Real-World Trade-In Values

debted · January 2002

i have a standing deal with a salesman for $500 over invoice on a new passat wagon (we've spoken several times over last few months). had talked to him about trading in my '97 Cabrio highline (24k miles, great condition, AT) but was going to try to sell it on my own first. now i'm ready to buy the passat due to good financing rates and am ready to trade-in. NOW he tells me that the $10K - $10,500 trade-in amount we had spoken about was "trade-in value" and he can only give me $8500 "actual cash value" since he's selling me the passat at $500 over invoice.

Just when i thought i had this car-buying thing figured out (and when i trusted a salesman) i feel totally confused (and aggravated).

what's the real deal on trading in my car?!

teo · January 2002

Sell it yourself. You'll be glad you did.

geneseedepot · January 2002

Ok, say I'm looking at a F150 XLT supercab, 5.4 v8, FX4 package...stickers around 30.5 and with x-plan discount and $2500 rebate will sell for around 24.5. Seeing as the discount is so steep, what will resale look like if I trade after only 1 year?

im_brentwood · January 2002

If its a 4WD.. And clean.. I'd think it would be about a $9,500 or so vehicle so $12,900/bo in the paper. And grab the cash!

Hope this helps!

Bill

im_brentwood · January 2002

Hmm..

$1,250 may be a bit light. But $1,500 is probably all the $$.. I.E. Youre close from the sounds of it... especially with "issues"

Bill

im_brentwood · January 2002

Where ya at and what color combo?

Bill

gsj1 · January 2002

What kind of trade-in should I expect for: 2000 Buick LeSabre Custom, 41k miles, highest option package (dual power seats, rain sensing wipers, CD, dimming compass mirror, steering wheel controls, Homelink), Gran Touring package, traction control. Cloth, no sunroof. Nice except for a few door dings. No paint work, food, or cigarettes. New $120 Michelins. Color is Gold Firemist, location is Milwaukee. Thanks in advance for your help, and I'll brace myself for your answers. Also, does it make any sense to try to sell one of these privately?

fladriver · January 2002

Hi Bill, Terry, and everyone!

This is not a trade exactly...an acquaintance has a lease expiring on a 1999 BMW 328i. The residual is $27,550 but the finance company wrote him that they'd be willing to negotiate a discount if he bought the car. Any idea how low the finance company might go?

The car has premium package, leather seats, sports package, and auto tranny. Color is dark blue. Mileage is about 35000, without accidents. Car is in South Florida.

I'm thinking about buying this car myself (my friend is turning it in when the lease expires). Thanks for your help.

debted · January 2002

the '97 Cabrio is dark green with beige leather interior, black cloth top. it's in extremely good condition -- really all the dealer needs to do is replace the tires and "pretty" it up. i'm in south carolina, so weather is generally great for a convertible.

the dealer came up to $9K but even at that i can't move on it, since now we've decided to buy the passat GLX and $10K is my absolute minimum i can accept.

the car's been listed in the paper for a couple of months with no calls! now it's listed at $12,500 OBO. i've been surprised i haven't been getting any bites on it given the low mileage.

am i deluding myself -- like lots of car owners who love their car

-- into thinking my car is worth more than it really is?

thanks for any advice.

im_brentwood · January 2002

I'd say Terry knows these better, but I gotta think its an $11K car.

Retail? Do a super nice "5-liner" and throw it in the AutoTrader.

"2000 Buick LeSabre Custom, One Owner, Nonsmoker, Champagne Metallic with Beige Interior, all power options available, very clean, no accidents, first to see will buy, must sell. buying new car. $13,950 or best cash offer."

Hope this helps!

Bill

im_brentwood · January 2002

Well,

You're looking at a $23-24Kish car across the block so $27,500 is about what I'd say your friend should get for it retail.

So take it from there

Bill

im_brentwood · January 2002

Hmm..

$10K? I cant see that. I think its truly worth about $8,500 or so.. $9K, to me, is a bit of a stretch... even with the low miles, it'd take a Silver one to pull closer to $9,500... $10K.. I dunno, I just can't see it.

If you can get $9K versus $500 over invoice.. I would take the deal.

Sounds to me like they hit you at an "overallowance" and now they realized they goofed.

I.E. They figure your car for, say, $8,500.. versus Sticker on a Passat. So they can "Show" you $10,500 for your trade.

Heck, wanna buy a 1995 XJ6 for $23,950? I can give you $20K for your trade!

See where I'm going?

Real Money is where I think you're at. So I think youre in good shape.

Bill

sobers · January 2002

93 white Camry LE with Roof, Leather & Keyless with 100,000 miles....! