Trade -in value

  • Thread starter Thread starter shs
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shs

Why is it that the dealers never come close to the Kelley Blue Book value
when giving me an estimate for the trade-in value of my car? Even though
the car is being replaced by another Volvo, has been serviced at this
dealer, and is in perfect condition, they pull out a number that is more
than $3K less ($9,000 vs. $12,500 on a 'good' condition estimate) from a
little book that they claim represents the price they pay at auction, etc.

My worst experience of this was yesterday when the dealer blasted out an
email touting end of month inventory sale, directed me to the Blue Book site
to get an 'estimate' for the trade, promises to pay top dollar, and then
once you're in the door -- totally different.

Is this a negotiating point, or are the Kelley numbers altogether
irrelevant?
 
shs said:
Why is it that the dealers never come close to the Kelley Blue Book value
when giving me an estimate for the trade-in value of my car?
Click to expand...

They do use the Kelley or Edmunds book value. The problem is that there
are books values for:

1) wholesale (trade-in value)
2) private sale (no implied warranty)
3) dealer sale (writen warranty)

Take a look at www.edmunds.com or www.kelley.com

Within each category the value depends upon the area of country and the
car's condition. The condition is primarily determined by visual
condition and running condition; what a person sees and experiences when
they drive it.

There can be a factor of 3 difference between the wholesale value and
the dealer resale value. You always make out better with a private
sale. If you don't want to do a private sale, the dealer probably
doesn't want to sell your car either. We always sell our used Volvos
privately and they always sell to the first person to look at them for
what we ask. We always ask the book value. I would never trade in a
Volvo.
 
my $ 0.02.....never sell your "nice volvo" to a dealer...
you will come out waaaay ahead sellinf private...it may
delay your transaction a week, or two...but, well worth
the $ saved...now, if the car has "problems"...that's a
different story.....
 
Sometimes a trade to the dealer can be good; In Canada, if you trade in, the
value of the car can be traded off against the GST you'll pay (goods and
services tax) on the new car, and that can save alot of green. An example;
If you get 2k less from the dealer for your car than you would on a private
sale, but you pay less in tax for the new one, it can be a good deal. Plus
you won't have the hassle of listing, showing etc. Definitely worth
crunching the numbers before going to the dealer. Also, don't even mention
to the salesman/woman that you have a trade in until AFTER you've settled on
the price of the new car. If they ask, say no.

RS
 
If you need to trade for whatever reason, I find that the most successful
approach is to offer the dealer a price. I never ask what the dealer will
give me. I determine the fair price for what I am buying. Determine the
price I am willing to accept for my car and offer them a sum in difference.
Let them figure out how to mak it work. The general rule of thumb is that
the dealer needs to have about a $2000.00 profit on the turnaround. They
would like more of course, but they will take that. The Kelly book generally
inflates the value of used cars. The NADA book used by most lenders and
available in most libraries is the most reliable. The little "Black Books"
you see dealers use is a summary of auction prices. Auction cars almost
always require work so they tend to be on the low side. Currently, with the
large number of incentives available on new cars, late model used cars with
over 50,000 miles "fall off the book" meaning they wont bring book value or
close to it at acution. The only dealers who even sell them are the "special
finance" folks.
 
Why is it that the dealers never come close to the Kelley Blue Book value
when giving me an estimate for the trade-in value of my car? Even though
the car is being replaced by another Volvo, has been serviced at this
dealer, and is in perfect condition, they pull out a number that is more
than $3K less ($9,000 vs. $12,500 on a 'good' condition estimate) from a
little book that they claim represents the price they pay at auction, etc.

My worst experience of this was yesterday when the dealer blasted out an
email touting end of month inventory sale, directed me to the Blue Book site
to get an 'estimate' for the trade, promises to pay top dollar, and then
once you're in the door -- totally different.

Is this a negotiating point, or are the Kelley numbers altogether
irrelevant?
Click to expand...
from a 15 year experienced car salesman/manager
Go in an negotiate you price saying you do not have a trade.
Then say you wanna trade in you pristine volvo and say let me see the
book.
We make more off trades than a retail sale.
Dealers work out of the black book to buy and the yellow( nada) to
sell..
Look at the bootom line. If I offer 32k on the new and 12k on your
trade = 20k diff.
My buddy in the next town says 40k on the new and 18k on your trade
=22k diff
Where is the deal and which makes you feel bettet ? old trick
AJ
 
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