Real-World Trade-In Values

woodyww · November 2010

I had a used 1962 Mercury Meteor in the late '60's. Had an awful 2-speed automatic trans.; that may have been it's biggest failing. No A/C (in FL!), that not fun either, but I believe that was before "factory air". Always needed repairs, & I don't think the miles were that high. Later I had a couple of late-60's Mopar cars, & they were even more unreliable, but did have A/C & 3-speed automatics.

Except for occasional fantasies of going back to 1968 & buying a new GTO, Chevelle SS, Camaro, etc., I'm very happy to live with modern-era cars now, there's no comparison.

ateixeira · November 2010

If I didn't already have my Miata I'd be offering you $36k cash right now.

Price seems low, $16k depreciation in 10k miles?

lrguy44 · November 2010

Auction prices say $36k-$38k

ateixeira · November 2010

Good reference point.

At 10k miles and new like that, a dealer could sell it easily, so I don't think it would ever go to auction. Should be worth more, no?

oldfarmer50 · November 2010

Wow! 20K loss off MSRP in 1 year? Yikes, I'd tell the wife to get use to the seats because she was going to buried in that car 30 years from now.

I'd love to be in the position to be able to even consider such a hit.

Sandman6472 · November 2010

Our '70 Caddy convertible & '72 Lincoln coupe both came with Michelin radials and drove great compared to our earlier Caddy's with bias ply tires. Thank g-d tires have improved so much over the years.

The Sandman :sick: :shades:

Sandman6472 · November 2010

Our '70 Caddy convertible & '72 Lincoln coupe both came with Michelin radials and drove great compared to our earlier Caddy's with bias ply tires. Thank g-d tires have improved so much over the years.

The Sandman :sick: :shades:

lrguy44 · November 2010

That is what dealers are paying for them which gives a good approximation of trade value. To a dealer, the auction price means a lot more when appraising a car than KBB, NADA or Edmonds. I am sure a dealer would market it themselves.

28firefighter · November 2010

You were spot on. $40,750 was the offer on the FX and 200 over invoice (then take off the rebates) on a mustang GT premium with technology, brembo, HID, and rear camera.

Not too bad.

tyland42 · November 2010

I currently have 196,000 miles on my 2005 Mazda 3 i which I plan on trading in for a 2011 Accord SE with internet pricing of $21,500 +TTL, which is close to invoice. Based on TMV I consider my car to be average to rough so I have calculated the following values:

Average trade in: $3840
Average private party: $4960
Rough trade in: $2996
Rough private party: $3979

I also have an aftermarket car starter and almost new uniroyal tiger paw tires (~5,000 miles since installation).

Based on my research, I would like to start my negotiation at average private party of $4960 and go as low as $3500 which is in the middle of average and rough trade in.

Can somebody please provide information regarding a more realistic view of my trade in value and the best way to approach it given the fair price on the new car?

sebring95 · November 2010

There's a problem with high mileage vehicles using book number: most books stop deducting at some point. Edmunds seems to stop around 135k miles (compare values with 135k to one with 196k....they're the same). Forget the trade-in values...you'll never get anywhere close to what you listed above unless they're making more on the new car sale. I'd be surprised if real-money they gave you a dime more than $1,000 for it.

Do you consider your car to be avg-rough by the descriptions or just because of the high miles? A high mileage car in nice shape and not needing anything can bring good money. A vehicle that's truly rough will not.

You can certainly start your asking price where ever you want. You never know who will come along but if you want to move it fast....you'll need to be willing to drop the price quickly. I think you might get $3,500 if it's not truly rough condition.

qbrozen · November 2010

Is it stick or auto? moonroof?

If auto and no moonroof, they are going to be at more like $2k-$2500 on it. They can SHOW you more on paper, but that just means they are getting the money from you elsewhere.

