Herculez
North Carolina
Senior Member
Joined: 08/13/2006
View Profile
 Offline
|
Members I need your help with this one.
We have thought about making a trade.
I have always wanted to know the wholesale value of my trade....To make sure that I am not upside down.
So first I told a dealer no trade. Give me your bottom deal on your product.
I got that figure. Then I said, I may trade. So they gave me what they call wholesale value on the trade.
But before they did that they said you should go retail to retail.
So my question is: Is there a reason that we should do that, And is there a benefit to doing Retail to Retail??
Thanks to all for your help,
Britt
|
txdutt
Parker CO
Senior Member
Joined: 11/13/2005
View Profile
|
to confuse your numbers, make it look like you have equity in your trade if you don't...check with your bank or credit union, they can give you the true wholesale and loan values
2011 Chevy Silverado 1500 Crew Cab LT 4x4
2009 Jeep Wrangler Sahara Unlimited
2005 Itasca Sunrise 38J Workhorse W24 Chassis
U.S. Navy 1978-1986
|
bigdogger
Texas
Senior Member
Joined: 02/03/2009
View Profile
Offline
|
If you are financing, almost all financing institutions use sophisticated credit scoring models to decide whether or not to grant the loan. Most of these scoring models give very high negative values to a situation where there is negative equity. They will score a deal with a retail price of $50,000 (retail), a trade in value of $20,000 (retail) and a payoff of $15,000 (net to finance $45,000) higher than the exact same rigs with the transaction submitted with a retail price of $40,000 (wholesale), a trade value of $10,000 (wholesale)and the same payoff $15,000 and amount financed ($45,000). The first deal shows a trade equity of $5,000 and the second a negative trade equity of $5,000. It make no difference to you, but a retail to retail deal will score higher on a bank's scoring model, with the caveat that the retail numbers are not ridiculous. This will not, by any means, guarantee an approval, the total amount financed, compared to the loan value of the rig is a greater concern, but credit scoring models create a mathmatical number for every loan and every point you can score will improve the odds the loan will be approved,and will also effect the rate that can be offered. In my opinion, as long as the amount financed doesn't change, let the professionals at the dealer's finance department present the loan terms however they want. They know what the lenders are looking for. Either way is ethical.
|
Herculez
North Carolina
Senior Member
Joined: 08/13/2006
View Profile
Offline
|
Bigdogger,
Hey thanks for the time you put into your post.
I just needed to have a better understanding of how this works.
The best thing to do would be to sell my trade on my own. I am sure some members would agree.
But your post is what I was looking for.
Thank you.
|
wild bill
Mira Loma, Ca. USA
Senior Member
Joined: 08/25/2002
View Profile
Offline
|
If you have no pay off on the trade then for sure go wholesale to wholesale.....sales taxes are less and (in California) your yearly tags will be based on the selling price of the new unit....not only the first year but every year that you own it..... Retail to Retail may make more sense if your owe more than your trade is worth and you have not got enough down payment to cover the difference......Each deal will be different according to the customers needs.....
05 Dodge 3500 Q-Cab,GearVendor 8 Sp,PacBrake,Banks intercooler & intake,TST R49,Transferflow 70 tank,TrailerSaver Hitch,05 Raptor 3612,Second AC, solar 6 battery sys Xantrex 3000, WEB SITE
http://home.earthlink.net/~wbrown02/wildbillwashere22/index.html
|
|
|
Herculez
North Carolina
Senior Member
Joined: 08/13/2006
View Profile
Offline
|
Wild bill,
My goal is to always make sure we have less then wholesale in our RV.
So we did do good based on what a dealer said our RV was worth. Yes we still owe money, however at least I found out we were below wholesale on what we owe..
That was the good news.
We all took a hit on our RV value after the RV Crash!!
I am just amazed at how much.
Britt
|
bucky
Eastern Shore of MD
Senior Member
Joined: 05/07/2003
View Profile
|
If you can, sell your current unit yourself. In years past, NADA wholesale trade in was what dealers usually went by. Not anymore. We recently had a discussion with a dealer about trading, he offered 55% of wholesale. This was on a one owner in very good condition. RV wholesale numbers are only published, to my knowledge they are not yet on the web. Your local library will have the fat orange book in the reference section.
99 Chev 7.4 crew dually and a Coachmen TT.
|
B.O. Plenty
Minnesota
Senior Member
Joined: 02/04/2010
View Profile
Good Sam RV Club Member
|
I don't see what difference it makes. All I would be concerned with is the difference between what I would trade in and what I'm buying. Shouldn't matter if it's wholesale or retail.
B.O.
2011 Big Country 3250TS...2010 Ram CC Laramie 4wd Cummins
15k Super Glide, Firestone Ride Rite, TrailAir Tri-Glide
Just say no to Chinese tires.
Cylinder count: 27, down from 51
Twin Cities Mn.
|
OnaQuest
Raleigh, NC
Senior Member
Joined: 01/15/2006
View Profile
|
B.O. Plenty wrote:I don't see what difference it makes. All I would be concerned with is the difference between what I would trade in and what I'm buying. Shouldn't matter if it's wholesale or retail.
B.O.
OH!!, but it does. Wild Bill is absolutely correct for any state that bases the registration and/or personal property tax on the value of the vehicle. It's the gift that keeps on taking.....
|
Buck62
Charleston, South Carolina
Senior Member
Joined: 04/28/2005
View Profile
Good Sam RV Club Member
Offline
|
OnaQuest wrote:B.O. Plenty wrote:I don't see what difference it makes. All I would be concerned with is the difference between what I would trade in and what I'm buying. Shouldn't matter if it's wholesale or retail.
B.O.
OH!!, but it does. Wild Bill is absolutely correct for any state that bases the registration and/or personal property tax on the value of the vehicle. It's the gift that keeps on taking.....
A lot of states use Blue Book Value or Fair market value, what the vehicle is currently selling for. In South Carolina it is fair market value no matter if you got a great wholesale price your property tax is established by the fair market value. If you feel that is too high you can request lower tax with supporting data like high mileage (over 100,000) or physical damage. It is the gift that keeps on giving year after year...
|
|
|
