Trade in *mint* 2015 CPO for higher mileage 2014 ?

2015 LR4 HSE LUX w/ 35k will be around $38k trade/wholesale. On the high side.

iconoclast said:

2015 LR4 HSE LUX w/ 35k will be around $38k trade/wholesale. On the high side.

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So Land Rover is making $15k-$20k profit on the CPO LR4s they are selling? Seems pretty high for the industry standard in the used car market.

If you are correct, then that is depressing, and definitely not even worth my time stopping by the dealer.

What they are asking for and what they are selling are two different numbers. What a dealer puts into them plus the cost of the warranty adds onto that price. As you know LR Dealership rates aren't cheap and when the sales dept has to recon a vehicle they're not exactly getting a discount that makes them jump for joy. The mileage you have the average vehicle needs tires, pads, rotors, oil change, air filters wipers and on top of that a costly warranty so the delta you see between wholesale and retail isn't all profit. That is the current wholesale number, find a dealer to pay more you win find a private party to pay the numbers you see listed and you're in even better shape but neither will be an easy task.

Supposing your numbers are right. You’re paying 16k to get out of a car loan that at 1.8% is virtually free money.

Look at your loan papers. What is the total amount of interest you’ll pay by the time the loan is paid off?

If it’s less than 16k you are really shooting yourself in your bankbook if you pay 16k out-of-pocket to retire that loan.

Frank8 said:

Supposing your numbers are right. You’re paying 16k to get out of a car loan that at 1.8% is virtually free money.

Look at your loan papers. What is the total amount of interest you’ll pay by the time the loan is paid off?

If it’s less than 16k you are really shooting yourself in your bankbook if you pay 16k out-of-pocket to retire that loan.

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IDK Frank, consider this. It’s not free money when you don’t need to replace it with an equal/similar cost vehicle. Every day it’s depteciating so if one can be fine with a much less expensive vehicle, esp w no loan, it’s the best financial route.

Ending the outpouring of loan servicing is way better if you don’t need it. Your logic only works when someone is simply looking to make a more or less lateral move in loan but of course losing on the trade.

Basic logic is if I can be fine w a 25k car and am 1/3 into a 60k car, I can ‘save’ the difference: 60-25-depreciation/resale loss. 60-25-10?= 25 net difference. Better yet, ignor dunk cost of what it was bought for. All that matters is what it’s worth now vs alternative.

I’ve been through many cars and loans. I learned the hard way.

Cost to keep current vehicle is simply loan balance. Savings to go cheaper has to be substantially less though as noticed above due to weak trade values.

Best scenario is private sale. Ideally one would be able to buy outright a vehicle for no more than 1/2 current loan balance or 20-25k tops.

Any replacement vehicle above that range is probably getting very close to a wash due to depreciation loss and other factors such as warranty coverage period.

In all but very rare situations, the trade value here will be sickeningly low. That’s from my own experience. Private sale should net 10-15% more if you can be patient and are cash fluid so also able to find the replacement without relying on the sale timing.

Frank8 said:

Supposing your numbers are right. You’re paying 16k to get out of a car loan that at 1.8% is virtually free money.

Look at your loan papers. What is the total amount of interest you’ll pay by the time the loan is paid off?

If it’s less than 16k you are really shooting yourself in your bankbook if you pay 16k out-of-pocket to retire that loan.

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I think we’re all making too many assumptions here though. This is not about the interest to me, it’s aboit total in the end. Owing 36k Plus leaving the equity in the table vs buying something cheap enough is the trick.

And you know of course the interest is no where near 16k lol right? 1.8% is very little.

I bought a new 08 Audi S4 avant for 50k after negotiating down from 57 and on .9%/60 paid off early while also paying for the 07 LR3 I bought new.

Getting out of that for say $40k at a 10k loss and getting a 20k vw would’ve saved me 20k, period, no matter how awesome the low rate was.

Instead however, I spent 10k more on aftermarket stuff like full exhaust, dedicated Winter wheel/tire set, ceramic tint, custom flush hitch and stealth installed laser/radar

My gut feeling is, this game won’t work if the replacement is just a yr or two older.

I almost bought (meaning deposit & negotiated deal, “sold” tag on car) a 2013 LR4 100% optioned. At last moment I decided the lr3 would continue doing 99% what that would’ve done for me but at 1/4 the cost.

I went through several yrs of vehicle musical chairs. Blew a ton of money in the process. (The losses on trade-ins alone would buy a new RR outright...)

Maybe it’s different for me having alternate cars but that’s a consideration here too. I’d rather have two so that one is more for commuting, or sporty driving, backup if other is in for service, etc than be maxed out in just one. My other car is a bmw 535xi wagon 6spd which is incredibly comfortable for the longer road trips and it’s perfect for winter skiing seeing as there aren’t any open off-road routes anyway. It gets 30% better mpg and passes other cars with ease.

Less $ wrapped in the suv slot allows easier justification for other toys too. You know what’s sweet though, not having a car payment, especially ones that equate a house mortgage!

backcountryLR4 said:

So Land Rover is making $15k-$20k profit on the CPO LR4s they are selling? Seems pretty high for the industry standard in the used car market.

If you are correct, then that is depressing, and definitely not even worth my time stopping by the dealer.

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Best I’ve ever done w trades was when I had a long relationship w a dealer and multiple cares from them. Still, put yourself in the shoes of sales mngr, you want to take in used cars that can sit for 3 months and you don’t lose. You want to be able, if necessary, to send it to auction and at least break even. 10% or worse right off the lot is your trade value loss. Double it for most scenarios pretty much.

Examples: I had a very rare $76k sticker VW V10tdi super low miles from new, less than a yr old. Dealer offered 50...yes 33% less...I found a broker willing to do a 55k outright buy as I was impatient. Then I bought the Audi LOL Still have that though.

New 07 RRSC, $96k sticker. After less than 6 months (yes, nuts) I decided I needed more practical cargo space so got the lr3 instead. Luckily I found a private buyer for my very rare white on ivory. Not a single dealer had one new or used. Sold it for 92 I think. Bought the lr3 for 55 and spent over 20k having it modified. That’s still 15k less than keeping the rr

I say just do it and do not have a car payment.
A car drives better when it is paid for...

Trade $ will be much lower than you think. Why not just wrap the white one? Interior colour the same?