Any advice about trading boats in?
08-16-2002, 04:13 AM
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Any advice about trading boats in?
Never traded a boat in before, any stories good and bad you wish to share? It seems like most dealers do not like taking trades.
08-16-2002, 06:58 AM
#2
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Just be sure that every thing is in good shape when you trade it in. Like the oil.
I had water in my oil. I think it was from a pevious problem that I had fixed, I just never got the oil clean enough. He tried to say it was raising on the dipstick as we ran it on a water hose. I don't think he was right, but I couldn't prove it. I went a ahead with the trade, but it cost me $3k.
I had water in my oil. I think it was from a pevious problem that I had fixed, I just never got the oil clean enough. He tried to say it was raising on the dipstick as we ran it on a water hose. I don't think he was right, but I couldn't prove it. I went a ahead with the trade, but it cost me $3k.
08-16-2002, 07:40 AM
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They will get the better of the deal !!!!!!
only thing to try is tell them "no trade" then when you get
the best price on new one,say well what would you give me for my trade? At least this gets rid off the fuzzy math they like to through at you.
only thing to try is tell them "no trade" then when you get
the best price on new one,say well what would you give me for my trade? At least this gets rid off the fuzzy math they like to through at you.
08-16-2002, 08:07 AM
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I traded my 24 Outlaw for the 29 I have now. No complaints. He gave me $40,000 for it. I only paid $44,000 for it new. It was 3 years old at the time.
One advantage of trading in Maryland is that on the new boat, you only pay sales tax on the dollar amount difference between what you got for your trade and what the new boat cost. On a $100,000 boat, that equals a savings of $5,000.
One advantage of trading in Maryland is that on the new boat, you only pay sales tax on the dollar amount difference between what you got for your trade and what the new boat cost. On a $100,000 boat, that equals a savings of $5,000.
08-16-2002, 12:09 PM
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Go ahead with the trade in, "but" make sure you have thouroughly educated yourself. I have never sold a used car myself, I always trade them. (by the way I sell for a living)
You would do best to try and create a win/win scenario for both you and your dealer. All too often consumers get screwed becouse they dont due the homework necessary.
All you really need is to know what the new purchase can be had for clean, cash buy. Send out 3 freinds to shop the same vessel at different locations, obtaining the best price.
Next, be realistic about your trade ! No a dealer cannot give you retail on your used boat. Dealerships have employees, fixed overhead, advertising expenses, and will have to stand behind that used boat to the new owner. The market value on your used boat is whatever it is, figure less 10% for dealer profit. ($100,000.00 trade market value -10% nets you $90,000.00) How much is equitable depends on how much you may owe.
The rest is a simple matter of polite negotiation, make your dealer an offer based on what you know. Offer your trade in at the value you know he will make 10% on. Most likely you will come to terms. If by chance the dealership won't make the deal, chances are they don't have the financial clout to carry the trade. Don't be discouraged, I had to shop 4 Dodge dealers before I could get my deal through on a new quad cab. (Arrigo in Palm Beach was the winner of my business)
Often times dealers will work closer on there inventory. The reason is they pay monthly floorplan costs and curtailments. The longer the vehical sits the more it costs, the less profit that is made. Remember, the dealership needs to roll his inventory often enough to offset these expenses.
You will also need to consider the financial aspects of interest rates if you may be financing the balance. Negotiate the best rate possible on a fixed, no prepayment penalty note. The payment will fall according to the $ you need. Dealers also look here for profit so you may be quoted a high rate initially, this again is a starting point. Negotiate by comparing what you can obtain from other sources of money. Then again offer the same dealer a fair % on the loan amount.
The purchase should be most enjoyable, not a slug fest. It can be the start of a long lasting relationship with the local dealer. The same one who will be servicing, and possibly trading again in the future. Good luck and enjoy !
You would do best to try and create a win/win scenario for both you and your dealer. All too often consumers get screwed becouse they dont due the homework necessary.
All you really need is to know what the new purchase can be had for clean, cash buy. Send out 3 freinds to shop the same vessel at different locations, obtaining the best price.
Next, be realistic about your trade ! No a dealer cannot give you retail on your used boat. Dealerships have employees, fixed overhead, advertising expenses, and will have to stand behind that used boat to the new owner. The market value on your used boat is whatever it is, figure less 10% for dealer profit. ($100,000.00 trade market value -10% nets you $90,000.00) How much is equitable depends on how much you may owe.
The rest is a simple matter of polite negotiation, make your dealer an offer based on what you know. Offer your trade in at the value you know he will make 10% on. Most likely you will come to terms. If by chance the dealership won't make the deal, chances are they don't have the financial clout to carry the trade. Don't be discouraged, I had to shop 4 Dodge dealers before I could get my deal through on a new quad cab. (Arrigo in Palm Beach was the winner of my business)
Often times dealers will work closer on there inventory. The reason is they pay monthly floorplan costs and curtailments. The longer the vehical sits the more it costs, the less profit that is made. Remember, the dealership needs to roll his inventory often enough to offset these expenses.
