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

[Karl_in_Chicago]

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.

I always do the math - and it's pretty simple, it's a bad deal. Let's keep it real simple - buying a new vehicle at $50K with a trade valued at $30K. In 2019, for a Chicago buyer like me, that's a 9.75% tax on $20K - $1,950. In 2020 that's a 9.75% tax on $40K - $3,900. If you have an ability to easily inflate your trade-in price by $2K - from a dealer, who typically pay the *lowest* amount for trades when compared to private sales - to offset this double tax (because tax was paid on the original sale) you are heck of a sales negotiator and good for you. This will really stick it to the people that are regular new car buyers.

The point is, still, it's all regional and anyone buying/trading should just make sure they understand their local laws and taxes.

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[NJJeep Guy]

Mine was simple. Worked out the order and pricing for my new JLU. And then came back around to the trade in and what the dealer valuation would be. Treat it like two separate transactions even though it changes the amount of money you owe upon delivery

 

[JeepJLBase]

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.

All is negotiable or don’t make the purchase. Not that difficult. If you are to dumb to do that then that’s what you get. People that have 40k in trade value are not worried about money. The math was done in my original post, Thanks for trying to impress the internet with your wisdom. I don’t recall a requirement that people buy 30k vehicles.

 

[JeepJLBase]

Good for you. Do you wa

I always do the math - and it's pretty simple, it's a bad deal. Let's keep it real simple - buying a new vehicle at $50K with a trade valued at $30K. In 2019, for a Chicago buyer like me, that's a 9.75% tax on $20K - $1,950. In 2020 that's a 9.75% tax on $40K - $3,900. If you have an ability to easily inflate your trade-in price by $2K - from a dealer, who typically pay the *lowest* amount for trades when compared to private sales - to offset this double tax (because tax was paid on the original sale) you are heck of a sales negotiator and good for you. This will really stick it to the people that are regular new car buyers.

The point is, still, it's all regional and anyone buying/trading should just make sure they understand their local laws and taxes.

Good for you, do you want a prize for being the kid that talks over everyone? The updated law will be obvious when the negotiations begin and things look weird. I already did the math in my original post and there is no requirement that people purchase a 30k vehicle.

 

[Yngwie]

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

3.0L, auto, sport package, 150k miles. That's way up there in mileage for a BMW! Yeah, paint work, I think there were a couple of fender benders.

 

[viper88]

3.0L, auto, sport package, 150k miles. That's way up there in mileage for a BMW! Yeah, paint work, I think there were a couple of fender benders.

It's great to see you drove the car and enjoyed it! I know someone that was looking for a older convertible. What color? Will get back to you. Thanks.

 

[viper88]

All is negotiable or don’t make the purchase. Not that difficult. If you are to dumb to do that then that’s what you get. People that have 40k in trade value are not worried about money. The math was done in my original post, Thanks for trying to impress the internet with your wisdom. I don’t recall a requirement that people buy 30k vehicles.

Anyone trading-in a car should be concerned about how much they save or spend. No matter how much they spend.

It's not nice to call people dumb. Yeah, your the smartest guy in the room. Except you don't know the difference between a preposition and a adverb. You should have used the adverb "too" not the preposition you used.

You obviously also have no idea of what a NET/NET deal is either. Or this topic is way over your head? A new JL is at least $30K by the way. And this thread is about ordering a new JL.

 

[Yngwie]

It's great to see you drove the car and enjoyed it! I know someone that was looking for a older convertible. What color? Will get back to you. Thanks.

Thanks! Silver. Feel free to PM me.

 

[JeepJLBase]

Anyone trading-in a car should be concerned about how much they save or spend. No matter how much they spend.

It's not nice to call people dumb. Yeah, your the smartest guy in the room. Except you don't know the difference between a preposition and a adverb. You should have used the adverb "too" not the preposition you used.

You obviously also have no idea of what a NET/NET deal is either. Or this topic is way over your head? A new JL is at least $30K by the way. And this thread is about ordering a new JL.

If you don’t like the tax laws vote. No body knows what a net/ net deal is. That’s just dribble for the dealership. I can find thousands of typing errors on this forum too.

 

[BSRubicon]

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.

One thing to remember is when you go to place an order, you are essentially negotiating the Wrangler price and dealer add-ons at that time. Be prepared to do all of your haggling for X% below invoice and dealing with telling them you don't want to pay for tint and paint protection and all of that stuff on order day, not pick up day. When leaving you should know the out the door price with tax, title, license, and dealer fees. It will likely exclude or omit your trade value. It is nice to get it all out of the way upfront, then you don't have to worry about it while waiting to get your Jeep built and pick it up. The trade may or may not be valued when you order it, but they will certainly want to know about it prior to the order being placed. They may also ask you to estimate what your down payment will be (which includes the deposit you will be paying that day) if you plan to put down cash on top of the trade. Basically they will want to be comfortable with you being able to actually pay for or finance it when it actually shows up. Sure they can sell it on their lot but it may not be a combination they consider a fast mover, so they do assume a minor risk.

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