Nervous about giving dealer my trade-in before new TA arrives...thoughts?

Bruce H. · Mar 9, 2014

The car on order hasn't been built and is still a month or so away from delivery, but the dealer has asked for my XKR convertible trade-in. While I don't expect there to be any issue with the new car or the dealer, it seems a bit risky to have already given up my trade, and not sure how a problem could be resolved upon delivery if I've already given up my trade. Thoughts on where I would stand if worse came to worse?

Bruce

ViperSmith · Mar 9, 2014

What are the risks? I'd assume if you don't get the car (for whatever conceivable reason) the money is yours. Safest bet to me is they pay you the cash for the trade in now and you use it towards your car.

VENOM V · Mar 9, 2014

No guts no glory, brotha! Carpe diem!

Todd

sambo32 · Mar 9, 2014

I thought all the TA were already built.

purenxs · Mar 9, 2014

Sounds like a bad deal! Dealer get's paid up front with no risk, and you get your new car at his terms. Does the dealer take immediate title & do you have a release of liability? If someone test drives your trade in and has an accident, or otherwise damages the car, is this now the dealer's problem? You can get out of the deal now without real consequences, if you turn over the trade in now, you're basically locking yourself in.

Chelseasnake · Mar 9, 2014

let the dealer have the car now. i do it all the time. sometimes he has had my car for 6 months before my viper comes in. once he gets your car, it is his problem. if it was with a dealer that i dont know, but that dealer is fine.

VRYALT3R3D · Mar 9, 2014

IF I may ask, which dealer did you order from? PM me if you don't want to say it publicly. Or if you want to not answer, that is fine as well.

Did you think of putting your Jag on Autotrader and see if it sells before your TA arrives?

Bobpantax · Mar 9, 2014

It really depends on the financial condition of the dealer and whether you need the Jaguar.

If you know with certainty that the dealership is strong and has adequate liquidity and that is unlikley to change during the time you wait for the TA, fine. But if you have any doubts at all regarding same, just reduce the value of the trade by whatever 30 days or however long it takes for the TA to arrive is worth and give your Jaguar to them when the TA arrives. Perhaps they will agree on a per diem amount. For example, let's say the per diem reduction amount is $10.00. If the TA comes in in 30 days, the trade value would go down by $300.00.

With that said, personally, I would never transfer a trade in until I at least had a date certain for the delivery of the new car even if the dealership was very strong financially.

ViperSmith · Mar 9, 2014

Only drawback I see is if you don't get credit for the trade in against tax

Bobpantax · Mar 9, 2014

Excellent point. The applicable local Provincial tax or Canadian GST provision, if any, may have time limitations for a trade in to be considered toward a reduction of the tax base that the tax rate is applied to.

Lawrenzo · Mar 9, 2014

Is your Jag free and clear or does it have a lien on it? If it has a lien the dealer should have problem cutting you a check for the positive equity. If it's clear he might or might not want to pay the full amount, but I'd say tough sh*t to that. Cut me a check and we'll go from there.

Chelseasnake · Mar 9, 2014

vipersmith said:
only drawback i see is if you don't get credit for the trade in against tax

you do save the sales tax

Bruce H. · Mar 9, 2014

Thanks for all your thoughts. The liquidity of the dealer is one I hadn't thought of. I'm not suspicious of the dealer at all, and Chelseasnake's positive experiences and recommendations led me to them. Doing a transaction in a clean and business-like manner would normally protect both parties adequately, and eliminate the "what ifs" that I guess I'm concerned with when turning over my trade in advance. If the Viper was damaged in transit, or at the dealer's before I take delivery, I wouldn't be in as good a position to protect my interests, or to perhaps cancel the purchase. I'll contact the dealer to ask if he can propose a solution, and if he can then I'll give him the trade early and hope it helps him out in selling it for the best price. The dealer is Islington Chrysler in Toronto, and my dealings there have been outstanding so far. The TA hasn't been built yet, with production intentionally delayed until mid-March, so delivery could be made in April to avoid winter delivery, and exposing the R-compound tires to freezing temps.

Bruce

denniskgb · Mar 9, 2014

Just put things in writing and trade car in. This is when you call the insurance and tell them to remove the car of the policy because it is traded. as long as you have all the paperwork in order you should be ok, as long as you do not need the jag. The dealer may not be liquid and floor planned up to their balls but they have insurance that would cover loss of the trade if that takes place.

Bobpantax · Mar 9, 2014

Keep in mind that the dealer is in Canada and the applicable law may be different than in the States. Also, insurance claims, assuming a policy is in effect and covers the default, even if available, can take time. Sometimes a long time.

Many years ago a friend of mine gave his car up in trade in a private exchange before taking possession of the "new" car. The person who received the car took it out of state and sold it. This occurred before my friend got the "new" car. That person then declared bankruptcy. He ended up with zip.

I am not saying that could happen here. But the long past event is a cautionary tale.

FLL-B/W-GTS · Mar 10, 2014

Please,I have had them want to do that we me on very expensive cars...No Way...To many thing can/do happen in todays world.Keep your Jag and your title close till your TA rolls off the truck and you inspect it...If they go broke , you are screwed...Never know what is happening behinds the scenes with the $$$$$

Leojmcca · Mar 10, 2014

Same time man, same time

vipernut · Mar 10, 2014

If the dealer is reputable ...and you don't need the car ....go ahead and let them have it. I traded my car in about a year before (to Wellington Motors in Guelph) I actually physically got my 2013 Viper. There were no problems! and I got my tax benefit.

denniskgb · Mar 10, 2014

Come on guys….he is not doing a deal out of someones garage on the side of the road, for crying out loud. Do the deal and go on why your life. Get your tax benefit, get your brand new viper and enjoy life.

GRANGER73 · Mar 11, 2014

Don't do it. Review the pros and cons. It's a no- brainer. 20 things could happen before your car gets there, and 19 are no good. Wait till you get your car.

Bruce H. · Mar 11, 2014

I've discussed with the dealer and he understands my reservations. SRT informed me that the car will start being built sometime next week and should be complete by around April 1st and head to shipping. Hopefully that won't take too long so we can complete the sale with trade-in early April.

Does anyone happen to know of other TA's that haven't been built yet? I assume this may be one of the last ones after seeing #33/33 white and #91/93 orange not long ago. It was originally allocated to Puerto Rico and scheduled for January production as #23/33, but was dealer cancelled in December, reallocated to Canada with SRT's help, and then production delayed to avoid winter dealer delivery and storage, and threat of freezing temps cracking the R-compound tires.

Thanks again for all the advice, and it looks like I'll be able to avoid giving over my trade in advance.

Bruce

Nsane1 · Mar 11, 2014

Sounds like you got it sorted, but I've never been asked, and would certainly not do it. Enjoy the TA and post pics!!

Nervous about giving dealer my trade-in before new TA arrives...thoughts?

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