Trade-in valuations

[rickinAZ]

I've been working with several local dealers and my trade valuation is a more critical piece than the purchase price. One dealer has offered me the KBB-derived value, but the others are as much as $4K below that level. The good news is that that the dealer offering the best trade is right in there on discount from invoice.

Anyone else in my situation have any thoughts/comments on how dealer-offered values are tracking to KBB valuation? I'm using the "trade-in" valuation on KBB.

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[JW12]

I've been working with several local dealers and my trade valuation is a more critical piece than the purchase price. One dealer has offered me the KBB-derived value, but the others are as much as $4K below that level.

Anyone else in my situation have any thoughts/comments on how dealer-offered values are tracking to KBB valuation? I'm using the "trade-in" valuation on KBB.
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I've been working with several local dealers and my trade valuation is a more critical piece than the purchase price. One dealer has offered me the KBB-derived value, but the others are as much as $4K below that level. The good news is that that the dealer offering the best trade is right in there on discount from invoice.

Anyone else in my situation have any thoughts/comments on how dealer-offered values are tracking to KBB valuation? I'm using the "trade-in" valuation on KBB.

These days dealers have a lot of information at their disposal for trade valuation. They can instantly see auction sales data and the number of vehicles like yours within a certain radius of their dealership. The more units there are close by the lower the trade value. Do be mindful of the sales price. They can charge you more for the new vehicle and then show you more for your trade or vice versa. It makes it seem like you are getting more for your trade when the out the door price is the same either way.

 

[rickinAZ]

The other new one on me was the dealers who use the KBB Instant Cash Offer to value trades. Those instant cash valuations seem more suited to someone who is in financial trouble and needs to raise cash quickly. And...the offers resulting from them reflect that. My best offer came from a dealer that took time to actually eyeball my Jeep carefully.

 

[JeePM]

Dealers can make a lot of money on trade-ins. I remember When we bought our Jeep Grand Cherokee when they brought us their offer, I looked him straight in the face and told him he had two options, Raise the price of my trade or lower the price of the Jeep.

What I did before making my offer was I searched this particular dealers inventory for what we were trading in. (a 1 or 2 year old Chevy Equinox). They had three on their lots, so I compared year, trim and mileage. Ours was a top trim package and had avg mileage for the year. All of the ones they had on the lot were listed on their lot for $3-4K higher than their trade offer. I told them I was okay with them making a little money off me, but they werent going to make that much off of me.

Thats the only car deal I've walked away from feeling like I won....even though I know inside I'll never actually win in a car deal.

 

[Notorious]

Rick if you have some time on your hands, get a no obligation 7 day quote from Carmax. Go to KBB’s website and fill out the request for a quote and several dealers will reach out to offer you a quote to purchase your vehicle.

Take all offers to the Jeep store you’re buying from and ask them to match. If they say no, go with whoever’s giving you the most amount of money.

 

[rickinAZ]

Rick if you have some time on your hands, get a no obligation 7 day quote from Carmax. Go to KBB’s website and fill out the request for a quote and several dealers will reach out to offer you a quote to purchase your vehicle.

Take all offers to the Jeep store you’re buying from and ask them to match. If they say no, go with whoever’s giving you the most amount of money.

I didn't do Carmax, but I did KBB Instant Cash. The KBB quick cash option was almost $3,500 less than the KBB trade-in value. Which was, in turn, $3,000 less than the KBB private party valuation. The thing that always irks me is that dealers always claim the KBB values are artificially high. IF KBB is as inaccurate as they claim, how have they stayed in business so long? I push the BS button.

 

[VNT]

Dealers usually list the used units about 4K more than they paid for them, or so I am told. Note they have to recondition and pad them for the turkey trades they get. example at my local store they took a Caddy CTS on trade, sold it and engine crapped out, they got stuck pulling apart to replace the timing chain set , cams and a bunch of other crap, easily a 4K repair, so dealers make some and loose some and pad them enough to cover their losses.

How much are they offering on the trade and new unit?? I would think the Wranglers would be doing good right now, there is supposedly uptick in used values at the auctions do to the shortage of new cars.

