Trade in value higher than new car, Cashback?

[Rick_1138]

Hi folks, this is a bit of a hypothetical question that I am simply genuinely curious about and as there are a few finance and car sales folk on here I wondered if someone could answer a question I had about trade in and value differences when its positive balance.

To explain I will use a basic hypothetical set of figures:

Trade in car Value by dealers say £5000

Used Car for sale at £3000

Bar fees and some other bits n bobs I would expect, say there was a £1000 left, would the dealer give this to the buyer as part of the trade in.

i.e. I give a £5k car to dealer as trade in against a £3000 car would I get the difference as cash.

I have never been in the situation and when I change my car next year I will be selling the 350 probably privately but if a nice trade in opportunity comes up for the value of the car I would go for that, it was as I was thinking about trade ins and such I was curious about the issue of a higher value car being traded in against a cheaper model etc.

Cheers folks, I am simply curious

[P-Jay]

Yes, actually getting cash out of a dealer...

[Rick_1138]

Its one of those, well if I don't ask I wont learn questions.

When I trade in it will be for a car worth about the same value as the 350 is worth at the time.

This was just out of curiosity if it actually happened or a case of you would never see the diff in cash, odd deals or some offers would be made that ends up costing the diff.

[onesickpuppy]

Yes, they will give you the cash. They'll still have your car at trade value whichever way you look at it.

[oldnbold]

Most main dealers wont have a problem. I took a RR Sport in that we valued at £39K against a new MX5 at £19k. Customer picked up his new car and a cheque for £20k.

It doesn't happen everyday and dont expect top dollar for the car you are PX ing.

The RRS was sold about 7 weeks later for £45k ish IIRC.

Edited by oldnbold on Thursday 3rd October 13:05

[Rick_1138]

Yeah that's how I thought it would work, i.e. my 350 is probably worth private about £10-£9k area as a very rough guess as a private sale so dealer would offer anything in the range of £6-£8k?? say. Again I am just making rough estimations.

So it wouldn't make much odds to me as I would be looking at £9k max so would be better private selling, but I was just curious, mainly if I trade in my bike as its only 1.5 years old for something older from a dealer.

So I wanted to ask.

Very informative folks

[mcflurry]

Toybota gave me a £1000 cheque when I part exchanged my smart with them.
The trade in was in line with the guide price, as had already been underwriten elsewhere