This is no doubt a candidate for private sale. Ask $4k and take $3500.

tyland42 · November 2010

It is "average" based on the TMV description with a decent interior but some light scratches on the hood, a 3" long deep scratch in the passenger door (possibly from a key) and a dent in the edge of the front driver wheel well. I also had the timing belt, water pump, serpentine belt, and belt tensioner replaced this summer, along with an additional serpentine belt after the tensioner. However, a "squeak "still remains when I rev the engine, but the mazda dealer informed me the car would still run without problem : :mad: I wasn't sure if this noise would make the car "rough" or even "damaged", but I know it would probably decrease from average. The car has cost me a lot of money this year, but more importantly a lot of time. Will I still get bites in a private sale with this type of noise, and will the dealer hammer me for such a noise. I'd prefer to trade instead of private sale due to convenience unless I could really expect the private sale to bring at least an additional $1000 for the shape it is in.

I also did not mention options in my first post:
Power Windows
Power Locks
Power mirrors
AC
Auto
No Moonroof
Rear Spoiler
Single CD
Front Airbags

qbrozen · November 2010

Now that you describe it with that detail, I'm thinking a dealer would be at more like $1500 on it. I don't know if you'd have luck selling it like that. It would have to be a mechanic who is willing to put in the time.

lablover2 · November 2010

anyone have any trade info on this?

qbrozen · November 2010

Between $6k-$7k on the East Coast. Probably not much different in Chi-Town.

gouldn · November 2010

I've posted before, but I'm finally done with this car. It's a fine car, but I'm ready for something that is less of a 'driver's car' with a way smoother ride.

2007 X3 CPO, 2 years left
38K miles
No scratches, garage kept
Premium package, no sport package
Steptronic Auto
No scratches/dents/etc
Tires are getting worn. I'd say < 10K left
Nor Cal area.
No issues at all, drives fine.

I'm looking for the trade value.

Thanks guys.

qbrozen · November 2010

California is REALLY out of my jurisdiction.

ateixeira · November 2010

Too stiff even without the sport package - and I agree!

I went to one of those Ultimate Driving Events and sampled a bunch of those.

100chuck · November 2010

I posted my Escape last June and received trade-in value of $13-$15,000 here's the info:
Location Ann Arbor Michigan
FWD 4 cylinder automatic
7000 miles
Cloth interior dark gray
Exterior Black Pearl Slate
Options: Moonroof, Sync, cargo cover, wet box, indash cd player.
The mileage is now 10,500 miles but my local dealer says that the trade in value maybe higher now is that possible?

ateixeira · November 2010

Well, don't argue with him, ask him how much!

qbrozen · November 2010

nope. $12k is about the number.

explorerx4 · December 2010

Depending on what you trading it in on, there may be manufacturer to dealer cash involved, usually referred to as Marketing Support. Check Edmunds and incentives to get an idea if that is the case.

100chuck · December 2010

Well they sold the car that I wanted so the deal fell apart but I'm going to stop in and talk to the use car Manager today.

100chuck · December 2010

So how much would a Dealer come down in Price? I notice the Escapes with similiar
equipment as the one I have and 15,000 to 20,000 more miles were sticker at $17,000+

qbrozen · December 2010

There is no real answer here. $5k markup isn't unheard of by any means. And, really, its more in the $4k range, as they typically have expenses tied to the car beyond just the purchase price. So they may have one there they paid $12k for at the auction, then paid to transport it, clean it up, put new tires on, or what have you, and now they are "in it" for $13k-$13,500. So they would cut it loose for $15,500 to $16k. That's just an example, of course. As buyers, it is our job to feel it out and get a deal we find fair.

100chuck · December 2010

Thanks for the quick reply, I didn't factor in the cost to recondition the cars.

tifighter · December 2010

Hey Q and others-

Can you tell me what auctions in your area/region are getting for:
2008 Honda Pilot 4wd VP
22000 miles
Charcoal grey/grey interior
no scratches dents, etc.
interior very clean, no tears, stains, etc.
fully serviced, tires, brakes etc. good

Thanks for any numbers you could give...

qbrozen · December 2010

hmmm... I know this isn't right, but Galves lists an SE, not a VP, so I'm going to assume that is what they mean.

You are looking at somewhere between $21k-$22k.

qbrozen · December 2010

No problem.

