As a local car sales expert at Jalopnik and a professional car buyer, I get emails. Many e-mails. I have selected some of your questions and will try to help you. This week we’re discussing used VWs that have never been driven and how it works when your trade is worth more than the car you buy.

First of all, how is it that there are so many used VWs that look like they are still “new”?

“One thing I’ve noticed everywhere is the incredible amount of new 2014-2018 Volkswagen that are for sale. I mean, on any car, you can find a few underdogs left over from a couple of years ago, but I’m talking tons and tons of VW. Why? It doesn’t make sense to me. They are also at all other dealers. What’s happening? Most are marked as CPO, but all are less than 100 miles on the clock and have no registered owners. They are all across the country and I am so confused why there are so many leftovers.

Why is nobody buying this? Especially with the shortage of cars. You could get such a good deal. “

This made me curious, so I did a nationwide search for used VW 2014-2018, then sorted by mileage from low to high. The first four pages of the results were cars about 100 miles or less. The reason these used cars appear “unused” is likely because when the car was new in the parking lot for too long, the dealer marked the car “sold” in order to get credit for sale that’s likely in to hit some sales for the month. This car is then included in the used fleet and is usually marked as a CPO.

Despite the fact that you have used cars that barely have miles, most of these units are not really “deals”. Most of these cars have asking prices near their original MSRP. Remember, these are three year old cars now, and while VW is 6 years old/72,000 The miles guarantee was very generous for models from the 2018/2019 model year, paying almost the full retail price for a “used car” does not seem cheap to me.

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Next Up, How is the math supposed to work when the trade-in is worth more than the car you’re buying?

“How does it work when you trade in a vehicle that is worth more than the new one? Especially if you have positive equity and owe less than the retail value offered by the trader?

Lately I’ve been thinking that maybe I could take my 2019 Subaru STI’s equity and swap it for something smaller, cheaper (and much better gas) like a Miata. Because Miata is always the answer, isn’t it? Well, I think I was very wrong about this idea.

Most people trade in an older car for a newer one. This older one is usually worth significantly less than the shiny new one at the dealer. If the trade-in is still funded and the buyer is upside down, that difference is rolled into the new loan. I know already. I was young and stupid.

But what happens when the situation is reversed? The value trade is higher than the EIA of the new car?

I currently owe $ 29,500 for my STI. A local Mazda dealer offered me $ 33,500 to trade in an MX5 with an MSRP of 31,000 at 0.9% interest. With no additional down payment, this resulted in $ 580 per month for 60 months. Something didn’t seem right there. I went. By my calculations, $ 580 for 60 months at 0.9% means the loan amount is about $ 34,000. I understand that the trade-in will save me about $ 2,600 in taxes, so I can’t figure out how they got from 31,000 to 34,000, especially when I’m positive at $ 4,000. No breakdown was provided so I can only guess what to pay for. Is that this fancy dealer math? Am I missing or forgetting something simple? What do I not understand here? “

In this particular case, if you have equity in your car but have a loan balance, just take the equity amount and reduce it from the vehicle’s selling price. Then add up your taxes and DMV for a full total. In most states, if the trade-in is worth more than the replacement purchase, you don’t pay any tax at all. I agree that the calculations you have made do not work out, and I would only assume that the dealer “packs in” some extras like warranties and service plans at this total price to drive up the costs. As you pointed out, no breakdown was provided. So you should keep shopping and find a store that honestly gives the numbers.

Having a problem buying a car that you need help with? Send me an email at [email protected]!