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FEH Arrived Today, But Trade-in Devalued
My 2008 FWD FEH that I ordered on October 10th came into the dealership today.
I was very excited, and went to the dealer expecting to sign a few papers and take the vehicle home. However, I was told that the agreed trade-in value of my loaded 2004 Jeep Grand Cherokee had declined from $13,000 to $10,000 since the FEH was ordered. Took about three hours and multiple after-work appeals to management to get them to honor the original deal. I will complete the papers and get the FEH tomorrow. As many of you have FEH's and MMH's on order for extended times, please be aware of this trade-in devaluation issue. It does appear that the car market is generally lower than it was a few months ago. |
Re: FEH Arrived Today, But Trade-in Devalued
Originally Posted by harrynew
(Post 154690)
However, I was told that the agreed trade-in value of my loaded 2004 Jeep Grand Cherokee had declined from $13,000 to $10,000 since the FEH was ordered. The few times I have traded in, there was always that disclaimer in the paperwork, that the dealer has the right to re-evaluate the value of the trade. I had always been paranoid about that clause, but for me, it has never been implemented. Real sorry about your trouble. However, I am sure the fun you will have with your FEH will more than make up for it, especially once you start getting over twice the mileage you did with the Jeep. |
Re: FEH Arrived Today, But Trade-in Devalued
The dealer certainly has a right to do this and there is generally some devaluation of used cars when the new model year arrives. However, this seems excessive. I would research the book wholesale value history on your Jeep and see what difference occurred between when you made the deal and today. It doesn't matter how much alllowance they are giving you, the only valid difference is between the book wholesale values.
I would be very hesitant to keep dealing with this dealer. I know my local dealer would never try this nickel and dime approach. |
Re: FEH Arrived Today, But Trade-in Devalued
IMO if when you see that devaluing clause in your paperwork for a new car order, tell them they need to strike it before you will agree to purchase a car from them. If they refuse, then just walk away.
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Re: FEH Arrived Today, But Trade-in Devalued
This is one hazard of trading when you're ordering into an unknown time frame. To protect themselves, usually the dealer leaves value open as described by Walt. Your dealer didn't do that, and now they may be paying too much for a used Jeep. Too bad for them.
When I was in that business, we would agree that trade-in would be determined at transaction time and pegged to book value. Assume the NADA or Kelly shows $13,500 when you order and we agree to $13,000 on that day. That's book minus $500. We agree that your trade will be similarly valued (book minus $500) at transaction time and you agree to take whatever that turns out to be. Risk is fairly shared. |
Re: FEH Arrived Today, But Trade-in Devalued
Originally Posted by harrynew
(Post 154690)
My 2008 FWD FEH that I ordered on October 10th came into the dealership today.
I was very excited, and went to the dealer expecting to sign a few papers and take the vehicle home. However, I was told that the agreed trade-in value of my loaded 2004 Jeep Grand Cherokee had declined from $13,000 to $10,000 since the FEH was ordered. Took about three hours and multiple after-work appeals to management to get them to honor the original deal. I will complete the papers and get the FEH tomorrow. As many of you have FEH's and MMH's on order for extended times, please be aware of this trade-in devaluation issue. It does appear that the car market is generally lower than it was a few months ago. |
Re: FEH Arrived Today, But Trade-in Devalued
What happened is that the saleslady I was dealing with wrote the $13,000 down on the order form. While there is a fine print clause on the backside allowing them to disclaim that number, the managers said she never should have entered an amount there. So, somebody screwed up in this case. But I was told today that no blame will be placed, and they allowed me the $13,000 and now I have the FEH.
Looking at the edmonds.com quotes from October and today, there was a drop in value of over $2,000 on my Jeep. Just something else to be aware of when ordering with a long lead time. |
Re: FEH Arrived Today, But Trade-in Devalued
All midsized and bigger SUVs have declined in resale in the last few months as the increase in oil from $60 to $94(over the last 7 months) has really taken hold.Everyone realizes that $3 gas is hear to stay.
Good thing you didn't have a used Suburban or Tahoe-they are great deals(if you are buying, but horrible if you are selling/trading).Smaller SUVs-CRV/RAV4 etc are doing ok.The Jeeps and Chrysler in general are known for poor FE unfortunately. This isn't a good time to want to sell a 4000+lb SUV. You did pretty well at $13000.The Ford will double your FE-can't beat that with very little loss in versatility/utility.It will be a great "roadtrip" vehicle,and not kill you in the city driving most folks do. You did OK. Luck, Charlie |
Re: FEH Arrived Today, But Trade-in Devalued
My almost-pristine 1999 Cherokee Laredo with low mileage (74K) only got me $3500 -- and I had to argue them up from $3000. The used car market is squishy as hell.
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Re: FEH Arrived Today, But Trade-in Devalued
Originally Posted by MrCrank
(Post 154827)
My almost-pristine 1999 Cherokee Laredo with low mileage (74K) only got me $3500 -- and I had to argue them up from $3000. The used car market is squishy as hell.
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