Am I wrong to think my dealer is a money grubber? He lost a sale of a new G4.

[JimInMichigan]

I"m a bit pissed. We really like the new G4. $3000 off in rebates and discounts offered ( tomorrow is last day ). After price was negotiated, dealer only wanted to give me $6500 for my 2015 Mirage ES, loaded with all options but the navigation/backup camera ( 21+ K miles ). That leaves me with a $5000 roll over! No friggin way thats going to happen. Dealer admitted he would probably get $9000 for my old ES. Ok, so give me $8500 for the ES and roll over the $3000 difference. I dont mind the $3000 roll over considering I'm getting $3000 in incentives. He sells me a new G4 and makes $500 on the ES. Dealer wont budge on the $6500 ES trade-in.

So, In my mind, dealer makes profit off the G4 and profit off the ES. As it stands now, he isnt going to make any profit at all from me. Dealer crying he isnt making anything off the G4. I say bull crap. He isnt in the business to break even on a new car, so he wouldnt have offered the deal he did other wise.

I know I could sell the 15 ES myself, but I dont want the hassle ( and 2 car payments until I get the ES sold ).

[R01k]

They all are, otherwise they would be out of business.

[Cobrajet]

Offering wholesale and selling for retail is, well...completely normal in this situation. If you want full-ride retail for your used car, you have to sell it yourself.

The dealer isn't a money-grubber...this is just how the car business works. Only making a couple hundred dollars on each transaction is a sure-fire way for a dealership to go out of business. If you price your car at KBB.com, you will see three values: Private Party, Retail, and Trade-In. If they offered you full Trade-In value, then they were shooting you straight.

The dealer barely makes anything on the new G4, and $500 on your ES is barely enough to pay the sales guy and the guy in the detail shop...let alone keep the lights on in the showroom.

Trade in a car after only a year or two and you are pretty much guaranteed to take a substantial financial hit, and it is why people lease instead of doing this.

[JimInMichigan]

The dealer barely makes anything on the new G4, and $500 on your ES is barely enough to pay the sales guy and the guy in the detail shop...let alone keep the lights on in the showroom.

So if I sell my car, dealer makes just the little he makes. Dealer gives me $8500 trade in, he makes the little off the G4 and a little of my car. Even if he breaks even on my car, he did make money on the G4. As it stands now, he makes nothing ( from me ).

Lets even assume the argument that " so what, he will sell it ( G4 ) to some one else and make that little profit ". My answer to that is a bird in the hand is worth more than one in the bush. A sale to a customer and breaking even on the trade seems acceptable to me. I see no way the dealer goes broke breaking even on a trade-in, because he made the sale of the new vehicle.

[Cobrajet]

So if I sell my car, dealer makes just the little he makes. Dealer gives me $8500 trade in, he makes the little off the G4 and a little of my car. Even if he breaks even on my car, he did make money on the G4. As it stands now, he makes nothing ( from me ).

Lets even assume the argument that " so what, he will sell it ( G4 ) to some one else and make that little profit ". My answer to that is a bird in the hand is worth more than one in the bush. A sale to a customer and breaking even on the trade seems acceptable to me. I see no way the dealer goes broke breaking even on a trade-in, because he made the sale of the new vehicle.

I see what you are saying, and it makes sense to the layperson. Most dealership profit comes from the sale of used cars, and it has to be thousands, not hundreds, in order for them to stay in business. That is why trade-in values are pretty much standardized by outfits like KBB...you know exactly what to expect to get for your trade when you walk in. You are asking the dealership to bet $2000 that whomever walks into the dealership and wants to buy your ES will not haggle down more than $500. If they do, the dealership is stuck with the car or will be forced to lose money. Keep in mind also that not only does the dealership have to pay the guy that sold you your G4, he also has to pay the guy who sells your ES. He simply can't do that with the few hundred bucks Mitsubishi gives him for selling you a G4.

You are just not giving the dealership enough 'wiggle room' with your trade-in for them to be comfortable with the deal. You want them to hand you 94% of what they could hope to sell your car for...and selling it for that would be a 'best case scenario' for them. They may sit on your ES for a year and only be able to get $7500 for it. The result is they LOSE several hundred dollars on your "bird in the hand".

It isn't a gamble they want to take, and I can't say I blame them.

[Ranny]

The down side of our cheap to purchase ugly duckling new cars is that they have pretty bad resale value. I checked my 15 es manual with 6k mile on edmunds a while back and I think trade in was around 7k. That included about 1k bonus for the low miles. You might have been able to negotiate an additional 500 for your trade, but no way 8500. One must always approach new car buying with the trade in side in mind and negotiate each part of the transaction separately.

The only reason I bought my 15 was it was at rock bottom price in March 2016. I know I'll take a bath on resale. These aren't popular cars.

[MightyMirageMpg]

There's brand new mirages that sold for less than your asking for your pre-abused car that will loose much of its warrantee.

I'm sorry your upsidedown on your loan but the value just isn't there.

[Mossy1]

I"m a bit pissed. We really like the new G4. $3000 off in rebates and discounts offered ( tomorrow is last day ). After price was negotiated, dealer only wanted to give me $6500 for my 2015 Mirage ES, loaded with all options but the navigation/backup camera ( 21+ K miles ).

The only solution is to have someone wreck into you. Seriously I don't mean to make light of your situation, I am not in a trade position right now, but this happen to me earlier this year around April. I had a white 15 ES with about 4K mile on that I had purchased used locally for $10862 with state taxes and tags, a month later I got t boned at an intersection (other driver at fault) and the insurance offer was $12,954.88. Went out and got a close out Black 15 RF edition for less than that and pocketed the difference. So yes you can get full value but not at the dealership. Locally they have been running ads for a "trade up" special, offering as much as $9500 for my newest Mirage, still a lose for me from what I paid but would consider that a fair offer in trade especially if I was trading for an AWD or something. Best of luck to you!

[Top_Fuel]

...dealer only wanted to give me $6500 for my 2015 Mirage ES
...That leaves me with a $5000 roll over!

It sounds like you have a loan balance of $11,500 on a Mirage worth roughly $8,500 retail ($6500 wholesale). That's a bad position for you and a nightmare for a dealer who needs to find profit in the transaction (like Cobrajet explained).

Unfortunately, a 2 year old Mirage is going to be worth roughly half of its original MSRP. Because of their poor resale, these are one of the worst cars someone should buy new if there's any chance they may have to sell/trade before it's paid off.

From a financial standpoint, rolling negative equity into a new car purchase is a bad idea. Rolling negative equity into a new Mirage purchase is a really, really bad idea.

If you really want a G4, just keep your powder dry and wait for larger incentives as you continue to pay down your existing loan.

[Eggman]

Can you get financing somwehere else and sell your car yourself?

Incentives will be back. Be patient and be ready for them.