Trade-in question

[troisib1]

I posted here once or twice regarding a ring that I am trying to sell. I''ve received great advice for which I am extremely grateful. I am not hurting for money right now, so I am willing to try different things to recoup as much of the ring''s value as possible. I would like to bounce this scenario off the group to see if it is a good (and realistic) option.

I''ve read a lot of comments on this forum suggesting that trading in your ring is the best way to recoup the most out of your old ring. However, being that I love the single life right now I don''t see a trade-in as a likely option anytime soon. A few of my friends, on the other hand, may be in the market for a ring sometime in the near future.

So here is what I propose. My friend goes to ABC jeweler, picks a ring that he is happy with and negotiates the price (after consulting Pricescope of course). He then negotiates a trade-in price for my ring. We split the difference between the cash price I was offered for the ring and the trade-in price. He essentially gets a better deal based on his cut from the trade-in and I realize more than I would with a straight cash offer.

My questions to the group are:
1) What % of B&M (or online) retailers allow trade-ins for rings not bought at their store? This is only good option if my friend isn''t limited in his search for his "perfect" ring.
2) Would they allow someone to trade-in a ring if it isn''t that person''s ring? Should we be upfront about the situation or should we even mention this? At the end of the day a ring is a ring and the store would receive all necessary documentation.
3) What would be a realistic expectation for a return via trade-in given the current situation:
Trade-in Diamond: 1.4 carat emerald cut, approx. 1b cut grade. J, VS1.
Purchased for $5K, appraised for $9,200, cash offer $2,700. Pricescope comps low-4K''s to mid 5K''s.

Thanks again for all of your help.

 

[Rank Amateur]

I'm going to guess that the trade in offer won't be much better than the cash offer unless the vendor is simply playing games with the purchase price to make the trade in offer look better. Sort of like not coming down off the sticker for a new car and the dealer "giving" you more money for your trade in.

If a vendor will give just "X" cash price why would he give more as a trade in? If he DOES offer more for the trade in then your friend gets the short and of the stick by not getting the best price for the new ring.

 

[oldminer]

The pure complexity of your dilema makes a concise reply very difficult. I'll try to make the pain as short as I can.

1. Your ring has a range of actual cash value for outright money or as a trade. This is a rather narrow range. In other words, the liquidation value is pretty much a fact of the market. You already have a handle on this.

2. The ring someone wants to buy must be priced first, as you have suggested. Get the lowest and best price BEFORE you ever show your potential trade in. Otherwise you will never know any of the right costs and trade in values. The same can be said for trading a used car for a new car. Do your homework and don't be blindsided by being put in a pressured situation.

3. Your efforts at increasing the amount of money you'll get are innovative and commendable. Only if the dealer is making a larger than minimal profit can you potentially realize any increased money from a reduction in actual selling price created by your surprise trade. It could work but I would say it probably won't be much help.

My true suggestion is for you to put the diamond away safely until the right lady comes along. THen trade the stone in for a fresh one for her. At least you will be getting a certain reward for then taking the necessary loss. Besides, its sort of like savings, a down payment in a way. That may be your best bet. Good luck!

 

[JohnQuixote]

Date: 10/10/2005 11:39:30 AM
Author:troisib1
I posted here once or twice regarding a ring that I am trying to sell. I''ve received great advice for which I am extremely grateful. I am not hurting for money right now, so I am willing to try different things to recoup as much of the ring''s value as possible. I would like to bounce this scenario off the group to see if it is a good (and realistic) option.

I''ve read a lot of comments on this forum suggesting that trading in your ring is the best way to recoup the most out of your old ring. However, being that I love the single life right now I don''t see a trade-in as a likely option anytime soon. A few of my friends, on the other hand, may be in the market for a ring sometime in the near future.

So here is what I propose. My friend goes to ABC jeweler, picks a ring that he is happy with and negotiates the price (after consulting Pricescope of course). He then negotiates a trade-in price for my ring. We split the difference between the cash price I was offered for the ring and the trade-in price. He essentially gets a better deal based on his cut from the trade-in and I realize more than I would with a straight cash offer.

My questions to the group are:
1) What % of B&M (or online) retailers allow trade-ins for rings not bought at their store? This is only good option if my friend isn''t limited in his search for his ''perfect'' ring.
2) Would they allow someone to trade-in a ring if it isn''t that person''s ring? Should we be upfront about the situation or should we even mention this? At the end of the day a ring is a ring and the store would receive all necessary documentation.
3) What would be a realistic expectation for a return via trade-in given the current situation:
Trade-in Diamond: 1.4 carat emerald cut, approx. 1b cut grade. J, VS1.
Purchased for $5K, appraised for $9,200, cash offer $2,700. Pricescope comps low-4K''s to mid 5K''s.

