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Let's say for the sake of argument that you own a 10-year-old clunker. It's worth far less than $3500.
You're ready to move up but not to an equivalent new vehicle in the $30k range.
Is there any known or commonly accepted method of arranging with a dealer to exchange one's clunker for a new vehicle, sell the new vehicle to the dealer at slightly less than face value, and using the difference toward a new-to-you vehicle?
Are you saying that the clunker exchange has to go for an equivalent or better quality vehicle? That's not the way it worked in my case. The new vehicle has to get 'significantly' better gas mileage but I don't think there are any requirements that the new vehicle be 'better' otherwise. Maybe I'm not grasping your question. The dealers I went to seemed pretty freaked out by this whole process and are afraid of making mistakes so they will be very cautious.
Is there any known or commonly accepted method of arranging with a dealer to exchange one's clunker for a new vehicle, sell the new vehicle to the dealer at slightly less than face value, and using the difference toward a new-to-you vehicle?
Maybe you can pitch this to the local dealer who likes to shave his head like Howie Mandel. His commercials always have people asking him odd requests and he seems to always say, "Deal!" Make him live up to his words.
You could technically make a "straw man" purchase, probably not as part of the original deal, but you could do the CFC deal and either get a readily salable car or one that a friend actually wants, for discussion say a Focus. You could then trade the Focus for a used Camry, for example. No law says you have to keep the new CFC car.
You will end up taking the new car depreciation "hit" though, which could amount to most or all of the $3500 gain you get.
You could technically make a "straw man" purchase, probably not as part of the original deal, but you could do the CFC deal and either get a readily salable car or one that a friend actually wants, for discussion say a Focus. You could then trade the Focus for a used Camry, for example. No law says you have to keep the new CFC car.
You will end up taking the new car depreciation "hit" though, which could amount to most or all of the $3500 gain you get.
You mean a "straw purchase", which is bank fraud and against the law?
I think maybe he's getting rid of, say, an Explorer and wants to replace it with another Explorer.
No dealer is going to take a brand new, just sold vehicle in a trade like you described. You'd lose 40% and the dealer would have to explain to the next purchaser why he has a brand new vehicle with 20 miles on it in the used lot.
Let's say for the sake of argument that you own a 10-year-old clunker. It's worth far less than $3500.
You're ready to move up but not to an equivalent new vehicle in the $30k range.
Is there any known or commonly accepted method of arranging with a dealer to exchange one's clunker for a new vehicle, sell the new vehicle to the dealer at slightly less than face value, and using the difference toward a new-to-you vehicle?
It might be possible, but you're probably better off just negotiating on a used car. Used car sales suck right now, because a lot of people are doing the CFC deal. You should be able to get a very good price on almost anything.
Worse yet, if a dealer took back a brand new, but "used" car, they couldn't sell it as a CFC deal, meaning they'd need a full-price buyer looking for a car with no miles, for big money. Anything is possible, but I'll call this one extremely unlikely.
You mean a "straw purchase", which is bank fraud and against the law?
No, I mean the guy could buy a new car on CFC, own it for a couple of days to a couple of hours and then sell or trade it. I'm not a lawyer, nor do I play one on TV, but I don't see any obvious reason this would be illegal. It may or may not be practical, though, for the reasons stated previously.
The more I post with you the more certain I am that I will never buy a car, new or used, from a dealership, ever.
No, I mean the guy could buy a new car on CFC, own it for a couple of days to a couple of hours and then sell or trade it. I'm not a lawyer, nor do I play one on TV, but I don't see any obvious reason this would be illegal. It may or may not be practical, though, for the reasons stated previously.
Ah.
That is not illegal. Be careful with the word "straw" in car purchases.
Quote:
Originally Posted by M3 Mitch
The more I post with you the more certain I am that I will never buy a car, new or used, from a dealership, ever.
Why, because I am honest and won't defraud a bank?
Dealers would be lining up to destroy their business and their reputation to get involved in a screwy idea like this..!
If business is so good the dealerships are all out of cars, why would anyone get involved in a crooked deal with someone they doesn't even know...?
..and why would anyone buy your used car when they can get a band new one from the dealer...?
Preposterous idea from every angle.........
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Deal or no deal?
It may or may not be practical, though, for the reasons stated previously.