That's really where the grey area exists. We, as buyers, never know what a dealer actually has "in" a car. Personally, I do my best to assess it fairly. For example, I'll start at the number I mentioned above AFTER the out-of-pockets the dealer may have faced. But then I start deducting for things I find wrong. So, like in my example above, I've got a car that the dealer potentially has $13,500 into and I'll give them $2k profit to make it $15,500 ..... oh, but it needs tires and brakes, so I'm looking to pay $15k ... oh, but the rear bumper is all scratched up, so I'm now at $14,500.

Of course, what I find fair and what the dealer finds fair may not always coincide. My most recent experience of shopping for my GTI was the toughest time shopping I've had yet. It seemed that most dealers were putting (or at least claiming they did) way more into their cars than I thought reasonable. If I take their word for it, they were paying high trade-in at auction and then proceeding to put over $2k into reconditioning. So here I'm looking at a car with a trade value of $10k and they won't come down any lower than $14k. But there is no way I will pay for someone else's mistake. I think it was about the 6th one I looked at that I was finally able to make a deal on, and that was only because they took it in on trade, rather than buying at auction, and had to do nothing to it other than detail it.

stickguy · December 2010

frankly, I don't care what they have in it. That should be no more relevant than what I owe on my trade.

Like the pros love to say, it is worth what the market says it is worth. Well, that goes for the units sitting on their lots too.

I know this is conceptually how it is supposed to work, and that dealers still won't sell at a "loss", but it is a dumb way to price cars.

unless of course they want to give me a discount on the one they stole at way below book!

tifighter · December 2010

Thanks Q.

The VP was the base model for 08; the SE was uplevel with a rear entertainment system. I seem to recall that Galves is funny with Honda trims, but its hard enough for me to keep them straight, too...

richar20 · December 2010

A dork on his cell phone (illegal in WA State) hit my car while it was parked in front of my house--my car had about $2,500 damage. Driver front fender, bumper, grill, and headlight replaced--OEM parts (although I had to fight the insurance company to get them).

Car is 2008 Civic Si Sedan, 20,000 miles, Seattle. I purchased it new, and it had no defects before this incident.

What type of hit can I expect to take on trade-in value? I want the insurer to pay up for diminished value.

Any help is appreciated. Thanks!

qbrozen · December 2010

And sometimes they might. I bought the wife's former XC90 at $1400 over low galves. Car was perfect, so really like $400 over what would theoretically be the dealer's cost after all is said and done. Of course, dealer was crying they were taking a bath... yeah right.

I agree, though, that it doesn't matter to me what they have in it, which is why it took me so long to find a GTI. The market is what the market is. Certainly, when I go to trade my car, the dealer isn't going to care what I have in it.

henry_n · December 2010

Houston, TX
2008 Volkswagen Passat 4 door sedan
2.0T (4 cylinder turbo)
Automatic
Silver in color
Excellent condition,one owner, all maintenance records.
4 new Michelin tires
Never wrecked or dinged
54,000 miles
Thinking about trading in for a new one now that it is out of warranty.
Curious what the dealer may give for it.

qbrozen · December 2010

Not much, I'm afraid. $9500-$10k.
The 2.0T seems to be holding up, I'd hang onto it if I were you. No point in subjecting yourself to such a harsh depreciation hit every couple of years. Have you considered a VW extended warranty? Either that or you should start leasing.

igozoomzoom · December 2010

"A dork on his cell phone (illegal in WA State) hit my car while it was parked in front of my house--my car had about $2,500 damage. Driver front fender, bumper, grill, and headlight replaced--OEM parts (although I had to fight the insurance company to get them).

Car is 2008 Civic Si Sedan, 20,000 miles, Seattle. I purchased it new, and it had no defects before this incident.

What type of hit can I expect to take on trade-in value? I want the insurer to pay up for diminished value."

Unfortunately, every dealership varies in how they determine trade-in value on a vehicle with damage history. But they all will deduct some amount for it and, generally, they'll take advantage of the situation and lowball you. Your damage was relatively minor (in terms of repair cost as % of car's value), but it's not so minor that they will overlook it. If your car has been serviced regularly, your trade will be worth more at a Honda dealer than anywhere else. Because you demanded on OEM parts, your car could still be sold as a Honda 'Certified' Pre-Owned vehicle. Their CPO program allows for vehicles with no more than one minor accident (cosmetic damage only) to be 'Certified' as long as OEM parts were used and the repair work is high quality. Just FYI.

