Real-World Trade-In Values

sebring95 · April 2011

True but you'll get stuck with paying tax before trading it.

emoney123 · April 2011

lucky for us, we have no sales tax here (MT)

qbrozen · April 2011

well, there ya go, no tax in the OP's state. But, even here in NJ, you'd get that tax back when you traded it anyway since you'd only pay taxes on the difference between the new car and your trade allowance.

sebring95 · April 2011

Good point so long as you're buying new! Going from an Audi to a Toyota...that should be painful (i've had both)

qbrozen · April 2011

Actually, that applies to used cars here, too. At least for now. I think they've been trying to change that law for a while now.

centis · April 2011

Hi All. Looking for some advice/opinions on possible trade-in for the following:

Location: Cincinnati, OH
Year/Make/Model: 2003/Subaru/Forester
Body Style: 4DR
Engine: 5 SPD
Driveline: AWD,
Mileage: 93,000
Color: Burgandy/Tan
Major Options: None
Condition:
Couple of 'grocery cart' dings on some the door panel
Tires - 90% of tread left
Brakes - Functional
Maintenance - Normal schedule
Other: In need of rear shocks.

Thank you.

qbrozen · April 2011

probably about $4500.

I would replace the shocks, put it up on craigslist for $7k, and take the first $6k or better cash offer that comes along.

ateixeira · May 2011

Which model? Does it have heated seats? Leather?

The LL Bean models had self-adjusting rear shocks, and those are painfully expensive to replace, though regular shocks will bolt in to place as an alternative.

qbrozen · May 2011

He said no major options .... so I'm assuming its the base X model.

ateixeira · May 2011

You could get an XS with a manual back then, but I guess he would have mentioned more options...

centis · May 2011

XS w/manual. No leather. No heated seats.

In door tweeters if that makes any difference or helps in any way.

centis · May 2011

Bingo. :-)

qbrozen · May 2011

well, in THAT case, add about $500 to my above numbers.

zyaaaaa · May 2011

I've been poking around for trade values using edmunds, kbb, and black book. It never fails that these are over-stated so I'm trying to temper my expectations before we start shopping. Any ideas on real trade-in value are greatly appreciated.

Location: Jacksonville, FL
Year/Make/Model: 2008 Nissan Xterra SE
Body Style: SUV
Engine: V6
Driveline: 4WD
Mileage: 36000
Color: Black Exterior / Grey Interior
Major Options: Tow Package, Side Airbags, Rubber Mats
Condition: Very clean, female driven (no off-road.. what a shame), tires have about 4k on them, maintained in regular intervals, no wrecks or damage.

jayrider · May 2011

Just read that your xterra is on the hot list for exporters who buy nice suv's at auctions and ship them to Africa and the Middle East. Good luck.

sebring95 · May 2011

See the thread above on my '08 Pathfinder. Was offered quite a bit above book on an invoice deal. Market is a little wonky right now and certain vehicles seem to be bringing strong money.

qbrozen · May 2011

somewhere in the $17k zip code.

stever · May 2011

Did you go looking for a used car and find that prices were so high that it made more sense to buy a new car instead? Or found that your trade-in was worth a lot more than you expected?

If so, a reporter wants to interview you. Please email pr@edmunds.com no later than 3pm Eastern on Thursday, May 5, 2011 and include your daytime contact information.

zyaaaaa · May 2011

Thanks! How confident are you with that figure? Any idea what I might be able to get if I go private party? Trying to get closer to the payoff.

Also, am I better off canceling the extended warranty for a refund or selling with the car?

corvette · May 2011

Probably take a refund on the extended warranty. How much would you get back? It's probably worth only a couple hundred dollars to private party.

zyaaaaa · May 2011

I'd have to call and find out. The manufacturers warranty just expired so I'd imagine pretty close to the full amount... 1400ish.

explorerx4 · May 2011

depending on which kind, it may run concurrently with eh oem warranty, so if it was covered for 6 years, after the first 3, you would get about half back.

qbrozen · May 2011

How confident are you with that figure?

I'm confident that's what Galves says. $16,500-$17,500.

Any idea what I might be able to get if I go private party?

Well, at that trade value, most dealers are probably asking anwhere from $20k-$22k for a comparable vehicle.

So let's say you ask $19,995 and take $19k. But you do have that warranty. If you take that as a separate issue altogether, I would offer it up to the buyer for the same amount you'd get as a refund. Maybe even $50 less or so just to save you the trouble. If they don't want it, then you get the refund. No sweat off your back. I wouldn't package it in the initial asking price of the car, though. It just muddies things and makes yours appear on the surface to be more expensive than others.

