How does custom ordering work when you have a trade in?

[Sine Language]

As the title says, I'm trying to find information in how custom ordering a wrangler (any vehicle really) works when you have a trade in also. When you place in the order, do you have to set up a loan for that vehicle at the time of ordering, or is that done when it arrives to the dealership? The trade in I have is my DD and the wrangler would be replacing it. Thus I'm trying to figure out if I do an order, will have two loans at the same time, or will it move from one vehicle to the other. Thanks!

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[DenaliDan]

Depends on the dealer but you don't have to setup financing when you place the order. That is done when you pick up your new Wrangler. As for the trade-in, that can really vary depending on the dealer. They might not want to give you a price on your trade-in without inspecting it on-site or they may do it with a lot of good photos. My dealer quoted me a trade-in value based on pics when I placed the order so I had it all planned out from the start. That quote was more that satisfactory in my case and they stuck to it. Just make sure you get everything in writing.

 

[Sine Language]

Thanks for the info, that really helps out a lot. Guess I'm going to have to start getting in touch with some dealerships.

 

[N8213]

Most dealers may want to run a credit check when you order a vehicle just to make sure your credit is appropriate for the price vehicle you are ordering. After that, no activity until the new vehicle comes in - at that point the paperwork is no different from buying something on the lot like any other car. They would simply manage the trade in, and any funds/debits from that on the loan for the new vehicle.

 

[Karl_in_Chicago]

You don't pay for the vehicle until you take delivery (and even then you can opt out). You will typically be asked to provide a deposit; the amount can vary but I wouldn't go past $500 at the most and absolutely make sure it's *refundable* (repeat that ten times!). If you intend to trade-in you can have the dealer appraise your vehicle and give you an estimate. There's a lot of variability here - some dealers will lock in that offer, assuming a cap on miles in between then and delivery and no accidents, etc. while some others won't (more of the latter). In any case, though, you should get a ballpark on what the dealer plans to give you for the trade. While you are waiting for delivery you should shop financing. Depending upon where you bank they might offer a decent rate or, quite often, you might find that joining a Credit Union is worth it as many of them offer aggressive rates with very little commitment on your part regarding minimum deposit and such. Armed with that you can then approach your dealer to see what financing they can provide and then compare them all. Sometimes if you finance with the dealer they have incentive plans that can further lower the vehicle price (or they just pocket it, you need to ask/demand). Now you can compare your various offers and choose the one that works best for you. That's a long post but it's still the short version of ordering and financing a vehicle. Good luck to you.

 

[N8213]

I ended up selling my trade in car privately right before my Jeep arrived. Getting a trade in estimate from Carvana/Carmax is also not a bad idea - at least gives you a back up value if the dealer tries to play games.

 

[Karl_in_Chicago]

I ended up selling my trade in car privately right before my Jeep arrived. Getting a trade in estimate from Carvana/Carmax is also not a bad idea - at least gives you a back up value if the dealer tries to play games.

It's going to vary by location. While frequently a private sale can net a higher price . . . here in Illinois, up until this year, it was usually better to take a slightly lower price from the dealer to reduce the tax hit. Prior to 2020 an Illinois car sale was taxed on the final net value of the transaction. Now there's a $10K cap on the amount the trade-in reduces the taxable amount, so I imagine a lot more people will be turning to private sales vs trade-in's (will also probably hurt dealer's used car inventories, too). So it is going to vary state to state; just run the numbers to find out what's best for your particular location.

 

[Sine Language]

You don't pay for the vehicle until you take delivery (and even then you can opt out). You will typically be asked to provide a deposit; the amount can vary but I wouldn't go past $500 at the most and absolutely make sure it's *refundable* (repeat that ten times!). If you intend to trade-in you can have the dealer appraise your vehicle and give you an estimate. There's a lot of variability here - some dealers will lock in that offer, assuming a cap on miles in between then and delivery and no accidents, etc. while some others won't (more of the latter). In any case, though, you should get a ballpark on what the dealer plans to give you for the trade. While you are waiting for delivery you should shop financing. Depending upon where you bank they might offer a decent rate or, quite often, you might find that joining a Credit Union is worth it as many of them offer aggressive rates with very little commitment on your part regarding minimum deposit and such. Armed with that you can then approach your dealer to see what financing they can provide and then compare them all. Sometimes if you finance with the dealer they have incentive plans that can further lower the vehicle price (or they just pocket it, you need to ask/demand). Now you can compare your various offers and choose the one that works best for you. That's a long post but it's still the short version of ordering and financing a vehicle. Good luck to you.

Thank you, a lot of this was already my plan and had figured out. I actually already bank with a credit union and had plans to get a loan through them, and then compare with the dealership what they could offer. The trade in value, I had plans to take it to carmax to get a ballpark idea of what I can get for it and just compare to what the dealer can offer.

The biggest thing now for me to figure out is what all I want exactly in my Wrangler lol. I am still trying to decide between the Sahara and Rubicon, as I don't ever really off-road but I camp a lot. Down the line, I might end up wanting to off-road, it's that what if scenario...

 

[Yngwie]

It's going to vary by location. While frequently a private sale can net a higher price . . . here in Illinois, up until this year, it was usually better to take a slightly lower price from the dealer to reduce the tax hit. Prior to 2020 an Illinois car sale was taxed on the final net value of the transaction. Now there's a $10K cap on the amount the trade-in reduces the taxable amount, so I imagine a lot more people will be turning to private sales vs trade-in's (will also probably hurt dealer's used car inventories, too). So it is going to vary state to state; just run the numbers to find out what's best for your particular location.