So let's talk Diminished Value....

I've spent many, many hours researching the subject over the last six months during my own EPIC battle with a BIG insurance company! It paid off because: a) I won! and b) I've been able to share what I've learned with other folks to keep them from being screwed by the insurance companies!

First of all, what insurance company are you dealing with? If you're not comfortable stating the name, give me a hint. For instance, I'll just say that the company I was up against is most certainly NOT "like a good neighbor!" The two toughest ones are the one I just mentioned and you're NOT "in good hands" with the other one.

The first step is to have the car appraised by a professional who does Diminished Value appraisals. Take a look at the website for the Insurance Consumer Advocate Network (I-Can) at http://www.ican2000.com/index.asp It is by far the most extensive source of information regarding insurance claims, DV, consumer rights, etc. You can also search for an appraiser using the "Local DV Professionals" link from the main page. Or just go here- http://www.collisionconsulting.com/dvdefined.html

Contact the appraiser via email, give full details of the accident, $ of repairs and what body panels/parts were replaced and ask for a 'ballpark' DV estimate. Most will provide this for free and you can decide if it's worth the effort to pursue it further. If so, they will charge a fee for a detailed appraisal that should include documents and examples to support their calculations (auction sales of similar vehicles, etc.). I highly recommend using an appraiser located in your state because they can also advise you on how to deal with specific insurance companies and even serve as a witness in small claims court if it ever goes that far.

The appraisal fee should also include a demand letter to the insurance company based on their findings and ready for you to sign and mail. If not, there are sample demand letters on the I-Can website that I mentioned earlier. BTW, be sure to add the cost of the appraisal to the DV amount for them to reimburse. If the appraisal is $129 and the DV report is $1400, demand to be compensated $1529.

In all honesty, your claim probably will be in the $1200-$1500 range at most (just guessing). The claims adjuster will contact you when he/she receives the demand letter and try to negotiate a lower amount. At that point, it's up to you to decide if you're willing to accept less and, if so, what's the least you'll accept (85%, 75%???). Most people settle at this point and their drama is over. The other option is to stand your ground and insist on the full amount of the appraisal. If they still refuse, file a small claims suit naming the at-fault driver and the insurance company. Most companies will cut a check immediately at this point....

In my case, they waited until two days before our scheduled court date to make one more attempt to settle. Their on-staff attorney and the claims adjuster were both on the conference call. My insurance agent was kind enough to 'witness' the call for my sake. After almost an hour, were were haggling over $10 freakin' dollars- my demand was $3,260 and they were up to $3,250. On principal, I wouldn't give in. I laughed as I was ending the call telling them how much it would cost them to drive 130 miles round trip from their office to the courthouse in my county, not to mention the time out of the office....I told them it was amusing to me that they'd waste hundreds of dollars and still end up paying the $10 AND my court fees....I got a check overnighted to me for $3,260.

roadburner · December 2010

I'll just say that the company I was up against is most certainly NOT "like a good neighbor!"

I used to have to deal with those jokers when I was in private practice. They would try every trick in the book to keep from paying a penny.

richar20 · December 2010

Thank you for the detailed response, it's been very helpful. The other driver has Safeco insurance--think Mariners stadium. I think its a local company under Liberty Mutual.

Anyway, they have been frustrating to deal with. The accident happened the day before our first snowstorm here. A Safeco adjuster looked at the car while it was covered in snow. His "estimate" was $1,200 using imitation parts (not to mention he forgot to include the parts necessary to hold the bumper cover on). I took the car to a shop I know I can trust--which isn't on the insurance preferred list. The shop's estimate came back at $2,400 with OEM parts.

Safeco then took another couple of weeks to approve the supplement between the estimates while paying for a rental car the whole time.

Actually my dad is my own agent, so I always feel like I'm in good hands. You can probably guess which company he is with. He's the one that told me about DV. I talked to a few people who said 10-20% of book value is pretty standard. That would be $1,700-$3,400 based on $17,000 value. I realize that it will be hard to get much out of them. I just expect to be fairly compenstated.

