|
Clarke Co, Iowa | Well, that is a sticky question a year ago dealers were short of inventory and selling for sticker+ on new vehicles. Now the sticker price has gone up about 5% but they all have full lots again and are giving discounts and rebates. An SUV that listed for $50,000 last year and cost $50,000 to buy. But now a year newer lists for $57,000and has a $3,000 rebate plus a $7,000 discount and can be bought for $47,000. The problem is your 20,000-mile year old SUV. A year ago, the dealer paid around 40K for the SUV they sold it to you for 50K. That 10K went from your pocket to his pocket it had nothing to do with depreciation. Now your SUV is a year old and has 20,000 miles on it. Even if it was still new with no miles being a model year old it's worth 10% less than new plus even at 30 cents a mile you are doing good to get a wholesale bid of 10k less than original dealer cost. Normally you could trade for one year and 20K for 5-10K but remember that 10K the dealer put in his pocket last year it's gone so this next trade is going to cost an extra 10K. Someplace between $15,000 and $20,000 to trade. | |
|
What is a mile worth.