Thanks again for all of your help.

The answers to questions 1 and 2 will depend on how the establishment you approach is managed. I would venture that an independent or family-owned business might present better opportunities than a large chain in the circumstances you describe.

Question 3: Here is a link to a good overview by Richard Sherwood, one of our PS appraisers.

 

[flutterby]

I have traded in a ring and I can say it is nearly impossible to get your money back. I looked into various avenues. Eventually I found a local jeweler that was willing to take it in as a trade as long as the trade in value equaled what we paid in something new. So she said the max she would trade it in for was $4,500 I had to purchase something of $9,000 to get her to apply the whole balance. My ring appraised at $10,500 (paid $8000) and after everything we were very glad to half of the value for it.

 

[valeria101]

Wait a minute... why not just sell the diamond or the ring as is to a friend, if you know they are looking? After a good amount of time around this forum, you may know what sort of prices your friend may be facing for comparable goods. If your stone is an ideal cut, chances are Craig List and Ebay will not be rife with matching offers at half what you paid.

After all, you must have done lots of homework to find a better price yourself and had good reasons to make that particular purchase. IMO, show them the ring, make a price comparable to current estate sales you may find three clicks away and let them try to match it. Usually, you will get the frind comming back asking for a bit of further discount after they found something in a shop - your offer and a potential bargain will be 'with them' while shopping and that might be all it takes to tip the balance.

If someone else could go to the same seller you have for a larger / different diamond that would qualify as an upgrade over yours, why not. The friend would make you a small favor - matching your contribution of recommending a good source and volunteering that rare diamond buying experience

If this also makes it cheaper for them , all for the better. This doesn't seem different from a normal 'upgrade' to me

Just a random idea...

Is it really urgent? maybe the original seller would consider taking the diamond on consignement or another seller would. Once in a blue moon there are such stones posted by Pricescope sellers, so aparently this is done. There are no private sales on Pricescope, but on DiamondTalk this is somehow done. I really do not know how this works there, but you might want to click away, take a look and give it a try.

Hope some of this helps.

 

[pyramid]

Just an idea, this is maybe not your thing but....

did you ever consider trading the ring in for a gents watch for yourself or a clock or other items a jeweller sells.

 

[troisib1]

Thank you all for your advice. It is greatly appreciated.

I think the fact that the stone is an emerald cut makes it difficult to sell outright to a friend. Besides, they all know my ex and the circumstances under which I''m selling the ring, so it may be awkward. They would be willing to go the trade-in route with me, but due to some of the comments on this string, I''m not getting my hopes up.

I think holding on to the ring and treating it as a "down payment" for the next lucky lady is the way to go. The only downside is the cost to insure it as I don''t have 100% confidence in my lockbox at home.

Could anyone answer this insurance question for me? I currently live in an apartment and don''t have renter''s insurance (I know, I know). So I have a separate policy for the ring. Because my parent''s house is my primary residence, could I just have my parent''s list the ring under their policy and let their homeowner''s insurance cover it? That would save me about $100 a year.

 

[belle]

maybe you should think about using a safety deposit box to store the ring.

 

[oldminer]

I''d suggest getting a bank safe deposit box to store the diamond and all you really important documents in. Leaving your birth certificate, your passport, your will and unused jewelry around your house or apartment is just inviting the inevitable trouble that "might" happen. Just think of all the stuff that is now lost down in Louisiana that could have been secured by safer storage.

The annual cost of a box is nominal compared to jewelry insurance and the risk of losing the contents is quite low. That would be better than storing it anywhere else.

 

[JohnQuixote]

Date: 10/10/2005 3:43:13 PM
Author: oldminer
I''d suggest getting a bank safe deposit box to store the diamond and all you really important documents in. Leaving your birth certificate, your passport, your will and unused jewelry around your house or apartment is just inviting the inevitable trouble that ''might'' happen. Just think of all the stuff that is now lost down in Louisiana that could have been secured by safer storage.

The annual cost of a box is nominal compared to jewelry insurance and the risk of losing the contents is quite low. That would be better than storing it anywhere else.

That statement brought it home for me, Dave. I have a fireproof safe, but recent events have caused me to think along those lines as well.

 

[Tacori E-ring]

Date: 10/10/2005 3:08:56 PM
Author: belle
maybe you should think about using a safety deposit box to store the ring.

It''s a tax write-off too