Again, thanks for your advice.

bconway52 · December 2010

Location: Flowery Branch, GA (About an hour north of Atlanta)
Year/Make/Model: 2004 Jeep Grand Cherokee Laredo
Engine: 4.0L I-6
Driveline: 2WD/RWD
Mileage: 89,750
Color: Gray exterior, gray interior
Major Options: Basic Laredo, has mp3 cd player
Condition:
Exterior has hail damage on hood, roof and a few dings on the vertical beam coming down from the roof at the rear of the vehicle. Dings are small, did not damage the paint. Quoted about $1200 to fix it via traditional methods, not sure of a quote from paintless dent repair methods.

Tires - need replacing
Brakes - 50-60%
Maintenance - in good condition. All suggested maintenance has been performed on the vehicle. It runs strong.

Other: No accidents, I have owned the car for 3 years, since 40k miles.

Thanks a lot!

qbrozen · December 2010

From here, it sounds like maybe a $3k-$3500 car. Depends on how generous the dealer is feeling or how much they assess the damage to be.

Fix the damage, replace the tires, and put it up for sale yourself for $7k and take the first $6500 that comes along.

Kirstie_H · December 2010

Not sure I'd recommend leasing for a driver who has already accumulated 54K miles on a 2008!

qbrozen · December 2010

maybe. I did make an assumption he's owned it 3 years, though, which would be an 18k/yr lease.

jmeasell · December 2010

Interested in a 2001 Honda Civic LX with less than 15K miles (that alone has me a bit concerned although the carfax is clean). Dealer is asking around $10K, which is ridiculous for a 10 year old car. He took it on trade so based on Edmunds TMV that would be about $4K. Is that a safe assessment? And if the mileage is accurate, might this present other issues associated with a vehicle that wasn't driven very often? What would be a fair price to offer the dealer? Thanks.

mcrrt · December 2010

Lansing, MI area

2003 Chevrolet Venture LT
AWD
106K miles
3.4l V6/4sp auto
Black with tan leather
Passenger power slider, dual power seats, quad captain's chairs, Homelink, CD/cassette

Typical small dings and scratches of an almost 8 year old car
Rocker panel rust on both sides; only one small hole (so far)
All maintenance up to date
Matching tires with at least 50% tread left
New pads and rotors all around 2 months ago
History of 2 minor rear-end accidents which required replacement of rear bumper and repainting tailgate

Whaddaya think?

Thanks!

steine13 · December 2010

Regarding the 10-year-old low-mile Civic, I wouldn't be so gloomy about having to replace belts and hoses... all that rubber stuff got a lot more durable over the past 20 years or so. How many people never change or check any of this and 15 years, 150,000 miles go by before anything happens.

But it's moot. Somebody is going to think the low miles are pure gold and pay close to what the dealer is asking. It's like finding out a car has accident damage; you never get enough of a discount to make it work.

I'd move on.
Cheers -Mathias

jmeasell · December 2010

Thanks to all for your advice and recommendations. I've set a price to offer the dealer and if we can't come to terms, I'll move on. There's plenty of fish in the sea.

Kirstie_H · December 2010

2003 Infiniti G35 Sedan, RWD
Silver
108K miles
Automatic, Leather, heated front seats, power driver's seat, sunroof - no other special options that I can think of.
Condition: no longer matters as it's totally wrecked...let's say good, but not excellent
Kansas City area

Just trying to figure out what I might reasonably expect as an offer from the insurance co.

rayainsw · December 2010

"it's totally wrecked..."

wow - are you ok???

Kirstie_H · December 2010

Yup. Me & my passenger, plus the guy who hit us, all fine apart from muscle soreness. I would certainly be a spokesperson for the safety features of this car, because it performed exactly as designed. Everything crumpled, fell out, and broke to pieces, about 50 airbags seemed to go off (so much gunpowder in the air, I thought I was at the Alamo for a minute). Car protected the occupants while trashing the car, just like it should have.

http://www.facebook.com/photo.php?pid=7970562&l=d418bf722e&id=524646326
http://www.facebook.com/photo.php?pid=7972982&l=28563eaf26&id=524646326

Those links should be public. Didn't get hit in the back, but the rear bumper appears to have acquired a "fold here" line.

Real-World Trade-In Values

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