Trade in advice/help

[OregonJeepGuy]

I’ve been toying with the idea of downsizing & upgrading by trading in my 2018 Sport Unlimited for a 2 door Rubi.

I would put the stock bumper back on and take out some things I added to the interior (Alien sun shade, seat covers, etc). It would be traded in with the hardtop and Bestop TrekTop, Rubi suspension, and less than 6K miles.
Believe it or not, I’ve never traded a car in before; I’ve always private sold the old and paid cash for the new. This time I’m interested in trading because I’d want to custom order the Rubi and I’d want to swap the 34” Coopers that are currently on the Sport for the 33” BFG’s that come on the Rubi (ie, Coopers to the new Rubi and the new BFG’s to the trade-in Sport).
Is it possible to negotiate that sort of thing beforehand? Do you get a OTD price for the new Rubi before you even discuss a trade-in?
Gotta admit, I’m pretty clueless on this kind of thing so any suggestions to help walk me through this would be appreciated.

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[JerseyMark]

I currently have a rubicon on order and plan to trade in my JKU.
You should be able to negotiate the price of the new Rubi when you place the order. The trade-in can be harder to negotiate at the time of the order. I have done it in the past with an order but this time the Jeep dealer wouldn’t do it. They basically said the used market prices have been fluctuating a lot and the orders have been delayed. So, they couldn’t guarantee that the trade in price would stay the same. So, I basically negotiated the new rubi price and then I need to see what they do for trade in when I get the new vehicle.

 

[guarnibl]

I'd recommend trying to sell privately as you may find you get a much higher price. Keep the trade out of the deal. There's really no positives selling it to a dealer given you're in Oregon AND you're putting in a new order. You're what, 6 hours from Nampa? I mean worst case you weren't able to sell it and you trade it in there (and likely get around KBB fair value). Then you get ~7-8% off invoice on the new one which is roughly 13% off MSRP.

There's literally zero reason to trade here in PHX area. They all want to give you below KBB fair value and only take 5% off MSRP for the new one. If I did that I'd literally > $10k on the table.

Difference in discount out of state compared to local on $63,000 (loaded Diesel): $5k.
Difference in selling private party ($48,000 sale) vs trading to a dealership ($38k KBB fair value @ 2019 26k miles): $9,000.
Tax difference: (Lease buyout @ $44k @ 5.6% state tax rate = $2500 -- you can't recover taxes paid unless you trade in to a dealership in a state that supports tax trade credit).
Total money left on table: ($5,000 + $9,000) - $2500 = $11,500. This number would potentially be $2500 higher in Oregon, meaning $14,000 or nearly 22% of the new vehicle.

Run the math yourself with various scenarios, and then determine what you want to do from there. I don't know the market in Oregon from a private party standpoint, but I think it's probably fair to assume you can easily sell for more than the KBB fair value. I don't think you will find a deal where you get more than that for trade AND get ~ 13% off MSRP like you can at Peterson.

 

[Xcoaste]

If you do trade in, don’t give them any extras. Only trade it with the hard top and sell everything else privately. You likely won’t get any value for the extras.

I did a custom order and sold my JKU privately. I had to ride bike a few weeks while I waited for the new Jeep but it was worth the extra couple thousand dollars I netted. The used car market will crash at sometime, so I wanted to cash in while waiting for the new Jeep to arrive!

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