 

[rickinAZ]

Dealers usually list the used units about 4K more than they paid for them, or so I am told. Note they have to recondition and pad them for the turkey trades they get. example at my local store they took a Caddy CTS on trade, sold it and engine crapped out, they got stuck pulling apart to replace the timing chain set , cams and a bunch of other crap, easily a 4K repair, so dealers make some and loose some and pad them enough to cover their losses.

How much are they offering on the trade and new unit?? I would think the Wranglers would be doing good right now, there is supposedly uptick in used values at the auctions do to the shortage of new cars.

They are offering me the very high $20Ks for a 2016 Hard Rock with low miles (17,000). I really don't enjoy the experience of privately selling - likely okay, but it has its risks.

 

[guarnibl]

I didn't do Carmax, but I did KBB Instant Cash. The KBB quick cash option was almost $3,500 less than the KBB trade-in value. Which was, in turn, $3,000 less than the KBB private party valuation. The thing that always irks me is that dealers always claim the KBB values are artificially high. IF KBB is as inaccurate as they claim, how have they stayed in business so long? I push the BS button.

I think what they mean is that KBB values are usually higher than Manheim. I think that's true from what I've seen. However that's auction value, not trade value. Dealers will nearly always try to give you auction value first (i.e., like you're not buying a vehicle from them, just selling them one) until you pressure them.

 

[VNT]

They are offering me the very high $20Ks for a 2016 Hard Rock with low miles (17,000). I really don't enjoy the experience of privately selling - likely okay, but it has its risks.

Well for 17K I would keep it and have an extra car, hence why I have 10 cars LOL What did the HR cost new, I priced a Sahara back in 2015 and recall it was about 45K at the time. We bought an Overland, reason being I knew the JL was coming out. So wifey got both, Overland for the winter and a 18 Sahara for summer.

Really sucks getting reamed on trade ins.

 

[rickinAZ]

Well for 17K I would keep it and have an extra car, hence why I have 10 cars LOL What did the HR cost new, I priced a Sahara back in 2015 and recall it was about 45K at the time. We bought an Overland, reason being I knew the JL was coming out. So wifey got both, Overland for the winter and a 18 Sahara for summer.

Really sucks getting reamed on trade ins.

Mine had an MSRP of $41,625 including options (auto = $1,350, side airbags = $495, 4.10 gears = $695, freedom top = $595) - I paid 1% under invoice. It came with tons of options as standard equipment. I believe that the Hard Rock was the best equipped JK that was ever offered.

As we have all found out, aftermarket parts are valued at zero in a trade-in. I've still retained nearly 70% resale after five years (not counting what I added). So...killer resale, but I lost my shirt on the lift/wheels/tires/etc

 

[Crimpcap]

In my experience the KBB meant nothing. Whether it was a Harley or car the dealer used the NADA book values. They always seemed lower than KBB.

 

[rickinAZ]

In my experience the KBB meant nothing. Whether it was a Harley or car the dealer used the NADA book values. They always seemed lower than KBB.

A few years ago a dealer told me that to use Edmunds for valuation, choose the condition that is one worse than reality, and that trade number is accurate.

 

[stylett9]

I just went through a trade in process 2 weeks ago on a 2018 Toyota Camry. KBB "trade in value" said anywhere from 18-20k, depending on condition.
Jeep dealer, and a Toyota dealer who would have been able to turn the vehicle around as a CPO, both offered 17k. I took it to car max as a last ditch effort and they offered me 20K.

 

[Pumping4Jane]

They are offering me the very high $20Ks for a 2016 Hard Rock with low miles (17,000). I really don't enjoy the experience of privately selling - likely okay, but it has its risks.

For reference, 2 months ago, I traded my 2015, 42K miles, 2dr, Hard Rock for $22K. Real good condition with no undercarriage bumps or bruises. Told the dealer that, had I the time, I would sell it on my own. After purchase, I suggested of them not to retail the vehicle for less then $26.5-$27K and not to "drop their drawers". Dealer actually emailed me back and told me the vehicle retailed at $26.5K.

I knew a used car salesman that financed his customer an unaltered 3 year old Isuzu Trooper for more than MSRP, when new. Since then, he was given the moniker "bury 'em for life", Isuzu Mike.

Point being, dealers prices are capped on what they can ask for New stock units. Used units have no cap and can sell for whatever dollar the dealer can get.

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