You will also need to consider the financial aspects of interest rates if you may be financing the balance. Negotiate the best rate possible on a fixed, no prepayment penalty note. The payment will fall according to the $ you need. Dealers also look here for profit so you may be quoted a high rate initially, this again is a starting point. Negotiate by comparing what you can obtain from other sources of money. Then again offer the same dealer a fair % on the loan amount.
The purchase should be most enjoyable, not a slug fest. It can be the start of a long lasting relationship with the local dealer. The same one who will be servicing, and possibly trading again in the future. Good luck and enjoy !
08-16-2002, 12:12 PM
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That all depends on what numbers you want to see. Now this is going to sound funny coming from a dealer, but here it goes. The truth of the matter is I can show you a deal ether way. For instance, the numbers Birdog would like to see are the "real numbers". But some people dont want to see real numbers some people want to see full retail for their trade. Ether way the bottom dollar stays the same. For instance lets say Birdog does it his way he buys are boat for wholesale then says here is my trade. That is fine and dandy so we give him whole sale for his boat. And every one is happy. Vs. the next guy says I want to see retail for my trade so we show him retail and sell our boat as retail. In both cases the actul numbers change but the bottom line stays the same. Make sence?(sp) In other words you and him paid the same amount on the differance. $30,000.00 and your boat.
My .02
Cramer
My .02
Cramer
08-16-2002, 01:38 PM
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Cramer, The problem is the dealers want to give you wholesale (sometimes less) for your trade and want close to retail (if not retail) for the new one.
Bosco, I am realistic about all the toys I buy and sell. First, let’s talk about the trade. I will never trade unless it is the last resort. I have a dealer friend who will not sell a new item without making $10K period, and that is the average. This is that overhead stuff you were talking about. I am also always weary, based on past experiences, of ending up with someone else’s junk. I mean if you are truly an educated buyer you know you are paying for all of the overhead, sales commission and profit so you know that you can not and will not win when you trade. That's just the way it is. Now I am not going to say it never happens, but it is the exception not the rule or dealerships could not afford to be in business. So armed with the reality of this information the only way you would want to trade is if you did not want to, or could not stand by the vehicle you are getting rid of or you must sell it fast and the market is bad. To me that is too risky a chance.
So the thing to do is buy the item like you are selling it. Let me explain. Don't buy the basic model, it will not have appeal in the used market and will not command the top sales prices. Also never personally customized it, keep the item attractive to the general market. If I am looking at a two identical trucks and one is riddled with aftermarket stuff, has holes drilled in the body for a CB antenna or has a custom paint job, the color of your wife’s sparkling eyes, I will pick the other vehicle even if it cost more or has more miles/hours on it. If you price your used item realistically, it is loaded and clean and not overly personalized you can expect to get on the high side of the value between wholesale and retail. A note on pricing, I once had a friend who had his boat for sale. It was clean and loaded and he was asking retail. Within the first couple of weeks he got an offer for $3K less then he was asking and he turned it down, out of principle. Now that boat sat for the next 6 months before it sold. During that time he made boat and insurance payments that totaled $1,900.00 and at the NADA value dropped $1K and don't forget storage cost. So he ended up selling the boat for less then he would have 6 months earlier, all in the name of principle. Darn, did not mean to pontificate this long sorry.
My advice Sell it yourself, go into the new dealer without a trade and cut your best deal and never, never let him know that you have fallen in love with the item! Trust me if they are good they can tell.
Bosco, I am realistic about all the toys I buy and sell. First, let’s talk about the trade. I will never trade unless it is the last resort. I have a dealer friend who will not sell a new item without making $10K period, and that is the average. This is that overhead stuff you were talking about. I am also always weary, based on past experiences, of ending up with someone else’s junk. I mean if you are truly an educated buyer you know you are paying for all of the overhead, sales commission and profit so you know that you can not and will not win when you trade. That's just the way it is. Now I am not going to say it never happens, but it is the exception not the rule or dealerships could not afford to be in business. So armed with the reality of this information the only way you would want to trade is if you did not want to, or could not stand by the vehicle you are getting rid of or you must sell it fast and the market is bad. To me that is too risky a chance.
So the thing to do is buy the item like you are selling it. Let me explain. Don't buy the basic model, it will not have appeal in the used market and will not command the top sales prices. Also never personally customized it, keep the item attractive to the general market. If I am looking at a two identical trucks and one is riddled with aftermarket stuff, has holes drilled in the body for a CB antenna or has a custom paint job, the color of your wife’s sparkling eyes, I will pick the other vehicle even if it cost more or has more miles/hours on it. If you price your used item realistically, it is loaded and clean and not overly personalized you can expect to get on the high side of the value between wholesale and retail. A note on pricing, I once had a friend who had his boat for sale. It was clean and loaded and he was asking retail. Within the first couple of weeks he got an offer for $3K less then he was asking and he turned it down, out of principle. Now that boat sat for the next 6 months before it sold. During that time he made boat and insurance payments that totaled $1,900.00 and at the NADA value dropped $1K and don't forget storage cost. So he ended up selling the boat for less then he would have 6 months earlier, all in the name of principle. Darn, did not mean to pontificate this long sorry.
My advice Sell it yourself, go into the new dealer without a trade and cut your best deal and never, never let him know that you have fallen in love with the item! Trust me if they are good they can tell.
