year old saab into the ground, at least it fucking shuts it's mouth. |
11-26-2020, 01:19 PM | #16 |
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Haven't done Carvana. Guessing it won't be high enough but "ya never know". Thanks
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11-26-2020, 01:29 PM | #17 |
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Once.
I wanted an '18 M2 that stickered for $57K, but the dealer wanted $65K for it. I bought an '18 IS350 FSport that stickered for $53K, but paid $38K for it. I waited nearly a year, found the right used '18 M2, and paid $49K for it, and got all my money back on the IS (Lexus knows resale, let me tell you). |
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11-26-2020, 03:14 PM | #18 | |
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My unsolicited opinion? Spend more time shopping and driving cars in the segment before choosing one, perhaps even look into a weekend rental. |
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11-26-2020, 04:12 PM | #19 | |
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On the contrary, why would you not just go to another BMW dealership rather than pay a 14% bump on an M2? Great that you got a deal on a year-old one later but that was only $5k to $7k off on a year-old car, depending on how it was equipped compared to the MSRP on the one you passed on. That's actually pretty good resale value! Which dealership thought they could get you for a 15% "adjustment"? Plaza? Autohaus? I've been selling BMWs for over 40-years and never had the balls to charge a "market adjustment". And I even bought a car from Autohaus (in 1973) back when Willy called it Webster Auto Service. |
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11-26-2020, 04:31 PM | #20 |
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In order to make a good decison you need good data. The best indicator of what to expect is to obtain the Manheim Market Report (MMR) on the Porsche. It's what most all dealers use for used car valuations and you have to be a dealer to obtain it. It calculates the average sale price for the vehicle across all dealer auctions in the country and tells you the average price It's bringing at that exact moment in time. Adjust up for what should be exceptional condition and down for the opposite. Hopefully someone involved in the business with access to this number will see this and help you out. I'm not involved in the business but an old neighbor of mine was a used car dealer who would take me to auctions from time to time. He educated me on some things and obtaining the MMR was one of them.
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11-26-2020, 05:32 PM | #21 |
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Do you have GAP insurance...😬
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11-26-2020, 06:30 PM | #22 | |||
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I was very specific about the options/color. |
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