jriker1

So I'm basically done negotiating my q8. For those who have read my threads already know I'm documenting my custom order. One item of interest, and even though I read not to talk about it until you are done negotiating the car, the dealer never once asked about a trade-in. How does the trade-in work if you want to do so, when custom ordering a car? From what I'm gathering the custom order isn't your car even when it comes in until you pay for it officially. They are predicting sometime in July for arrival once ordered. Do you wait until the SUV arrives before talking trade-in or should I be negotiating that before placing an order? Should I even mention it until it arrives? Thinking they wouldn't provide me a price for my trade-in and then honor that after two months of driving so curious what others have experienced. I'd see it myself but don't feel like it. Not sure if places like carmax are any good. Also thinking from what I read they will remove tax on my new car equal to the trade-in value of my car so if the car is 80k and my trade-in is 20k, I'll only pay tax on 60k.

Thanks.

JR

Chiclet11

I ordered my Q8, and traded in my A6. In my case, Before I put down a deposit for the Q8, I got a trade-in estimate with the caveat that the A6 would be in the same condition at trade-in time. The same dealer had done all scheduled maintenance and service on the A6. I was given the agreed upon trade-in estimate when the Q8 arrived. I should note that during the waiting period I drove the A6 infrequently - we have another 'beater' vehicle that I drove instead, because I feared something would happen to the A6, based on previous experience.

The previous experience - when I ordered the A6, I was trading a car from a different brand. During the time I was awaiting A6 delivery, my car was struck in the rear by an uninsured driver. My insurance covered the damage to my car. I actually contacted the Audi dealer and was upfront about what happened, and brought photos of the damage and repair receipts for their inspection. I ended up getting $500 less for the trade because the accident showed up on the Carfax history.

It's another story for another day how I tried to get 'diminished value' from the insurance company for the traded car since it was under contract before the accident occured. In spite of way too much time invested in this, I was unsuccessful.

Regarding tax, it may depend upon where you live. In Indiana, tax is paid on the purchase price minus the trade-in dollars. If you decide to trade, get the amount in writing and document (with signatures) any conditions that could alter the trade-in value.

jrjunior31

When your Q8 is less than a week out from the dealer take your current car to Carmax and get a written estimate (good for 7 days), you need this estimate because the dealer will never be above Carmax. The day your Q8 comes in head over and get a trade estimate from the dealer (it will be less than Carmax for sure), show them the Carmax estimate and ask them if they’ll match it, you would prefer to trade them your car and purchase the Q8 from them right now. If they don’t get close enough, tell them you need more time to think about the deal and try to walk out. Hopefully they will match (or get very close to Carmax on your trade) to keep you from walking out the door. If they don’t get close enough the worst case is you go to Carmax, sell your car (which is very easy and takes only an hour tops), then go back and pick up your new Q8.

Chiclet11

Good advice.

I used my trade as negotiating leverage. Yeah, I know this doesn't always work. Long story short: When dealer and I couldn't agree on Q8 purchase price, we were able to agree on a final 'Out the Door' price including all tax and fees, with the trade. I didn't care how they wrote up the sale as long as my final amount due was the amount (or less) than I was willing to pay. On paper I was given well over KBB high estimate for the trade, and thousands over Carmax offer, but just under 3% off Q8 price. My desired OTD cost was set at slightly lower than the total of 6% off Q8 minus the average of (KBB high estimate + Carmax estimate.)

txtom

I've had exactly the opposite experience with my last two trades; traded a Honda for an Audi and a BMW for a Porsche. In both situations, the dealers offered more for the trade than Carmax had offered.

jrjunior31

Funny, maybe varies by region. Around LA I’ve never had a dealer offer above Carmax.

txtom

Not only have the dealers offered more but trading with a dealer gives a break on sales tax since tax is charged on the net cost. In our area tax is 6.25% so that's $625 additional savings for every $10k of the trade-in value.

Alphatero

Oh please, not only do the car dealers offer less than Carmax or any other pricing service, but they exploit the fact that you are getting a sales tax break - "oh but sir, remember all the sales tax you are saving by trading in with us!" Like they are the donor of the tax break. But they know that if you sell elsewhere you have to do 7% better (my NJ tax rate) to even break even on the transaction. Its not a level playing field. The only option is to get in your old car and drive away without a purchase. That often gets their attention if you're lucky. Maybe. Sometimes

jrjunior31

Would love to have this tax credit, but here in CA there is zero tax credit on trades. Even if you trade your car after lets say four or five months of ownership (on a purchase) the money you spent on taxes is 100% gone.

txtom

Just giving my experience on the last two vehicles I've purchased, Audi and Porsche. I'm not claiming its typical. I've also had the same experience as you with the sales tax and have also driven away from deals that suddenly had surprise add-ons.