Good to know. We are ordering a 2020 JLUR here in IL, my wife has a dying 2003 Z4, and we are debating trading/private selling/donating. I don't want to deal with privately selling, so knowing we will get a little extra bonus on the tax side in IL for trading might swing us in that direction.

 

[JeepJLBase]

It's going to vary by location. While frequently a private sale can net a higher price . . . here in Illinois, up until this year, it was usually better to take a slightly lower price from the dealer to reduce the tax hit. Prior to 2020 an Illinois car sale was taxed on the final net value of the transaction. Now there's a $10K cap on the amount the trade-in reduces the taxable amount, so I imagine a lot more people will be turning to private sales vs trade-in's (will also probably hurt dealer's used car inventories, too). So it is going to vary state to state; just run the numbers to find out what's best for your particular location.

Do the math, it’s not really a significant amount for the buyer. Example, if your tax rate is .085 percent. That’s only $80.50/$1000.00 dollars. That amount is easily negotiable. The dealerships are going to lose money.

 

[RubiSc0tt]

The process is pretty painless if you've got a good dealer rep. If not? Find one. It's worth doing the legwork.

I kept it real open. I ended up talking to a local dealer contact my brother knew. Told him what I wanted and my number, showed him a few quotes i got from large volume mega Jeep dealers. He told me he'd find me what I was looking for and get as close to the number as he could (and he did).. I made sure to check and see that we had agreeable numbers in writing with and without trade in. I had their used car department give me a quote for the Jeep and made sure it was close to the number I wanted it, and asked questions about the mods. They were cool, and didn't really care. As long as it was a complete vehicle, according to the VIN (top, doors, bumpers, suspension) they were fine.I was trying to sell my old TJ on CL as is, but got no bites, so I ended up stripping it and trading it in. I pulled everything off that I could and sold it on CL to help finance the build of my JLUR.
I put down a $500 deposit to show the GM I was serious (because all custom orders went through him, I guess). and they ordered in on Day 2 of the 2019 order banks being opened. I would touch base about every 2 weeks for an update from my sales guy, and probably a week or two before delivery he contacted me to set up financing. I went through my Credit Union and since they work directly with that dealer, it was pretty painless and financing was in place. I took delivery in December. Drove my old Jeep there, parked it, signed off on the papers and drove away in my JLUR. hour and a half tops, for exactly the numbers we discussed. Overall, the process was good and I would consider factory ordering again. There is something to be said for the process of knowing your numbers, getting the numbers you wanted, and having a Jeep with 19 miles on the clock and your name on the sticker.

If I had to do it again, I'd do the same. The only difference is if I wasn't working with my sales guy who I knew and who has been great, I would have emailed several dealers in the area and told them my parameters(JLUR,Manual trans, Dual top, LED's and Punk'n/ Bikini/ Mojito!/ Firecracker), and my numbers. I wouldn't set foot on a lot until I had those in place and they were in the range I wanted to be in. People will argue about this all day, but when it comes down to it: it's 2020, and I don't need to buy a Jeep from someone who is a jerk because they have a dealer down the street. I can just as easily get a quote from a mega dealer via the internet, and hop a flight there and pick it up. Some dealers know this, and they'll work with you to get it done.

Good luck and I hope this helps. Any questions, feel free to hit me up.

 

[viper88]

Most dealers may want to run a credit check when you order a vehicle just to make sure your credit is appropriate for the price vehicle you are ordering. After that, no activity until the new vehicle comes in - at that point the paperwork is no different from buying something on the lot like any other car. They would simply manage the trade in, and any funds/debits from that on the loan for the new vehicle.

I have ordered around 15 cars, all different brands, from Subaru to Porsche. Not once did I have to have a credit check run when ordering.

Also be careful about letting any dealer pull a credit check. Every hard pull drops your credit score a little. You should do a soft inquiry yourself to get your credit score before shopping for a car if you need a loan. That way you know what rate you should qualify for.

 

[viper88]

Do the math, it’s not really a significant amount for the buyer. Example, if your tax rate is .085 percent. That’s only $80.50/$1000.00 dollars. That amount is easily negotiable. The dealerships are going to lose money.

It's not easily negotiable with the dealer. Especially if you have a net/net deal.

It makes a huge difference. What about if your trade is $20,000-$40,000? In IL the sales tax credit is capped at $10,000 for 2020. You only get a sales tax credit for the first $10K. Trading in a $20,000 car at your 8.5% example would cost you $850 more in 2020 then in 2019. A $40,000 trade would cost $2,550 more in sales tax in 2020 then in 2019.

 

[viper88]

Good to know. We are ordering a 2020 JLUR here in IL, my wife has a dying 2003 Z4, and we are debating trading/private selling/donating. I don't want to deal with privately selling, so knowing we will get a little extra bonus on the tax side in IL for trading might swing us in that direction.

What engine, trans, options, color, miles for your Z4? Any paint work?

 

[viper88]

As the title says, I'm trying to find information in how custom ordering a wrangler (any vehicle really) works when you have a trade in also. When you place in the order, do you have to set up a loan for that vehicle at the time of ordering, or is that done when it arrives to the dealership? The trade in I have is my DD and the wrangler would be replacing it. Thus I'm trying to figure out if I do an order, will have two loans at the same time, or will it move from one vehicle to the other. Thanks!

Some dealers will evaluate your car and provide a locked in trade value for 30-60 days and x-amount of miles driven.

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