Never traded in a vehicle, but you dont have to pay the taxes on the trade-in value correct? Say if you are buying a car for 50k, and your trade-in is 20k, you only pay the taxes on the remaining 30k. Is that correct?
That is correct.
Also, I usually trade and I usually get close to the price I am looking for because I am patient, willing to leave, sit for hours, wait a few weeks, etc. In other words, negotiate. I'm not an **** about things, but I have a price in mind and I stick to it. I recently made a deal on an Acura. In the beginning of the discussion we were $5,000 apart on the deal and they said it was the best they could do. I left in a nice matter of fact manner. A week later they called with another $2,000 off. I said I would look at it again. I stuck to my numbers. Finally, they came down another $2,800 and I went up $200. So, lesson learned. They came down $4,800 off what they said was their best deal. This has happened numerous times over the years.
If you are not willing to do these things, you will not get the best deal you can most of the time (unless they have too much in the used car). Also, I have developed relationships over the past several years where the dealer knows how I like to deal and basically will tell me if it can or cannot be done on certain cars (in other words, they have too much into their car and can not meet my price). I understand completely and in some cases still made a deal at a slightly higher price if I really want the car and cannot find it anywhere else at a better price.
I can say this about John at Roanoke, the last couple times I have bought a car from him the price he came out with first ended up being the final price (this has never happened anywhere else). The deals were open, up front, and fair. As I buy cars in the future I will continue to go to John. He has earned my trust and business. Most other dealers around here I have to fight for a good deal (and I will do that or leave).