NOW... what are the tax laws in your state? Here in NJ, if a dealer were to give me $17k for that vehicle, it would effectively be more like $18,200 thanks to the tax break I'd get. I'd have to think long and hard if it is worth my time and effort selling it myself.

zyaaaaa · May 2011

Thanks again! I may end up holding off another year to get closer to the payoff. I hate making that big payment every month, but you make your bed, you lay in it. I may still cancel the warranty to help reduce the balance... but I gotta convince the wife since its her ride.

Just curious, what kind of state tax benefit is that? I'm in FL but don't recall any similar benefits here.

qbrozen · May 2011

It is simply that, here, you only pay sales tax on the difference between the new car and your trade. So if you trade a $17k car on a $17k car, you pay zero tax.

jayrider · May 2011

And people say taxes are unfair. Heck, half the country pays nothing.

igozoomzoom · May 2011

"Just curious, what kind of state tax benefit is that? I'm in FL but don't recall any similar benefits here."

Florida also reduces the taxable with a trade-in credit. If you buy a car for $21k and they give you $10k for your trade-in, you only pay sales tax on the $11k difference. Florida has a state sales tax rate of 6%, so 11,000 x .06 = $660 in state sales tax due.

zyaaaaa · May 2011

I'm sooooo ready to trade this thing in and get a lower payment! I still owe quite a bit but I'm trying to come up with a timeframe for when I might be able to break even. Can someone please give me an approx trade-in value for the 2008 and the 2007 (figure this might help me determine the estimated trade in a year since I never drive it anymore and the model years were similar). Thanks!

Also, I did some checks on BlackBook, TMV, KBB etc and the trade values were around 14K. But when I looked at current sales at local dealers and Autotrader, these are running around 25K asking price. The base model Z went up about 3K recently so that may be why but I wonder why trades are still so low.

Location: Jacksonville, FL 32226
Year/Make/Model: 2008 Nissan 350Z Enthusiast
Body Style: 2Dr
Engine: 3.5 V6, 6MT
Driveline: RWD
Mileage: 45000
Color: Black/Black
Major Options: Side Airbags

Condition: This car is clean inside and out. I'm having the bumper and hood touched up professionally for any road chips. I used to drive to Charlotte and Orlando weekly, thus the mileage. Now I work from home!

Other: No damage except some minor wheel scuffs, no insurance claims, drives as good as the day I bought it.

qbrozen · May 2011

black/black in Florida could be tough. Figure about $14,500-$15k.

An '07 with the same miles is about a grand less.

zyaaaaa · May 2011

Thanks. Any idea why retail is so much higher for similar vehicles? It sounds like I may be better off going with a private sale in a year.

qbrozen · May 2011

Well, I don't know what you are seeing, but average asking prices are usually about $4k over average trade-in values. So you should be seeing asking prices about $18k-$20k, with, of course, some extreme outliers.

Taking prices are much different, obviously. A dealer would be happy at $18k and reluctant, but probably a seller, at $17,500.

Private party if going to be anywhere under that. So figure $17k, best case. As discussed regarding taxes above, if you got $15k on a trade, you'd be more like $15,900 effectively (6% in FL, is that right??). So you might stand to make an extra grand. Have to decide for yourself if that's worth having an endless stream of teenagers who really can't afford it bothering you for test drives.

zyaaaaa · May 2011

Haha - true. I'm planning to lease the next car so I don't know that the sales tax benefit will help that much, will it? The rate in this county is about 7% I believe.

The values I'm looking at are in auto trader for private sellers and dealerships and some drive-by window shopping. The lowest price I've found is 21K retail for same model year.

The closest match was a same color 2007 model year, base (not enthusiast package) with 38k mileage and an extended warranty (5/60) and its listed at 22.6K.

qbrozen · May 2011

sound like some crazy asking prices.

I don't know about taxes vs lease in FL. It is something you'd have to look into. Here in NJ, they tax the lease payment, so I don't think it would work. But some states tax the entire depreciation up front, while some others even tax the entire vehicle up front.

fezo · May 2011

Speaking of Florida and taxes - do they charge property tax on cars down there?

In a couple of years I think I may be moving to someplace warmer and cheaper and certain places in Florida would be in the mix.

zyaaaaa · May 2011

Yeah I dont know what gives with the pricing.. maybe I'll be able to benefit from it eventually. Could it be because sports cars tend to be pretty popular down here and can be driven year round?

Florida includes the lease tax in the monthly payment from what I've found.

