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:D Why was your 2005 wing trade in value only $1200 less than I can buy a 2007 for with airbag and antilock brakes new?.Can you please advise me about this because I wanted to buy it .I just cant understand why they would give you 19,600 for a 2005,how many miles were on it? Bumper
 

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Hey Bumper, I suppose a few factors. 1. This is the fourth Goldwing, I've bought from them. 2. They know they can sell it, & it won't sit too long in the showroom. 3. They've always given me good deals. 4. Even though they didn't give me, what I had in the accessories, they did give a large amount for them. i.e. CB installed, TorqMaster pipes, Memphis Shades tall windshield, over 365 LED's installed. 5. Only 12k miles, 1 owner, never laid down, always garage kept. Should I go on? :wink:
 

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bumper said:
:D Why was your 2005 wing trade in value only $1200 less than I can buy a 2007 for with airbag and antilock brakes new?.Can you please advise me about this because I wanted to buy it .I just cant understand why they would give you 19,600 for a 2005,how many miles were on it? Bumper
Its all a $#s game... more for trade-in + closer to retail price on new bike = less for trade in + big discount for new bike.

Not to mention that many times they get "creative" on the financing.

Best regards,

Shane
 

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bumper said:
:D Why was your 2005 wing trade in value only $1200 less than I can buy a 2007 for with airbag and antilock brakes new?.Can you please advise me about this because I wanted to buy it .I just cant understand why they would give you 19,600 for a 2005,how many miles were on it? Bumper
You can make that trade in number as high as you want. All you have to do is raise the price of the new unit. Dealers do this all the time when a customer owes more than what their bike is worth. Banks and other lending institutions don't like to see negative equity on loan paperwork. This is no big industry secret and it happens every day. Raise the price of your $24000 Wing to $28000 and then you can show $19600 on the trade in. But leave your Wing priced at $24000 and only show $15600 on the trade (when the customer owes $18500) and the banks don't like that. As you can see, the difference ($8400) all comes out to be the same.
 

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Even with full list price he got one hell of a deal. Honda gets a mfg rebate for every unit they sell.
 

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Like Serial Thriller said, the trade-in price means absolutely nothing.

I was the CFO of serveral dealerships for 11 years and Fleet/Leasing Mgr for 2. "Blowing up (inflating) the numbers" is routine when the buyer is buried in the trade - owes more than the vehicle is worth. Trust me, no consumer can "make money" buying a new vehicle annually and trading it in on another one.

Two important events have HUGELY negatively impacted the financial future of many undiciplined consumers:

1 - The finance companies began offering extended loans on vehicles. First they went from 36 months to 48 months. Now they lend for up to 72 months (that's SIX years), maybe even longer. How long do you think it takes before the borrower has "real equity" in the vechicle? How much money the consumer "thought" he saved by making the deal will be lost because of the interest he'll pay over the life of the loan? Answer: all . . . and then some.

2 - Congress passed a law eliminating the deductibility of interest on our tax returns for consumer credit accounts (auto laons, personal loans, credit cards, revolving charge accounts, etc). The banks and mortgage companies saw this as a tremendous opportunity so they began offering no-application fees and quick-processing on home equity loans while touting the interest on this loans are generally tax deductible (see competent tax counsel regarding your own situation). So what do undiciplined consumers do? They borrow from a home equity loan to buy all sorts of depreciating "stuff" and fun things to do like vacations they can not afford any other way. Yes, I know the home equity loan rates are pretty low. So what! The one thing that most Americans USED to protect, the equity in their home, has been and is being squandered.

Being a published author of financial planning material and speaking internationally does not make me an expert. Anyone can do both. I have counseled people (usually pro bono) who are so deeply in debt that it is effecting their marriage, family, job, personal feeling of well being and their financial future. It isn't pretty. It's like not having to explain the gruesomeness of war to someone who has been there.

Is my post about motorcycles? You decide.
 

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Roughly $24,000 for a new one, $19,600 for a '05 with 12,000 miles on it plus all the extras, plus gasoline, comes to $4,400 depreciation alone, kinda expensive riding I'd say.
 

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skip h said:
I know a guy who buy a new car every three years and thinks he got a deal when the payments remain the same..
He is up to a 7 year loan now...
I can't believe this - we know the same guy! :shock:

Mike - great explanation. People would do well to listen to you. I don't discuss my finances, but let me just say that I agree completely about protecting the equity in our home.
 

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I'll second, or third protecting your homes equity. I've always said that if it all goes to pot I can still lay my head down and sleep at night knowing that it's mine, and no one will come knocking at my door with missed payments. I'm not very smart, but I thank God every night that He allowed me to do this.
 
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