So you want $10,000 for your 2003 Kia Spectra? Riiiiiiight.

[SDRonEbay]

All right, let's talk about your replacement vehicle.

Oh, it's a Kia? And you've got 2000 miles on it?

Book value? Yeah, they say its $5000. We ACV'ed it at $1500.

Does this sound familiar to you? If it does, YOU SHOULD NOT HAVE BOUGHT A KIA! That's why I'm here today. We're gonna talk about replacement vehicles....AKA The Trade.

First of all, if you're going to a dealership to purchase a vehicle and you want to know how much your trade is worth...don't go to http://www.kbb.com or http://www.nada.org or any other website that gives you an estimate. The fact is these same companies send us books with things to look for on YOUR trade to knock down YOUR appraisal. So when you come with YOUR printout from Kelly Bluebook or NADA we can get the same printout and then we pull out or books and show you where they tell us to take away your money. It's not a bad thing or a good thing...it's business. I've said it before, any good car man will tell you he's in the business of selling cars, not buying them.

Now, if you read up on leasing then you would know at least one way to ensure that you are not one of the many upside down customers driving on the roads today. If you are not currently in a lease then you are most likely in that majority. Now, there's more to keeping value on your trade than just getting your oil changed or buying new tires. The fact is those are things you're supposed to do anyway. It's called preventative maintenance. You shouldn't expect a cookie for doing what you're supposed to do anyway, right? In the long run if you're putting in too much money in preventative maintenance then it's probably time for you to trade out anyway. So, here are some good ways to avoid being upside down:

First and foremost, check out your leasing options. Refer back to the "Nissan Signature Financing" post.

Finance as little as possible. Even if it means paying more cash down than you planned.

If you have damage that is covered by your insurance, don't go blow your insurance check at the mall....get the work done to keep your vehicle looking nice. A good appraiser will know when there has been repairs made but if the job was done well (usually at a certified service center or body shop) it will not hurt your appraisal that much.

Keep up with all your service receipts and warranties on parts or labor you had on your vehicle. Some extended warranties you can cash in and use as down payment.

That preventative maintenance I told you about...it's important too but don't rely on it to get you book value on a car because it doesn't matter. Same thing for aftermarket accessories. Even though it has the potential to be a wise investment....it won't hold the same value to the dealer as it will to their next buyer. So you might get lowballed on your trade and then it gets sold for much higher.

Last but not least, take some time to study the vehicle you buy. A lot of people don't like to buy first year models, but I'd rather buy a first year model and have a few warranty issues than buy a last year model that lost it's value when production stopped to make way for a new body style. (i.e. 2004 Xterra, Frontier, Altima and Pathfinder).

Just take this stuff let it marinate a while. And for all that is holy and sacred...stay away from Kia, Hyundai and Daewoo. If it's a last resort because of financing that's one thing but if you just don't want to pay an extra $50-$75 to get into a Sentra....you'll be paying out of your arse later on.

Shift_Ladies and Gentleman

[PalmerWMD]

Good job Jayson!

Fred...

[SDRonEbay]

Thanks, Fred.