Thanks for all of the info!

zyaaaaa · May 2011

Down here you have your sales tax when you buy and your annual vehicle registration fee and that's it. The real benefit to living in Florida is the lack of state income tax.

jayrider · May 2011

Go to ebay and check out the 07-08 Z's. Look mainly at the completed listings. Point of reference. You need to find someone that really wants your car and can finance the note. May take some time but it will sell.

dillydill · May 2011

Hello there,

I am looking at a private party purchase and was wondering what is a fair price.

Location: Central Massachusetts
Year/Make/Model: 2007 Toyota Sienna LE
Engine: 3.5 6 cyl FWD
Mileage: 50000
Color: Gray/ Gray cloth
The online listing says Automatic Transmission, ABS, Alloy Wheels, Power seat, Cruise Control, Parking/Backup Sensor
Power Sliding Doors, DVD System with remote and two wireless headsets.
6 CD MP3/CD AM/FM Stereo System, Premium JBL 12 Speaker system. Privacy Glass, Roof Rack, 7 Passenger seating.

New Brakes,New Tires, Fully Maintained and Serviced. Moving Must sell.

I contacted private seller and he gave me a link to carfax and said he is second owner.

http://www.carfax.com/cfm/FSBO.cfm?report=5820ABA22973721618D5193565CD3CDC

What do you think?
Not in any rush to buy anything but my Taliban 99 Sienna is starting to need things and getting up there in miles

mikefm58 · May 2011

A few more points add in regards to Florida:

Sales tax - I'm in Orange county so I'd pay 6% of the net purchase price, plus $25. The actual sales tax rate in my county is 6.5%, which includes the state and county sales tax rates. But the last time they raised state sales tax by .5% they exempted car purchases from that .5% but just added the $25. In Seminole county, they are .5% higher than Orange, so they would pay 6.5% plus $25 on a vehicle purchase.

Federal tax implications - Since Florida has no income tax, you can deduct sales tax on your federal return, and sales tax on big ticket items like a vehicle purchase are added on top of the sales tax tables.

Dealer fee - Florida is the home of the $699 dealer fee, so know that going in to the negotiations. Most dealers when you laugh at them about that will up your trade in amount or deduct it from the purchase price. But it will be reflected on the invoice.

qbrozen · May 2011

If it is perfect, fair price is going to be right around $17,500-$18k.

dillydill · May 2011

Thanks.

He is asking 15 and says he is probably isn't going to move on the price much.
I thought the price seemed fair.
I will have to get it checked out and make sure nothing is wrong.

Thanks again.

qbrozen · May 2011

ummm... yeah... something must be wrong. He could take it to a dealer and get a check for more than $15k right now if it is as good as described. $15,350 is LOW trade-in. Even if it was filthy and needed tires and brakes, a dealer would still pay $15k for it.

Definitely have it checked over carefully. If it checks out, that's a screaming deal.

ateixeira · May 2011

Sounds like an LE model with pkg 5.

I have an LE pkg 3 and love it. Great van. I say go for it. Miles are a little high but it's a solid powertrain. The 2GR is powerful and efficient, and the trans is less troublesome than the 6 speed auto that replaced it.

2nd owner so find out if it was fleet-owned. Some of those were used as shuttle cars for dealers.

Things to look out for: power door operation is the biggie.

qbrozen · May 2011

actually, miles are just about spot on. At 4.5 years old now, the expected average is 54k.

dillydill · May 2011

The local Toyota dealership has a "safety check on used car" for $98.
Does this sound like it should be a sufficient enough check on the car.
Sounds like it takes about an hour.

Thanks again

ateixeira · May 2011

My 07 is around 35k, then again I have a 2nd car...

stickguy · May 2011

better than nothing. You might have to specifically ask them to look for evidence of previous accidents (though they may not be willing to say).

I use a local mechanic for that (he just calls it a pre purchase inspection). About the same price, maybe a little cheaper. But he is looking at the car a little differently.

the dealer offer is fine to check brakes, etc. But remember, the primary purpose is to hand you a list of "desperately needed services" to immediately overpay them to do!

qbrozen · May 2011

i would definitely call and ask if this is the equivalent of a prepurchase inspection. Let them know it is for a car you are considering buying and want to know if it is up to snuff and if it has had any previous accidents.

morton22 · May 2011

I'm trying to get an idea of market value on these two in Los Angeles:

09 Hyundai Sonata GLS
4 cyl, Auto, 30K White, Clean condition

09 Kia Optima LX
4 cyl, Auto, 30k, White, Clean

qbrozen · May 2011

well, LA is a whole different planet for me, but here on the east coast...

$11k-$12k trade on the Sonata. So roundabout $14k-$15k retail.

About a grand less on the Kia.

Real-World Trade-In Values

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