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Fred Gorges
Fred M. Gorges, Following in his father’s footsteps, Fred is the fourth generation of running the Gorges family automotive business in Wichita. Fred began in the dealership as a lot attendant, throughout high school he worked part time in the parts, service and sales departments. Eventually, he left Wichita for Lawrence and attended the University of Kansas for two and a half years. Fred then went to Dallas and attended Northwood University, a small business college to study automotive marketing. He returned to Wichita in 1999 and spent four years learning the wholesale side of the business. Fred Gorges currently manages Gorges & Company Volvo located at K-96 and Webb Road. You can reach them by phone (316) 630-0689 or on the Internet at www.gorges.com. You can email Fred at fgorges@hotmail.com.
Cars, Trucks, Vans & Automotive
2006-08-01 11:46:00
Value of a trade-in

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ANSWER: The period of time a manufacturer keeps a body style, all depends on the manufacturer and how well that style is selling.  Usually Volvo will keep the same body style for at least four years, and just slightly revise it from year to year, to keep the consumer’s interest level high (i.e. exterior moldings, headlights, interior amenities, etc.).  Generally, when they do make the decision to completely change the platform of a vehicle, they will introduce the new platform for one specific model, and base the rest of the model lineup on that new platform over a period of time. 
The trade-in value of a vehicle is never improved when a manufacturer revises or discontinues a specific model.  The car market fluctuates quite a bit, and there is always a dip in value of a vehicle when its successor is introduced into the market place.
   QUESTION:  How do you know what the value of a vehicle is going to be from the time you purchase it until the time you plan to sell or trade it in?  Which is better as a consumer, sell it yourself or trade it to the dealer?
ANSWER:There is no way to determine what the value of a car will be from the time you purchase the vehicle to the time you sell or trade it.  Generally, if you purchase a new vehicle, it will retain between 45 and 65 percent of its value within the first three years depending highly on make and model.  The depreciation tends to slow down after the first three years.
QUESTION:  I enjoy driving a new (or gently pre-owned) vehicle, I recently traded mine in and they used the term “upside down” and then they said they would have to “roll over” some negative equity.  What does it mean to be “upside down” in a vehicle?  What can you do as a consumer to avoid this?
ANSWER:  The term “upside down,” simply means you owe more on the vehicle than it is worth.  There are several ways to avoid being “upside down” in your vehicle.  First, put as much money down as possible.  This is a good way to create instant equity in a vehicle.  Second, finance the vehicle for the shortest term possible.  This will minimize the amount of interest you pay on the vehicle, and increase the amount of principal you pay per month.  My favorite way to avoid negative equity is to LEASE!  When you lease a vehicle to term, you won’t have any negative equity.  The manufacturer is responsible for the value of the vehicle after you turn it back in to them.  Furthermore, most manufacturers will offer incentives to stay with their product, so in addition to avoiding negative equity, they will pay you to lease another vehicle! 

 
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