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How Easily Could I Trade in a Car That is About to Go?

Discussion in 'BlackHat Lounge' started by sre94, Mar 13, 2009.

  1. sre94

    sre94 Junior Member

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    I have a 2001 BMW 330Ci which is absolutely possessed. The stupid thing blew a head gasket last year. I wanted to get a new engine, but someone convinced me to just fix it instead.

    Bad move.

    BMW recommends that you not do this, and I can see why now, because I see coolant coming out the exhaust pipe. Basically, the damn thing is going to stop running again, and probably soon.

    I still owe $14,000 on it. I know there is no way I am going to get that back for it, but at this point, I just want to get something. I could try to do a private sale before the stupid car dies, but I'd rather deal with a dealer instead on a trade in. I think they are less likely to come after me, plus they can absorb the loss better than an individual would (they could part it out, etc).

    So I guess my question is, how likely am I to get a decent trade in? I mean, how much does a dealer check out the car before doing a trade in? And, if the thing goes bad, will the dealer be able to come after me later?
     
  2. SleepieGirl

    SleepieGirl Regular Member

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    a dealer will give u a stupid low amount for it. less than blue book.
    id say $1000 to $2000 if its got a blown head gasket.
    if they take it as trade in they cant go after you later for it.


    are you near ohio? ill give u 3k for it.
     
  3. asyk

    asyk BANNED BANNED

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    Dealers arent stupid, they'll obviosuly inspect your car before they'll buy it. And obviosuly not buy if they see shit coming out of the exhaust. if all else fails sell it for parts, or scrap. you can get good money that way too.
     
  4. sre94

    sre94 Junior Member

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    Thing is, it's only smoking in the morning when I first fire it up

    Taking it to the shop tomorrow, hoping it's something else, but I would be shocked if it was
     
  5. SunTzuX

    SunTzuX Junior Member

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    How bad of condition is the car right now? Does it knock or make any odd noises? Can you visibly see the coolant coming out of the exhaust all the time? Only when the car has been running for awhile? Only when it starts?

    I have worked with several dealer groups and individual car dealers and they all have different policies towards how they inspect vehicles. Often it just comes down to whatever sales manager is working at the time.

    I have always been one to take the vehicle for a test drive around the block to check for transmission and engine issues, but I have worked with other managers in the past who simply do a quick walk around of the exterior, and then sit inside and start it up to listen for noises and check the AC/Heat. In this situation it's luck of the draw. In a BMW like yours I would expect they would probably drive it around the block just so they could have a little fun in it.

    A solution could be to do this late at night when it's dark, and park slightly away from lights. This could help the situation if the coolant isin't too noticable, and also help reduce scratches or marks that are visible.

    They will not come after you for anything once the deal is done. Once you have purchased a vehicle from them and the loan from the deal is funded by the bank you are good to go. The only thing they could possibly do is if you have shaky credit, claim they couldn't get the deal approved and cancel the deal but I would find that to be extremely unlikely.

    I once had a new manager I hired take an Escalade in on trade with 4000 miles, a simple carfax or autocheck would have shown a previous accident but for whatever reason he didn't pull it. We thought we stole it and in the end took about a $3000 loss on it since no one would touch it, it was like the plague. Slightly different situation since we found out later down the road, but you won't be the first or the last person who trades in a car with mechanical issues.

    As far as your owing $14,000 - whether they find the coolant or gasket issue or not, it sounds like your "upside down" in the car. They will likely play the game with you with you and tell you that they'll pay your car off in full (which they will). But they will of course add any negative balance that you owe to your new loan amount so keep that in mind.

    Your car deal is several seperate negotiations, not one.

    First - You are not trading in your car. Tell them that later. First negotiate the selling price of your new car. Do not talk payment only selling price. Figure $200-250 per month for every $10,000 financed. (Don't forget your going to be adding negative equity to that number later)

    Second - Your trade negotiation. Hit them with the trade bomb. Negotiate the price of the trade seperately, make sure you have written down the negotiated price of the car from earlier as paperwork can disappear. Bring the KBB and NADA values, find the blackbook value as well online if you can. If they catch the coolant issue, well you know the value will drop.

