Trading in vehicle with worn tires? - Answered.

[Axlesup]

I worked at a dealership and we had a simple saying: if it has michelins on it buy it...

All they really care about is that the car runs and drives good, has a clean Carfax and no check engine lights.

They have professional detailers there that are going to detail the car no matter how clean it is when you drop it off.

Sure they might "make a list", but they were going to do that anyway if that's how they operate their business.

You can get a quote right off of autonation's website and they'll email it to you. You can go down to CarMax and get a quote too. Just in case you're going to a shady low balling type dealership decides to have some quotes in your back pocket.

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[Azmig88]

If you go to CarMax you’ll get a fair trade in price and leave with a check

 

[Old Ranchero]

Seriously, I just wanted to know how the dealer looked at tires on a $20,000 trade. I simply don't want to spend $400 on a new set of tires if it will make zero difference. Simply looking at cost-benefit.

sorry, but I think your calculations might be faulty here. In your opening post you didn't mention you owed $15k on the Escape. Nothing about financing or not? You also didn't mention the Condition you selected for the KBB trade in estimate. If it needs tires or other cosmetic stuff, it can't be considered XLNT top trade in value. If it has high mileage, leaking oil, alignment wear, cracked, chipped windows, rust spots anywhere (including inside door frames & tailgate, underhood), or anything noticeable inside or underneath by the evaluator it gets knocked down to wholesale- or even no value to the dealer.

Step back for a minute and look at it from the dealer side:

- you want them to 1st pay off your loan for $15k.
- next you want them to ignore needing tires + maybe other stuff.
- then give you $20k on your trade (which may be worth less based on evaluation)
- you may or may not let them finance you (you didn't say).
- you may be expecting them to sell you the Maverick for less than they could get otherwise depending on if you had a signed deal for agreed price. How am I doing so far?

The other poster mentioned them getting you on the Front End or back end of the deal- and that's exactly what I was told by friends in the business way back in the 1980's.

Another thing is I worked at a Cadillac, GMC dealer decades ago and watched and learned 1st hand how salespeople size up a person and a trade. They are thinking to themselves "how am I going to make $5k off this deal" right off the bat. Even more than that on Mavericks I bet going by all the Market Adjustments we've seen shamelessly added.

So realistically, the dealer knows immediately he's not making $ off you if he pays off your loan and has to sink at least tires and probably more into your trade + then you expecting $5k over what he just paid off on your old loan in the trade.

They are going to get their profit THEY want 1 way or the other so just be prepared for things to go off script from your hoped-for best-case scenario. Be prepared to pull the trade angle off the table and sell elsewhere.

Good Luck either way!

 

[Azmig88]

My ¿guess?—- You’ll be lucky if they pay off the 15g you owe.
In the grand scheme of things, the existing, or replacement tires, are a negligible factor. They WILL make money on the deal
And they’re ALLOWED TO make money on the deal.
Go in there and see where you’re at. Then either buy the Maverick, or don’t buy it. That’s pretty much what it comes down to. Seems you might be out thinking yourself. Try not to make it more complicated and difficult than you need.
Worse case scenario?
You keep your existing vehicle

 

[commadorebob]

- you want them to 1st pay off your loan for $15k.
- next you want them to ignore needing tires + maybe other stuff.
- then give you $20k on your trade (which may be worth less based on evaluation)
- you may or may not let them finance you (you didn't say).
- you may be expecting them to sell you the Maverick for less than they could get otherwise depending on if you had a signed deal for agreed price. How am I doing so far?

My calculations are simple. The current dealer trade-in value for the Escape at its current condition (disregarding the tires) in my market is $20,000. The private party is higher and the actual used price is stupid. Seriously, same Escape as mine with similar mileage at a used dealer across town is close to what I paid for mine three years ago.

I also have a loan for $15,000. Assuming they give me the current dealer trade-in value based on the current condition of the car, I will net $5,000. Honestly, as long as I'm not upside down, I'm happy.

I'm strictly looking at the tires in a vacuum.

If the tires will make no difference on that $20,000, then it makes no sense for me to spend $500 now because between now and the trade, I'm out $500.

If new tires will make a difference and it is $500 or greater, then I will get new tires because the return on the $500 spent now is more than not spending it.

I didn't say the rest of the items you listed because they don't matter for this conversation. I was simply asking how a dealer looked at tires. Yes, they look at them and it matters a lot; or, no, the dealer couldn't care less about your tires.

That's all I was asking.

And FWIW, I'm getting new tires for the Escape. I just really wanted to know if I am eating that $500 or not.

 

[RLmesc]

Okay, salvage yards get nice tires all the time, from wrecks. They will swap your tires for their 1/4 used set for less than the cost of new and you can excuse yourself from that entire conversation. I always have a summer set (from the mfg co) and winter tires/wheels (for the gods that wish me hell). I keep the winters for re-sale, my summers are only 1/2 worn for the miles on the car and the dealers always think that I was real light on the wear cycle. I sell the second set (if they don't fit the next buy) for 40% of new to another owner. Everyone is happy.

