OT: Car Trade-In

[Hey Adrien!]

I'm getting offers from the place where I bought my '16 Mazda CX-5.

Current Car:

2016 Mazda CX-5
72k miles
$440/month til 11/23
$9240 remaining
Repairs needed: rear brakes, broken left speaker

Car offered:

2022 Mazda CX-5
$370/month til 2/27
$20738 drive out price, $0 down
Net $11498 cost

I'm not a car guy, but it seems like a good deal. What do you all think?

I have an appointment on Thursday to check out potential cars.

 

[87Xfer]

Yeah, that seems like a pretty solid opportunity to get into a much newer car.

 

[Kathy]

I'm getting offers from the place where I bought my '16 Mazda CX-5.

Current Car:

2016 Mazda CX-5
72k miles
$440/month til 11/23
$9240 remaining
Repairs needed: rear brakes, broken left speaker

Car offered:

2022 Mazda CX-5
$370/month til 2/27
$20738 drive out price, $0 down
Net $11498 cost

I'm not a car guy, but it seems like a good deal. What do you all think?

I have an appointment on Thursday to check out potential cars.

Do they know it needs rear brakes and has a broken speaker?

 

[Hey Adrien!]

Do they know it needs rear brakes and has a broken speaker?

Don't ruin the secret!

I haven't brought in the car to the dealer. All of the numbers I listed above is what they mailed to me and what was discussed over the phone. However, I expect a thorough look-through of my car at the dealer on Thursday.

The good news is that the dealer that I'm working with (Mazda of New Rochelle) has a nearly unanimous strong rating on their honesty, etc. I don't like car dealerships (who does?) and when we bought the '16 (pre-owned) I liked how low-key everyone was.

My particular favorite was when the guy who took us on the test drive wanted us to try out the Bose Soundsystem and thought I wasn't listening to the music loud enough to get the full effect so he persuaded me to turn on Hot 97 and crank up the bass in a particularly tony part of town. He said something like make those rich folks FEEL the Bose! It cracked me up.

 

[JMick]

I'd just be careful. Most of the time when a dealer is doing this, it's just to get you to the dealership and then the "deal" they offered you isn't available (they just sold the car, someone is currently on a test drive, etc.) and they try to upsell you to something else.

Why don't you just research the private party value of the car and then see what you could sell it outright for, and then do the math on payments?

The dealer isn't doing this out of the goodness of their heart. It's a business.

 

[bigknight3]

What trim package are each of the vehicles?

 

[Husky Alien]

Do they know it needs rear brakes and has a broken speaker?

That should not be much of an issue for the dealership. They will have to go through the vehicle if they put it on their lot. Not much of expense for them.

 

[methodology]

I'd just be careful. Most of the time when a dealer is doing this, it's just to get you to the dealership and then the "deal" they offered you isn't available (they just sold the car, someone is currently on a test drive, etc.) and they try to upsell you to something else.

Why don't you just research the private party value of the car and then see what you could sell it outright for, and then do the math on payments?

The dealer isn't doing this out of the goodness of their heart. It's a business.

With used car prices and the low inventory along with the lower profit on new cars dealerships are giving great deals to get used cars on the lot. Used car prices have gone up like 30%. A $15k car last year is almost $20k now

 

[CL82]

Keep in mind that used vehicles are in demand so don’t just rely on the bluebook value. Google your car and see what similar models are being sold for at this time.

 

[JMick]

With used car prices and the low inventory along with the lower profit on new cars dealerships are giving great deals to get used cars on the lot. Used car prices have gone up like 30%. A $15k car last year is almost $20k now

Yeah I know. Guess what, it's also worth more if you sell it privately.

 

[methodology]

Yeah I know. Guess what, it's also worth more if you sell it privately.

You won’t get a crazy price above maybe a couple grand and it could sit in your driveway for a month or months. Then you are putting on miles and devaluing the vehicle more.

Dealerships service the vehicles and most offer you 30 day coverage or a few year power train warranty.

I would never trust a private seller to service their vehicle correctly and there is no warranty or any recourse. So when I buy private I pay cash and I’m offering you 2 grand below private value plus I bring my mechanic and he picks everything apart. I either tell the owner here’s a list of what needs to be fixed or take my offer minus the cost of parts

 

[Improviser]

If you choose the private party route to buy a car, you can go to carfax.com and provide the vin#, and then can find out it the car was in any prior accidents and the amount of damage.

Nothing devalues a car more than prior property damage. The idea of having a mechanic check a used car is a great idea.

Having said this, getting a new car in itself sounds like a good way to go. With the new car, you get at least a 3 year, 36,000 mile warranty from the manufacturer. Do you know the finance/interest rate on the new car offered?

