Looking to trade in and upgrade my 2017 Audi Q3. Car websites say it is worth between 2.2 – 2.5 million yen. Went to a major car dealer yesterday looked at a vehicle worth 5.0 million yen. They said my Q3 was worth 1.25 million yen !! Really? I showed him my research, he just looked at me. They want to possibly make 1.0 million yen on a trade in? This is not my first rodeo, so I just walked out. Is this the new normal or did I just get a bad dealership? I realize this may be a bit of a niche question, but any help is appreciated.
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Normal, if you went to a major used car dealer, they do their best to screw you over with a smile. OEMs not so sure.
This literally came up a few days ago.
If you want 2.5 mil for it, sell it yourself.
You need to realize that they won’t just buy your car, do nothing to it and turn around and sell it for 2.5 mil. They need to repair it, give it shaken, clean it, then store it until someone buys it.
It might be selling at 2.2 right now, that doesn’t mean they are going to take it at that value (goo-net lists 9 units, 2.2 are 1.4L, 2.5 are 2L). They need 30-50% atleast to stock it, clean it, and take the risk on its current state. You’re also forgetting turn over… would YOU buy your car right now for 2.2? Audi buyers are more likely buy new than used right….
Keep in mind this would be a very different discussion if say you were talking about a domestic brand in need (Like an suv or something). I could probably get goo-net prices for my x-trail from the dealer, as there would be no risk to them, and it would be on the lot a week tops.
If it’s not your first rodeo, you should know to shop around.
Offer seems low to me as well, but it depends on the mileage and condition of your car .
Not sure about your car in particular, but I bought a new BMW Z4 in 2020 for 7 million yen.
I have 10k km on it. On sites like Kakaku/Goo net it is worth 4.5 to 5.5 million. I was curious to see how much I would get for it and requested a few used car companies to give me a quote. Big motor, Gulliver and Car7 staff came to my house to offer a free quote of the car. The lowest was 3.5 and the highest 3.9 million. Only my Alcon BMW dealer was willing to buy it 5 million from me but only if I would buy and new car from them.
So even if people are saying used cars are expensive nowadays, car depreciation is a thing and you would usually get less than the prices on sites like Kakaku.
(I kept the car by the way)
Basic rule of thumb is that dealers or used car shops will never offer more than half of what they think they can sell it for. US is exactly the same (I had a roommate in the States who worked for a car dealer).
With gas prices where they are now, luxury cars are a dime a dozen. If it’s a clean diesel, you might be able to negotiate upward.
If they would pay you what it’s worth, why would they buy it?
Car dealers will only give you a fraction of the market value of a used car because they want to make a profit when they sell it. My husband traded in his old X-Trail for a new one earlier this year. We saw his old X-Trail on their used car lot a few weeks later at a price that was four times higher than the trade-in credit they gave him. When I traded in my old kei car for a new one last year they gave me a trade-in credit of just ¥20,000. If you want to get market value for your used car you have to go through the hassle of selling it yourself.
Put it on Facebook marketplace or Yahoo for 10-20% below market value and you might find a buyer.
Dealers are sharks. They are out to make as much money as possible. Can’t blame them but don’t need to support them.
That might not be a terrible offer considering the value of the new car and that you approached them about this.
I had a similar, unsolicited offer on a BMW yesterday although I was only in for a service. This would have been trading in against something costing close to 10mil so they had more margin to play with.
They offered similar to what I got last time I traded in. which was something twice as old with double the mileage. They want to start by low balling so you think you’ve got a deal if they increase it a bit.
I don’t enter such negotiations unless it’s essential. And as he pissed me off I’m already planning to shop around and buy my next BMW from another dealer as a result.
in your situation. I suspect you won’t get more than 1.25 from any dealer but could likely push for more as part of a trade in. If you like lengthy teeth sucking sessions..
People willing to pay 2.2M for your used car are looking to drive your vehicle for their own use. Dealers are looking to resell every used car they get from trade ins and they won’t make money if they give you the market value.
> This is not my first rodeo
Seems like it might be…
You aren’t in a country where used car values are particularly high. They will not give you more than they are absolutely confident they can sell the car for at a wholesale auction, since that is likely where the car will end up.
Tough to give you a value without knowing more about your Q3 (specific model, cosmetic & mechanical condition, accident history, mileage) but 1.25mil doesn’t seem unexpected or unreasonable for a 6 year old Audi Q3 in Japan.
Tbh I wouldn’t buy a q3 for 2.2-2.5mil, resale value of foreign cars are pretty bad too.