 

[billbillw]

Bob,
Which value are you looking at on KBB? From what I've learned over the years, the KBB trade in value for "Good" condition is most closely aligned with the Manheim wholesale pricing and that will probably be the upper limit the dealer will give you (unless they pad the deal somewhere else).

 

[commadorebob]

Bob,
Which value are you looking at on KBB? From what I've learned over the years, the KBB trade in value for "Good" condition is most closely aligned with the Manheim wholesale pricing and that will probably be the upper limit the dealer will give you (unless they pad the deal somewhere else).

This is from NADA. I was being conservative with the $20,000 already.

This is KBB with just "good" condition for a vehicle that (other than the tires) is in excellent shape since it lives in a garage. I was being conservative by selecting just good:

 

[billbillw]

OK, Yeah, $20k should be your minimum for sure.

 

[Old Ranchero]

My calculations are simple. The current dealer trade-in value for the Escape at its current condition (disregarding the tires) in my market is $20,000. The private party is higher and the actual used price is stupid. Seriously, same Escape as mine with similar mileage at a used dealer across town is close to what I paid for mine three years ago.

I also have a loan for $15,000. Assuming they give me the current dealer trade-in value based on the current condition of the car, I will net $5,000. Honestly, as long as I'm not upside down, I'm happy.

I'm strictly looking at the tires in a vacuum.

If the tires will make no difference on that $20,000, then it makes no sense for me to spend $500 now because between now and the trade, I'm out $500.

If new tires will make a difference and it is $500 or greater, then I will get new tires because the return on the $500 spent now is more than not spending it.

I didn't say the rest of the items you listed because they don't matter for this conversation. I was simply asking how a dealer looked at tires. Yes, they look at them and it matters a lot; or, no, the dealer couldn't care less about your tires.

That's all I was asking.

And FWIW, I'm getting new tires for the Escape. I just really wanted to know if I am eating that $500 or not.

I know your calculations are simple and that's why I was pointing out all the other considerations dealers have in evaluating your situation. Flat out if they can't put it on their lot for $5-10k more than they have in it the next day with nothing more than a detail, those tires are a huge Red flag and they most likely won't even want it at all- too much trouble for them with no gain. Well known in industry used cars are where all the profit is. You don't want to hear it apparently, but if spending a few hundred $ upfront to put new tires on is a deal breaker for you before trading in, don't go the trade in route and sell to Carmax, Carvana to maximize your return on the Escape. The dealer has no reason to do this deal with you and help you "net" $5k with nothing in return.

 

[Jackovalltrades]

This is from NADA. I was being conservative with the $20,000 already.

This is KBB with just "good" condition for a vehicle that (other than the tires) is in excellent shape since it lives in a garage. I was being conservative by selecting just good:

I think you're being conservative if you're counting on KBB or NADA values for trade. Dealers work with Black Book (wholesale) values in determining your trade-in. My guess is that they'll try to offer you 15 to 17k. The used car market of the past 3 years has been a crazy roller coaster. I'm curious as to how you fare out.

Best of luck in maximizing your trade Bob!

 

[BostonMaverick]

This is from NADA. I was being conservative with the $20,000 already.

This is KBB with just "good" condition for a vehicle that (other than the tires) is in excellent shape since it lives in a garage. I was being conservative by selecting just good:

Save yourself a lot of heartache and bring your trade to your local CarMax for a valuation. Follow up with appraisals from online retailers like Carvana, Vroom etc. Take the average value from them and compare it against your expectations. The numbers you receive are likely going to be lower than you what expect.

It is in your best interest to have actual cash offers in hand before you visit with your dealer as this will help you save a lot of time and maximize their trade offer.

 

[MakinDoForNow]

Tires. My Escape needs new tires but after looking at KBB this morning, trading it in for the Maverick is a no brainer (I'm going to net ~$5,000). So, how much will the tires hurt if I don't replace them ahead of time? Will the dealer hit me for just the cost of the tires meaning my net out of pocket would be the same either way, or will the tires be discounted in the trade enough to make getting new ones beforehand worth the investment?

Don't know if it's worth it but you could check UTIRES.COM for used tires. About 1/2 or less and free shipping. They show remaining tread depth. They also have full depth "one trip used" tires.

 

[commadorebob]

Closure for those wondering: I ordered a set of Falkens at my local @Discount Tire. They had the best price and still gave me a military discount on top of it. So, I expect my return on investment to at least break even.

 

[Discount Tire]

Closure for those wondering: I ordered a set of Falkens at my local @Discount Tire. They had the best price and still gave me a military discount on top of it. So, I expect my return on investment to at least break even.

Thank you for the updates. We do appreciate your patronage.

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