paying for a car
we are in our mid 60’s. I’m retired,my wife is going to work 2 more years. We want to sell 2 cars and buy 1 new one. We can afford to pay cash, but is that the best way to go as that money begins to depreciate right away?
Terry Says
First, you have to make sure you are getting the right price for your used cars. You’ll likely want to trade them in at the dealer, and the dealer is going to underprice them! But you don’t want strangers coming for a test drive.
So your first step is to go to Kelly Blue Book (www.KBB.com) to see the market value of your old cars, based on condition and mileage.
While you’re there, check out the REAL price of the new car you want. Now, as we move into the new model year, car dealers are making better deals as car-buying has slowed.
My suggestion is to walk into a dealer and get a written price — everything included with all closing costs — if you were to pay cash. Then walk out!! They will try to give you an even better deal. Get the best CASH price. Then say you’ll think about it– even if they tell you the “car will be gone this afternoon”!!!
Then you say “Ok, Well, I’m thinking about selling my old car to my newphew. It’s right outside. How much would you give me for it??” (You already know the real value!). If he underprices the car by a lot, you can walk away again.
Remember, these guys are the professionals and you are the amateurs. But they might not know how much you know about the true costs and values. There are a lot of moving pieces here. But if you can handle this as I’ve described, you can always sell the other old car privately — or online. This is your chance to get the edge. Paying cash ALWAYS gives you the edge.
Don’t be afraid to try this on more than one dealer!!!
