Negotiating the price of a new car

They are likely putting more in to the deal out of pocket. Between the tax, title, license and depreciation you are looking at least 20-25% after one year. For people that like to get new vehicles often then leasing is the way to go.

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If they are trading in, they should get the tax credit on the traded vehicle, so mainly just T&L, which isn't all that much. If you are a skilled negotiator, it's not impossible to accomplish, but you must have had to put a decent amount in on the first car, and it's likely subject to creep as prices rise and small losses accumulate.

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Does that hold true even for people that want to drive a new car every 3-4 years? Are they better off leasing as well?

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Yes, assuming you are buying a new car. Check the Sticky at the top of the board, there's a vehicle purchase/leasing section. I've posted considerable info on the topic. Leasing would be a great option here.

Wait, you pulled the ad because it was getting a lot of attention?

If you pulled an advertisement because it was attracting potential buyers, yes you need someone to do this for you.

The gap in price is to factor in condition, geographic region, time of the year, features, and the buyer/seller's ability to negotiate.

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I pulled it because I fealt like it was priced too low.

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Whose fault was that?

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I decided to keep the truck for another year & pay it off.

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Boom - now you're using your head. That truck has another 80k to 100k miles on it EASILY. Pay the new car payment to yourself for the next 4 to 6 years and buy the next car - cash.

"Upside down" is a function of the value of the vehicle and the amount of remaining debt.

I can buy a 20K car, finance 4K for three years and pay cask for the rest, and in a year, I'm not upside down.

That doesn't make it a smart financial decision, though.

You actually weren't too far off. If I wanted to move it fast, and without knowing what options your truck has, I'd let it go for around $13k. (Booked out the base model sr5 double cab)

A dealer is going to want it for around $10k or less.

To answer your range question...they are just different companies that value vehicles in their own way.

From my experience, kbb is a pos and is usually very seller friendly...most of your banks will use NADA...dealers will get their numbers from the black book, nada, and an auction market report.

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They are likely putting more in to the deal out of pocket. Between the tax, title, license and depreciation you are looking at least 20-25% after one year.

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This isn't the always case, at least not with my most recent transaction. I bought a 2012 F150 FX2 new. MSRP of $431xx, selling price of $293xx. Trade in value was $7500. So with TTL and factoring in the trade, I had an out the door number of roughly $24,000 ($31,500 without the trade). 2 years, and 32k miles later, I traded it in for $26k towards my current vehicle. I got a similarly good deal on my current car, so I didn't get hosed on either end.

So in two years, I only lost 19%, plus I only got hit with double taxes on about $3k (so not even $300 worth). If you get good deals on the new car and buy models that hold their value, you can trade every year or two and not lose out too much. Of course, you'll always have a payment (obviously not the case if cash buyer). But some people like to spend their discretionary income on cars. C'est la vie.