Buying a new Honda tomorrow & trading in a Jeep. Any advice?

Matt McGrain · **Posted:** Wed Feb 08, 2017 10:43 am

So my mom's '13 Jeep Patriot with a mere 24,000 miles is basically a complete POS. Last summer I had to pull off interstate 40 coming back from the beach in 90° weather traveling about 80mph after the transmission temperature light went off and the car went into limp mode. Driving back doing 55 mph with the flashers on in heavy traffic was awesome!

We took it to Westgate and after three days and incurring rental expense, they said it just overheated and it's common from time to time and there's no fix/recall. Really?!?!

Apparently the after doing some research, the CVT trans in these things is an abomination and the only solution is an aftermarket transmission cooler or to keep tossing new transmissions in the damn thing. No thanks. It drives like a absolute pile anyway. So I think one of those new Honda HR-Vs is in the cards and the Heep is getting traded in tomorrow.

I've only purchased one new car (the ST) and it was pretty easy. I just walked in and told them what I'd pay and they said 'sure'. I don't have a feeling it will be that easy this go-round so my question is this: What's the best approach to buying a new car while trading another in? The Jeep trade-in is around $12k and the HRVs are around $19,500. I'm assuming you get the trade value first then start working on the new car price. This would be a cash deal too if it matters. They'll want us to finance but it's probably best to disclose that at the end I'd imagine, right? Any advice welcome! Thanks!

RobLupella · **Posted:** Wed Feb 08, 2017 11:35 am

Biggest advice is keep the two transactions separate. figure out what the Jeep is worth at trade in value and decide how much you need out of it and go from there. You can use any of the auto sites to see what they are selling for and kbb/edmunds/nada to get an idea of what its worth at trade in value. Or see if Carmax has one and look at the price and subtract what you think a fair profit is and use that.

For the new one I'd do the same thing. See if there is a used one and what its selling for and see how close you can get to it. I've not tried True Car so I don't know if it is really any good

The other thing is that if you are less brand/model fixated you might get a better deal on something else or at least negotiating leverage. Mazda CX-3/5, Toyota RAV4/Highlander, Kia/Hundai whatever, Ford Escape/Edge/Flex/Exploder, Chevy something or other. They might have good deals or special financing.

Also, if there is a deal on financing (0% and it is worth more than a discount) you can always take it and then pay off early.

Just thoughts

Good Luck . Those Jeeps are POS. My nephew actually traded in (LemonLaw) his POS Fiat 500L for a Patriot. :-P

Andrew Jonell · **Joined:** Mon Mar 23, 2009 6:43 pm **Posts:** 1350

This isn't specific to this area, but I've seen a few reports of people online buying CR-Vs and the dealer not budging at all because they don't stay on the lots for very long.

I haven't heard any glowing reviews of the HR-V, so make sure that's the car she wants.

As for transaction details, if they try to play any four square nonsense, tell them you're not playing. Ask them what the OTD price is, don't pay for pinstriping or any other amazing dealer adds like undercoating or laser etching. "What is the Out The Door price?" is your starting off point. From there, then you tell them that you're trading in something, and you can negotiate higher on that if they give you a nonsense joke of an answer. The key is to negotiate those numbers separately.

As for financing, it's kind of ridiculous right now. Pentagon Federal has been my lender of choice lately and they have a small fee to join (~$15 maybe?) and they're offering 1.49% for 36 months. I just looked at Honda's site and they're offering 0.9% for 24-60 months with a $17.05 a month for every $1k financed... going with the credit union is probably going to be the best bet. Just tossing some numbers into an online calculator will let you know which is the best route to pursue. For example, $8k @ 1.49% for 36 months results in a $227.36 monthly payment with $185.10 total interest paid over the life of the loan (aka: $5/month in interest). This is assuming a good credit history (720+ usually gets the prime rate), but you want to show up with your own financing if possible. Calling up your bank and getting pre-authorized is not the worst idea in the world if you decide to finance.

Chad Culbertson · **Posted:** Wed Feb 08, 2017 1:46 pm

Honda dealers so far in my experience are notorious for not willing to haggle much on the sale price.

I've always found dealers will low ball you on your trade as well, and I always negotiate the trade value higher, sometimes this is actually easier than negotiating the price on the new car.

I agree on the negotiate those two things separately.

If you can get 0% interest or almost 0% it might actually make more sense to finance the remainder and put that cash somewhere it will actually earn more than the financing would have cost you.

Some people just don't want the recurring monthly expense though, so that's kind of a personal decision.

Matt McGrain · **Posted:** Wed Feb 08, 2017 3:41 pm

Thanks guys.

No financing this go-round. It's not worth the hassle for only a few grand out of pocket.

Good to know Honda doesn't haggle much because I walked Crossroads Ford and then Capital Ford and told them I'd buy the Focus for almost $5k below sticker out the door and Capital bit. Technically, a week later their service bit it pretty hard, but that's another story.

I've already recorded the KBB, Nada, and Edmunds down for trade-in value and figure if I can get full trade-in for 'good' condition and a grand off the new car whether it be Accord, Civic or HR-V, we're good to go. Can't imagine you really have much leverage on the absolute least expensive vehicle Honda makes (besides the Fit).

Andrew Jonell · **Joined:** Mon Mar 23, 2009 6:43 pm **Posts:** 1350

It also might be worth it to swing by Carmax before hand just for reference and to have it as an option.

