Positive, not negative, equity...

Honest John Back Room » Motoring discussion
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Thu 17 Feb 2005 15:14
Positive, not negative, equity... - jdc
Just wondering about this because a pal of mine is downsizing due a change in job.

He has a car supposedly worth about 15k trade in (not sure what it is yet) and he is looking at a smaller more economical around the 10k mark with cheaper insurance etc.etc.

Do dealers take trade-in's like this where the value of the trade-in is more than the purchase ? If so, is it simply a case of the dealer giving the difference to the purchaser or is that far too simple ?

If it works the other round, and the value of the (higher) trade-in is accurate, the dealer is still in the same position ......... or have I missed something ?!?

Personally I've never heard of this, just wondered if anyone here or in the trade had a view on this.

jdc
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Thu 17 Feb 2005 15:57
Positive, not negative, equity... - GrahamF1
What's the car?

With a high(ish) value second-hand car, surely he'd be better off selling it privately?
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Thu 17 Feb 2005 16:00
Positive, not negative, equity... - Vansboy
Most dealers, that want to 'deal' will look at anything, to make the sale.

Chances are you'll need to leave the car with them for a day, so they can get other trader bids on it, if it's not what they usually have on their site.

If it's a big dealer group, they would still try & do something, but would only offer minimum price & ship it off to auction.

But a vehicle of such high value, would probably be waste of time in the small ads - how many people do you know with £15k to go & buy a car out of the paper??

Guess you'll be chasing around a few garages, before you sell it!!

VB
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Thu 17 Feb 2005 16:37
Positive, not negative, equity... - GrahamF1
To clarify my post in light of what Vansboy has just said, when I referred to selling it privately I meant something like Auto Trader or Top Marques rather than the local paper.
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Thu 17 Feb 2005 17:26
Positive, not negative, equity... - jdc
Thanks guys.

I think it's some sort of BMW that he wants to get out of due to job change (loss actually...). It's a case of cutting and running I presume.

I can't see some private punter paying this sort of figure.

I'll suggest he tries a few dealers, for example if it's say a 5-series and he wants to trade to a Mini, it could work I suppose.

jdc
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Thu 17 Feb 2005 17:27
Positive, not negative, equity... - VTiredeyes
is it a 5 series diesel?
525d 530d se or sport?
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Thu 17 Feb 2005 17:30
Positive, not negative, equity... - GrahamF1
I'd imagine that he could put it in Top Marques at well below the 'book' price for a private sale and still get more for it than with a trade-in.

Of course he may get interest in it or he may not. At well below 'book' price, I'd have thought he would. But either way, it can't hurt to try before resorting to a trade-in.
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Thu 17 Feb 2005 17:28
Positive, not negative, equity... - VTiredeyes
is it a 5 series diesel?
525d 530d se or sport?
because i am after one.
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Thu 17 Feb 2005 18:21
Positive, not negative, equity... - jdc
"is it a 5 series diesel?"

Definitely not a diesel as I know the amount of petrol it uses is killing him !

Don't really know any detail on his car ...


jdc
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