I've been toying around with trading in my 05 GT for a while, so last Friday I went to Serramonte Ford in Daly City to see what the damage would be. $16,000 for my 05 GT (it's the discontinued Sonic Blue color by the way)! The car only has 3800 miles. They're telling me it lost nearly 50% of it's value!

Edmunds says I can sell my car to a private party for about $23,500. I see no reason why the dealer can't pay me that amount too because Edmunds also says the dealer can sell it for $25,000. The invoice on an 06 I'm interested in is $25,730. I've been reading that people are getting their cars a few hundred below invoice nowadays. So let's say I want to buy the new 06 for $25,430. Is it reasonable to ask to buy it for $1930 with my trade-in? Or is the value given on Edmunds not realistic?

 

You'll most likely never get private party value on dealer trade-in. That is an unrealistic expectation. However, $16K is also a lowball offer as well ..

I think you may be a bit unrealistic on what you're expecting to get on trade, and what you'll end up paying for the new one ... Why do you want to trade anyway?

 

Kelly Blue Book has the trade-in value for excellent condition at $23,050 fair condition is $21,755. But people very seldom get these numbers when trading in a vehicle. Good luck.

 

<div class='quotetop'>QUOTE(hpaddict @ February 11, 2006, 4:50 AM) Quoted post</div><div class='quotemain'>
I've been toying around with trading in my 05 GT for a while, so last Friday I went to Serramonte Ford in Daly City to see what the damage would be. $16,000 for my 05 GT (it's the discontinued Sonic Blue color by the way)! The car only has 3800 miles. They're telling me it lost nearly 50% of it's value!

Edmunds says I can sell my car to a private party for about $23,500. I see no reason why the dealer can't pay me that amount too because Edmunds also says the dealer can sell it for $25,000. The invoice on an 06 I'm interested in is $25,730. I've been reading that people are getting their cars a few hundred below invoice nowadays. So let's say I want to buy the new 06 for $25,430. Is it reasonable to ask to buy it for $1930 with my trade-in? Or is the value given on Edmunds not realistic?
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A $1930 trading difference probably wouldn't be a fair trade from a used 2006 to a new 2006 let alone a 2005 to 2006. After the dealer spends the money to doll up, advertise the car and pay a salesperson a commision to sell it that will eat up at lease $500 of the $1930 difference. To make $1,000 dollars they'd have to sell your used one for about the same as you want to pay for the new one. I personally wouldn't pay more than $2,000 under invoice for a used current year car and would want to be at least $4,000 under invoice for a year old car. Granted, $16,000 is low but most dealers would want to pay around $19,000 and be able to get $21,000 - $22,000. That would leave it $3-4,000 less than the new car.

Just my $.02.

 

<div class='quotetop'>QUOTE(Karpro @ February 11, 2006, 10:00 AM) Quoted post</div><div class='quotemain'>
A $1930 trading difference probably wouldn't be a fair trade from a used 2006 to a new 2006 let alone a 2005 to 2006. After the dealer spends the money to doll up, advertise the car and pay a salesperson a commision to sell it that will eat up at lease $500 of the $1930 difference. To make $1,000 dollars they'd have to sell your used one for about the same as you want to pay for the new one. I personally wouldn't pay more than $2,000 under invoice for a used current year car and would want to be at least $4,000 under invoice for a year old car. Granted, $16,000 is low but most dealers would want to pay around $19,000 and be able to get $21,000 - $22,000. That would leave it $3-4,000 less than the new car.

Just my $.02.
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He's right $16k is low $17k to $19k is about right. They will advertise it for 23,999 and settle for about $22k. They are in business to make money, selling cars is just how they do it.

 

I suspect what your dealer is really saying to you is that they don't want another Mustang on their lot... they will send it to auction. I agree that is an insultingly low offer for a low miles 05 GT.

I've had a lot of experience with this on MINIs, but not with Mustangs.. I think you can do better. I don't know where Daly City is, bt if you are near a major metropolitan area there's probably a Car Max or AutoNation or similar big certified pre-owned dealership nearby. They will make an offer on your car that is likely to be the high end of trade-in value to very low private sale.

It will take about an hour of your time, and of course you don't have to sell. I'm trading my 05 MCS (a $28k car) that I've had for 18 months with about 10k miles for an 06 MCS vert, but I didn't get a great offer from Car Max or Driver's World however, because people shopping for used cars generally don't understand the MINI and think it's too small. The guy told me they have 1 and tho people look at it -no buyers for months. I think the Mustang is different- I think it's very saleable on a used car lot, so I would expect better results for you. I'm getting $21.5-$22k from my dealer as trade-value, but then I've bought 3 cars there in 4 years.

I also wonder why you would trade a 05 GT for an 06 GT.. there's almost no difference! If you were going from a V6 to a GT, or from either to a vert, I'd understand.. but what you have is nice!

You could probably do best by trying private sale, but it takes a lot of time and hassle usually.

I hope this is helpful!!

oh-and may I add that the most ironic thing is there's more room inside the MINI than the Mustang!! go figure.. =)