A month ago or so, I was fortunate to win a new Dodge Diesel 1 ton roping which is mind blowing.

But, we just had purchased a new pu a few months before that. Now we are trying to sell or trade the one we just bought with 6,000 miles on it. As per the lastest bids, we are going to lose anywhere from 9500 to 4500 on this deal. We have one local private party bid that is the highest, but once you add the sales tax loss verses if we trade it, would be better off to trade.

We have looked at trading it and our LQ for a new LQ (see previous post about the sticker shock) and that was cost prohibitive. Now we were looking at trading it and our stock trailer in on a new stock trailer--again, sticker shock.

I can understand the LQ market as supply is overran. But how can a 4 month old pu lose that kind of value? Do dealers really need to make 25% to keep the doors open?

I work with several ag equipment dealers and their markup on new is 3-5% and used 10%....

Thanks in advance for input.

It's not that the dealer is making that kind of margin. But rather that anybody looking won't buy a used truck unless it is seriously discounted from a new.  

When you consider that a new truck may cost $60,000, why would you buy a used truck for $58,000?   The difference in payments is almost nothing.  When you start to see a $5,000-$10,000 difference in values, Then you start to consider buying somebody else's problems.

Lets face it.  Most folks that see a used vehicle on the lot with 6,000 miles, the first question they ask, Is what kind of problems did they have to want to sell it so soon? Is it a lemon?

Your best bet is to sell it to somebody where you can explain why you don't need two trucks and how good of care you took of the truck while you owned it.  But still you have to over come the stigma that they could of had a New Truck for an extra $10 a month on their payments.

It's been my experience that there isn't I huge profit margin on most new cars. There is a little more on used, but there is also the potential to lose money with them too. The thing is with very late model used, low mileage, when you put it out on the front line to sell, it needs to be priced quite a bit less than new for folks to be interested. This time of year the manufacturers are offering incentives to get rid of the last of old inventory, and that has to be considered too. Otherwise, they will just buy new, current model year, 0 miles, with all the warranty. When you drive it off the lot, it really does become worth substantially less. It's just the market. When you add in the sales tax you paid, which doesn't add any value to your truck, you will be hard pressed to recoup what you paid. Trading it will as you found out, be a way to not have to pay so much sales tax on your new vehicle, but putting the numbers on paper as to what it cost you to drive it a few thousand miles and own it for a few months is pretty sobering. 

Bill

By the way, congratulations on winning the new truck!

Bill

Thanks for the replies. Always lear a lot from all!

I know, hard to find anyone to feel sorry for me with a new 50k truck in the garage. Best bet is to probably just keep both and drive the older one. Have one more deal we are looking at as far as trade but doubt will be any different.

Will probably advertise it a little more privately and drive it.