I can't remember what the "value" of my Mazda2 was when I traded it in, but the dealer did bump up the value of it when I called them out on their low ball.

RobLupella · **Posted:** Wed Feb 08, 2017 5:09 pm

Andrew Jonell wrote:

It also might be worth it to swing by Carmax before hand just for reference and to have it as an option.

I can't remember what the "value" of my Mazda2 was when I traded it in, but the dealer did bump up the value of it when I called them out on their low ball.

Agree with this. And you never know what leverage you have. Especially if the new Civic just came out they may have the previous generation on the log in which case they should be willing to discount. Also having an open mind about brand/model gives you more leverage, especially with transportation cars vs fun cars. :-)

.

Aaron Buckley · **Posted:** Wed Feb 08, 2017 5:16 pm

The HRV is a brand new model, never made previously. My oldest sister bought one a few months ago. Honda will hold the cards here. Is she a Costco member? Their car buying service will get you a deal as good or better than TrueCar pricing. - AB

Chad Culbertson · **Posted:** Wed Feb 08, 2017 5:41 pm

Aaron Buckley wrote:

The HRV is a brand new model, never made previously. My oldest sister bought one a few months ago. Honda will hold the cards here. Is she a Costco member? Their car buying service will get you a deal as good or better than TrueCar pricing. - AB

Can I just go shopping for cars on the shelf at CostCo?

Vincent Keene · **Posted:** Wed Feb 08, 2017 6:03 pm

Chad Culbertson wrote:

Can I just go shopping for cars on the shelf at CostCo?

Possibly, but you might want to check the sell-by date on that one.

Patrice Bousquet · **Posted:** Thu Feb 09, 2017 8:34 am

Andrew Jonell wrote:

It also might be worth it to swing by Carmax before hand just for reference and to have it as an option.

I can't remember what the "value" of my Mazda2 was when I traded it in, but the dealer did bump up the value of it when I called them out on their low ball.

No more Carmax for me, when I traded in the Abarth for the GTI, I pass by Carmax to have an idea, their offer was ridicule, the VW dealer was giving me 2K more than Carmax.

BenjaminGuardiola · **Joined:** Wed May 14, 2014 8:31 am **Posts:** 84

Patrice Bousquet wrote:

No more Carmax for me, when I traded in the Abarth for the GTI, I pass by Carmax to have an idea, their offer was ridicule, the VW dealer was giving me 2K more than Carmax.

Same here, got $5k more for my Wrangler through Craigslist (almost double the $). Took 5 days to sell, cash in hand.

Most cars Carmax purcahses are taken to auction. They have very strict criteria for the cars on their lots. I have a friend who is a manager at the one on Capital Blvd. They have several used cars that are only a few grand under new car MSRP. The only reason they are in business is because the typical used car salesman is so trustworthy. I think people just feel more comfortable in the big-box-store environment they have created.

brettmcwhorter · **Posted:** Fri Feb 10, 2017 4:19 pm

Never understood throwing the money away on trading a car into a dealership. Always sell private party. NADA value on a base model 2wd 2013 patriot is $15,400. I figure you could sell it for $13-14k on craigslist all day long.

Chad Culbertson · **Posted:** Fri Feb 10, 2017 4:29 pm

brettmcwhorter wrote:

Never understood throwing the money away on trading a car into a dealership. Always sell private party. NADA value on a base model 2wd 2013 patriot is $15,400. I figure you could sell it for $13-14k on craigslist all day long.

Some people just don't want to deal with strangers and selling them a car and then having to go find a notary that will notarize documents at a time when you both are able to. Or maybe the vehicle is financed and then that really starts getting troublesome. Who knows where the title is, so you have to figure that out, then the person buying the car has to pay the bank, not you, and hopefully the title can be at a local branch so they can get it and not have to wait for it in the mail. I suspect the car being financed is a big reason most people trade cars, plus when your talking about something of value, they probably are going to be financing it so you have to wait for them to work that out with their bank and them to cut the buyer a check to give the seller and what not.

Where as if I trade the car into the dealer they handle everything, I sign some documents and walk away with my new car in a couple hours.

Aaron Buckley · **Posted:** Fri Feb 10, 2017 5:23 pm

Chad Culbertson wrote:

Some people just don't want to deal with strangers and selling them a car and then having to go find a notary that will notarize documents at a time when you both are able to. Or maybe the vehicle is financed and then that really starts getting troublesome. Who knows where the title is, so you have to figure that out, then the person buying the car has to pay the bank, not you, and hopefully the title can be at a local branch so they can get it and not have to wait for it in the mail. I suspect the car being financed is a big reason most people trade cars, plus when your talking about something of value, they probably are going to be financing it so you have to wait for them to work that out with their bank and them to cut the buyer a check to give the seller and what not.

Where as if I trade the car into the dealer they handle everything, I sign some documents and walk away with my new car in a couple hours.

All of this and it's a guaranteed sale if they want you to buy their car. The mistake most people make is not negotiating on the actual trade amount. I traded in a 2010 STi SE that I paid $31,000 brand new 2 years later (9500 miles) for $29k on my Armada.... the day after the ProSolo Finale in Lincoln, NE. No way would I have been able to sell it for more than that private party. In Matt's mom's case, they want to sell her a car and the trade is a KNOWN turd in the industry. She gets rid of an issue and they get a sale. - AB

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Buying a new Honda tomorrow & trading in a Jeep. Any advice?

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