    Third Negotiation - Business manager / Finance office - You will be offered GAP Insurance. Take it. You shouldn't pay anymore then $500 for it, less if you can. Remember all products are negotiatble even your interest rate.

    I've been involved in the auto biz a long time so if you have any other questions about this let me know I'd be happy to help.
     
    Last edited: Mar 13, 2009
  6. jazz99

    jazz99 Regular Member

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    Why just keep it and put in a newer used engine. You can get certified used engines even with warranties for about the cost of a rebuild and the dealer won't give you shit for it the way it is now
     
  7. Black Hat Seo

    Black Hat Seo BANNED BANNED

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    14 grand on a 2001 3 series your interest rate must of been though the roof to still owe that much. I'd donate it to charity, you can generally get a write off larger than you would selling it or trading it in.

    Either that or come up with a bullshit story like it was originally owned by Neil Patrick Harris, or was once driven in a high speed chase by a drug lord with 500 pounds of cocaine in the back.

    If you google the year and make you might even find a news story of a celebrity getting arrested driving one of the same color high on meth, you could always say its the same car :)
     
  8. da buck

    da buck Regular Member

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    I actually sell cars so I have access to some auction reports. I'm guessing your car is a coupe so I based this info on that. Above average condition with about 59,000 miles they are selling for $10,000; average condition with about 100,000 miles are selling for $7,700; below average with about 141,000 miles are selling for about $5,500 miles.

    If you are definitely trading in the car, get some of the engine sealer and use it before you take it to the dealer.

    In response to the previous post about getting the best price then adding the trade, don't do it. That is what the "experts" tell you, but it really just keeps 95% of people from buying a car. It is a lot easier if you are up front the salesman, but make sure you do your homework. Right now it's really easy to buy a car for invoice or a little under (Chrysler products are at employee pricing). Offer the dealer $1000 under invoice. Make sure you get the price of your trade and the price of the new car. If they lump it together then you don't know either number. Be reasonable and don't be an ass. If you are easy to work with (not meaning a push over) they will be more willing to work with you.

    Hope this all makes sense. I'm a little tired right now.

    Always take Gap if you finance more than half the value of a new vehicle. It should be $500 or less. Get pre approved through your bank or credit union before you go to the dealership. Know what rate you qualify for (Don't just ask the bank what their rate is, ask them what you qualify for). Let the dealership try and beat the rate you were quoted. They may save you a couple percent.
     
    Last edited: Mar 13, 2009
  9. lee_s

    lee_s Registered Member

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    It depends whaat delear alot of major dealers do not check over there cars (I used to work for one). Give it a go what have you got the lose?
     
  10. calm

    calm Registered Member

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    How much did it cost to fix?
    maybe fix it again then sell it?
     
  11. wowhaxor

    wowhaxor Executive VIP Premium Member

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    Trade in or selling to a dealer is always a bad move, they offer you crap because they need to sell it and turn a profit.
     
  12. sre94

    sre94 Junior Member

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    Well amazingly, I went and got some Head Gasket Repair liquid, stuck it in the radiator, and voila... it was fixed.

    This was about 3 months ago. Car runs slow, but most importantly, it runs!
     
  13. Keedev

    Keedev Regular Member

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    Nice that you got it fixed.. I am almost due for a replacement in mine.. Just nearing my inspection II.. I have some horror stories from the BMW dealership.. I finally found a good local mechanic to look at my car and not charge me 80$ like the dealership would.. :slap:
     
  14. Viciousfish

    Viciousfish Regular Member

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    I'd say lots of insurance and an unexplained car fire would cure this problem....
     
  15. Keedev

    Keedev Regular Member

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    Hey I know just the man..
     
  16. DutchRebel

    DutchRebel Regular Member

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    i once torched my own car to get insurance moneey lol.

    i always had a lot of trouble with it and then the engine died on me.
    i just boosted it (made it look like it was anyway), towed it to some deserted field and set it on fire. 2 hours later the cops showed up at my door and told me it was stolen and burned to the ground.

    i was shocked to hear this awefull news offcourse haha,
    in the end the insurance company paid for the damages and i bought a new car.
     
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