And as a prior poster above noted, used car values have skyrocketed the last year and probably will continue to do so with the ongoing supply shortages. A new car is a new car and probably has better safety features than your current model.

Wish you well.

 

[XLCenterFan]

Buy a Honda brand new and ride it til the wheels fall off. Smartest financial decision I ever made.

 

[Mots010]

Does it come with the TruCoat? It will save you from oxidation.

Seriously though, I’m on board with XLCenterFan. Run your car into the ground. I’m pushing 15 years with my Xterra, and 13 years with my wife’s Subaru.

 

[Dream Jobbed 2.0]

Yeah if you can get that deal do it. My wife drives/the family hauler is a 2018 CX5. You missed a complete overhaul by a couple years on the 2016.

 

[Improviser]

I love my 2017 Subaru so I agree on the Subaru as an alternative.

Honda is a great car, but like the Toyota Prius it is a car targeted by thieves who steal catalytic converters during the night. This has been happening frequently in the New Haven area and I suspect in other areas of the state.

If the car is garaged, fine.

Best deal is the one you were offered at the dealership.

 

[methodology]

Also keep in mind say you decide to keep your current car and decide in 2 years you want to trade in if you are at 100k miles car values take a big hit once they hit that mark

 

[huskiesNhoos]

I too have '16 cx-5, and it's been solid yet unremarkable which is fine by me. I'd be interested in the newer model for the turbo and the brakes. Only issue I've had with mine has been the brakes wore out a bit fast and required some troubleshooting to figure out why they were squeaky all the time (caliper pin isn't lubed out of factory) but easy fix.

I have less miles on mine, but I like not having a car payment so that'd be a big factor in my decision...reliable car with no major issues trumps 4 more years of payments for me. Also, rear brakes is about the easiest/cheapest job you can do...just remember to disengage the electronic parking brake!

edit: just saw starting price is 25,900? pretty solid deal there 5k+ under msrp

 

[JMick]

Also keep in mind say you decide to keep your current car and decide in 2 years you want to trade in if you are at 100k miles car values take a big hit once they hit that mark

It's not 1960 anymore. No one cares if the car is at 95,000 or 105,000 miles.

 

[JMick]

You won’t get a crazy price above maybe a couple grand and it could sit in your driveway for a month or months. Then you are putting on miles and devaluing the vehicle more.

Dealerships service the vehicles and most offer you 30 day coverage or a few year power train warranty.

I would never trust a private seller to service their vehicle correctly and there is no warranty or any recourse. So when I buy private I pay cash and I’m offering you 2 grand below private value plus I bring my mechanic and he picks everything apart. I either tell the owner here’s a list of what needs to be fixed or take my offer minus the cost of parts

You're really bad at buying and selling cars, then. A used car in this market will sell in a week

 

[Hans Sprungfeld]

Buy a Honda brand new and ride it til the wheels fall off. Smartest financial decision I ever made.

Do you have to let the wheels fall off?

 

[methodology]

You're really bad at buying and selling cars, then

No I’m not actually seeing I know 4 people who own used car dealerships in CT and I can go to auction anytime I want. Plus they tell me the main things to look for and yes 100k is still a benchmark for pricing used cars. The consumer will pay more for a car under 100k and a lot of dealerships wholesale cars they take on trade if they are over that 100k threshold cause it’s a benchmark

For instance McDermott Lexus wholesales most of their trade ins they take in with over 100k to trolley square in Branford and sound auto in east haven

 

[JMick]

No I’m not actually seeing I know 4 people who own used car dealerships in CT and I can go to auction anytime I want. Plus they tell me the main things to look for and yes 100k is still a benchmark for pricing used cars. The consumer will pay more for a car under 100k and a lot of dealerships wholesale cars they take on trade if they are over that 100k threshold cause it’s a benchmark

For instance McDermott Lexus wholesales most of their trade ins they take in with over 100k to trolley square in Branford and sound auto in east haven

Lol yeah let's take advice from used car dealership owners. The people that deal with folks who have no credit or awful credit and regularly rip people off with flood cars and lemons.

 

[Pawsox]

Recently traded in a 2017 Hyundai Sante Fe Ultimate on a 2022 Hyundai Palisade. Got $26,500 on trade and noticed they had it listed at $36,000 on-line the next day. Whatever they offer you on trades now, add a few thousand to your offer, because thay are making a killing on used cars now.

 

[NJHusky]

Keep in mind that used vehicles are in demand so don’t just rely on the bluebook value. Google your car and see what similar models are being sold for at this time.

But used car prices are up because lack of inventory on new cars