After 100+ posts Iām so invested in knowing what these dealers are offering on the trade!
Thatās the single most important variable right now haha.
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So over 100 posts now and we find out that itās 6k on the trade in and $299 a month for a honda sport.
So basically over 465 bucks a month for a honda LX with some sporty added on features!!!
Damn times are good!
Iām confused on the logic. Is it only a ābadā deal because of the trade equity? Why would I not want to maximize the trade value?
Like I mentioned, Carvana indicated that my vehicle had negative equity, and other dealers are only offering me 1-2k max. I just found out how much Honda is offering for my Accord yesterday, which is why I started posting again.
This is an ask forum, so Iām asking. Obviously the trade value is inflated here, but is that really a bad thing? If so, how? Following the aforementioned coupon logic.
All of these dealers are using your trade as part of your das amount. The amount that theyāre writing down on paper is somewhat irrelevantā¦ they can say theyāre giving you whatever they want.
Right now, without a good understanding of what your trade equity actually is, there is essentially a blank check sitting on every one of these deals.
You have two optionsā¦ you can either negotiate your deals without a trade, so thereās never any confusion and can actually evaluate the deal or you can include the trade and independently get multiple purchase quotes from many sources to establish a baseline estimate as to what your trade equity actually is, and then factor that value in.
The number any dealer tells you for your trade, if it is part of the new lease, is useless for establishing actual value.
At this point, if you want to determine if any of these are a good deal, you have one path forward, and one pathforward only.
Follow the steps given you at the beginning of this thread to establish what a reasonable target price is for the vehicle, independent of the trade.
Then get purchase quotes from at least half a dozen 3rd party dealers to establish your equity value independent of the new lease.
Then adjust your calculator so that the das amount matches the highest offer from the 3rd party dealers.
That will give you something that you can compare these offers to. Without that, youāre just flailing around in the dark.
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Okay. So, if the determination is that the actual trade value is less than the quoted trade value from dealers currently, am I to convince myself that is a better situation to be in?
Give me all the details of the car you are trading in and how much you owe on it.
By all details, I mean year, make, model, miles, color, past/present damage, engine, transmission, number of doors, and location.
2018, Honda, Accord, 29,562, Red, 1 accident (someone hit me), a few scratches, 2 door dings, 3 scratched rims, engine and transmission good, 4 doors, Florida. Payoff is 16,540.66$.
Youāll need to include trim level, etc
trim, cylinders, stick or auto, and tell me more about the accident. How many panels were replaced/repaired/painted? Cost of repair?
Yes, it is a Sport 1.5. Automatic. Everything factory for that trim. Soooā¦4 cylinders, CVT.
Read end collision. rear bumper was replaced, Nothing else was damaged. That cost was ~2k.
ok, hold upā¦ Carvana said you are in the hole on this?? I donāt get it. Even with the issues, this is easily a $20k car on the trade side.
Anyway, letās say $3500 equity is fair. I would suggest using that as your basis of comparison. Meaning, for any deal you are working on with your trade, in order to level the playing field, just assume you are getting $3500 equity, no matter what they show you on paper.
In other words, $299/mo for the new Accord is with $3500 up front. That means youād effectively be paying $396/mo. How does that deal compared to what you have found in your research?
I feel like this is still going to confuse you, so Iāll run some examples by you.
Dealer 1. āWeāre giving you this Accord SE for $299 with $0 down and giving you $6k equity on your trade.ā Translation: $299/mo with $3500 due at signing (in the form of trade).
Dealer 2. āWeāre giving you this Accord SE for $329 with $0 down and giving you $5k equity on your trade.ā Translation: $329/mo with $3500 due at signing (in the form of trade).
Dealer 3. āWeāre giving you this Accord SE for $299 with $0 down and giving you $2k equity on your trade.ā Translation: $299/mo with $3500 due at signing (in the form of trade).
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Yes, twice. First time was -$500+ and second was
-$400+. Vroom was willing to give me about $800+ positive equity
See, this is where you are losing me. Why do you want me to ignore the fact that Iām
being offered 6k for my trade? Given the fact that the equity is obviously inflated, does that not ultimately work out in my favor?
Be very specific, please.
see my follow-up post above with examples.
Sooo, I shouldnāt take the deal because of the over-allowance on my trade?
holy hell.
HOW DOES THE DEAL ($396/mo with $0 DAS) COMPARE TO WHAT YOU HAVE FOUND IN YOUR RESEARCH?
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Thatās not the deal, though. The research will be skewed because the trade equity is different at different dealers. Why would I go back to Honda and tell them to give me less for my trade??!
$3500 may be fair. Iāve been offered MORE and Iāve been offered LESS. Why would it behoove me to go with the lesser offer?
Iām out.
Math is not your thing.
Here, reach out to this broker:
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Le sigh. 
Is there anyone that can convince me why this is not a good deal based on the trade equity? Thanks.