Direct swap?

[NateDN10]

For several months my wife and I have been throwing around the idea of trading our '07 Subaru Outback (which is paid for) for a Mazda5. We have two kids in car seats, and the third row would be very useful.

Based on what KBB estimates our Subaru is worth for trade-in and prices on used Mazda5s, it appears that we could do a direct swap. Is this something a dealership would go for? Would we still have to pay tax?

 

[RamFan]

This is something my mom considered doing with her Sebring Convertible. Dealers didn't really go for it. Realistically you'd have to swap it for a vehicle that is valued less than your trade in. The dealer is going to do an oil change and "detail" it at the very least which costs parts, money, and time. Best thing you could do for a relatively even trade would be to trade it in and pay the difference right there on the spot if you've got the cash available.

 

[PhillyJoe]

It's apples and oranges with a dealer. If both cars are worth, pick a number $10,000, the dealer will offer less for a trade and charge more for the car on the lot. So the Subie is worth $8,000 to him and he wants $12,000 for Mazda. Sell your car privately and walk in with cash. Otherwise, he makes a profit on both cars.

 

[Smokescreen]

PhillyJoe is 100% correct.

 

[Hokiefyd]

Originally Posted By: NateDN10
Based on what KBB estimates our Subaru is worth for trade-in and prices on used Mazda5s, it appears that we could do a direct swap. Is this something a dealership would go for? Would we still have to pay tax?


With the miles on your Subaru, I would guess that the dealer is only going to offer "black book" or wholesale/auction price on it. They likely won't put a car nearing 100,000 miles out on their lot; they will probably auction it, and will only give you X% of what they think they can get for it (say 80% for example, to cover their expenses and desired profit).

So if you have a Subaru worth $7,500 on KBB trade, it may be worth $5,000 on auction. Maybe the dealer offers only $4,000 on it. And you would still owe taxes. You will always owe taxes. So if taxes on the sale were on the order of $500, you need to find a $3,500 car for your $4,000 trade-in to be a true "even exchange".

So in the end, a true "even exchange" on a car nominally worth $7,500 via KBB trade might end up being a car offered for half that or less. It's very difficult for the consumer to "win" in the car business, especially working through dealers.

 

[NateDN10]

Thanks, all.
I guess if we do move forward with this, we'll have to go the private sale route.

 

[crazyoildude]

one thing for sure if you can sell it to a cash buyer its better than going to a stealer.

 

[kkreit01]

In addition, if you really need a 3rd row, is the 5 really a good choice? I doubt 2 car seats would fit back there. It doesn't sound like adults fit well in the 3rd row either. MPG is not much better than a full-size,and acceleration is slow. I'd look for a used Grand Caravan -- which may be in the same price range.

 

[NateDN10]

Originally Posted By: kkreit01
In addition, if you really need a 3rd row, is the 5 really a good choice? I doubt 2 car seats would fit back there. It doesn't sound like adults fit well in the 3rd row either. MPG is not much better than a full-size,and acceleration is slow. I'd look for a used Grand Caravan -- which may be in the same price range.

Thanks for bringing that up. This video makes it look like it'd be OK. And from what I can see, used Caravans tend to cost a bit more than the Mazda5. Also they don't have the zoom-zoom.