Turn in or sell?

[Finlayforprez]

Hey Everyone,

I am just testing the waters here and wondering if I should sell my LR4 outright or turn it into the dealership in mid-June when my new LR4 arrives.

What do you think a fair price would be? Looking online they are saying $46,000 to $48,000, but I would go lower.

2011 Nara Bronze HSE, Almond/Arabica interior, Climate Comfort package, Sirius radio (I think that was an option), custom black design pack (grill, side vents, wheels, and all lettering in matte black), Voyager half-rack, front and rear light covers, rear ladder, front skid plate, rock slider/steps, Cooper Zeon LTZs (have around 5,000 miles on them), and a full-sized spare tire. The truck is in excellent condition with about 23,000 miles by the time it is ready to sell in mid-June 2013. It just had the 2 year service.

I am thinking I would sell it for $42,000-$43,000 with everything.

Thoughts?

-David

 

[PaulLR3]

I would try advertising it mid-May with the understanding that you can't deliver it until your new LR4 arrives. That gives you time to see if it will sell or not. Our new LR4 will probably be on the same boat as yours. Our decision was much easier as our 2008 LR3 has depreciated so much. I can sell my allroad for $5K more than KBB value so I will be selling the allroad and taking over my wife's LR3. The LR3 is 4 years newer than the allroad and far more reliable.

 

[Disco Mike]

Overall, you will get more if you sell your trade out right and then deal on the price of it's replacement.

 

[mbw]

The dealer won't give you extra for the accessories. You should take most of them off and just sell them to your fellow forum members for a good price (And you would probably make more money overall doing that)

In my experience, dealers are happy to charge $500 for some part, like a spoiler on my G35, but then you go to trade it in and they won't adjust the KBB price at all to account for it.

Should be pretty easy to unload the rear ladder, front skid plate, rock slider/steps no?

 

[uhur]

Re: accessories, technically KBB wouldn't show a significantly higher trade-in value for a well-accessoried vehicle. That said, if the trade-in shows well and the dealer is motivated, they can and will go above an average trade-in value and allow an "excellent" trade-in amount which would come pretty close to what you'd get for selling it privately

 

[Kaaae]

hmmm.... Maybe I could use a new DD..... Yours is barely used.... In 6 months I already have 30k miles....

 

[Finlayforprez]

The dealer won't give you extra for the accessories. You should take most of them off and just sell them to your fellow forum members for a good price (And you would probably make more money overall doing that)

In my experience, dealers are happy to charge $500 for some part, like a spoiler on my G35, but then you go to trade it in and they won't adjust the KBB price at all to account for it.

Should be pretty easy to unload the rear ladder, front skid plate, rock slider/steps no?

Hey mbw,

I think if I decide to sell outright, I will leave my accessories on the vehicle. With that said, I am leaning toward just handing it into the dealership and would like to try to salvage the front skid plate and side rock sliders/steps. Remember, my vehicle is a lease - so when I say sell out right, I mean pay off the lease. I plan to get a new ladder, as I do not care for how mine is installed.

The problem with removing the front skid plate and side sliders is that they removed the factory moldings and quite often you can't salvage the clips, etc. so it may not be possible to switch out the new moldings to my outgoing LR4.

I have some time to figure it out - but appreciate the input.

-David

 

[Count Laszlo]

Re: accessories, technically KBB wouldn't show a significantly higher trade-in value for a well-accessoried vehicle. That said, if the trade-in shows well and the dealer is motivated, they can and will go above an average trade-in value and allow an "excellent" trade-in amount which would come pretty close to what you'd get for selling it privately

Totally correct... research and see what the market demand is, which is high, use that to negotiate, as well as other factors.

Also, if it's a lease, the dealership will can negotiate the pay-off, since it's with a leasing company and not a bank.

 

[Count Laszlo]

This is what I would do.

If you are going to sell it as a private sale, I would remove every accessory that you can, and keep it for your next LR4. Selling it with all the accessories might be harder because you'll have to find the “right buyer” and that may take longer than anticipated. Whereas, if it's stock or close to it, you'll have a much broader audience and likely quicker sale. I would do this for trade-in as well. Don't leave money on the table.

If you don't sell it and would like to trade it in, find out what the pay-off is - it's one phone call away. If your monthly payments are high enough and you have a short loan cycle, and considering you're in the sweet spot of depreciation (2.5-years), your pay-off might be below or close to the trade-in value, or between that and retail.

If this is the case, I'd negotiate with the dealership to pay-off the loan completely as break-even and if there’s extra left-over, use that towards the down-payment. And then go from there. If they are only willing to pay-off below the actual pay-off amount, and that’s below trade-in/or between trade-in and retail, then renegotiate the new LR4 price down a little, and then roll-over the negative into the new loan.

So let’s say your '11 LR4 has a trade-in value of $35,000 and they're willing to give you $38,000, but the pay-off is $40K, let them pay-off and move that negative $2K into the price of the new LR4. But before even mentioning that roll-over approach, get that new LR4 price down a little more and/or have them throw in an accessory or two to help off-set. And also try and get the loan interest rate down a .half point or more – it’s negotiable. Dealers will usually add a point or two on top of the bank loan interest rate to make more money off your loan cycle. In the end, it’s all relative, so breaking even is usually the goal. Just be sure to work the numbers out on a piece of paper the sales-person/dealer can’t see – bring a calculator.

Also, make sure you tell them straight up that you won’t even consider a black book offer! They’ll give you a wholesale trade-in price that will feel completely offensive – hold your ground. Online trade-in values are off too so don’t get high hopes from them… but they are useful to figure out a fair trade-in benchmark. We know LR4s are hard to find used from the dealer so use that to your advantage. And go to autotrader.com, pull local LR dealership (within 500 miles) used prices for your model, blend the numbers to you can come up with an average, then use that as a working benchmark to pull down the price to a reasonable expectation. I usually factor in dealership costs… they have to carry that pay-off for at least a month or more, then have to clean, repair, CPO the vehicle, and advertise it. So be fair in your mind… and be realistic. If the ’11 LR4s non-Lux’s are advertised at an average price of $45K, factor in someone likely to negotiate that down at least $1K to $2K, then factor in about $2-3K for vehicle prep (approx. what they factor in), and whatever number you end up at, that’s the price you work from.

I find this approach to be the least hassle and it's worked for me in the past. In essence, it’s all relative regardless of the numbers, and the goal is to feel good about the deal, and never to reflect back on it or over-analyze it down the road. It’ll just drive you batty.

 

[horatio8]

I took a quick look online and in my area 2011s are offered for sale in the mid to high 40,000s. Your HSE with the low mileage and the service done should probably be in the higher end of that range even after getting the dealer to bargain (used LR4s are in short supply in my area). So, if you could buy your hypothetical car from a dealer at 45,000 or 46,000 and figure the dealer might need to put in brakes (they go quickly in these vehicles) and/or tires - the dealer might have to put a 1,000 in the car - so I would think the dealer would pay you 41,000 or 42,000 add in 1,000 for expenses and 3,000 for profit - sounds reasonable to me. This is purely guessing by me and I might be way off, but I've found the best way to figure this out is to put yourself in the position of the buyer.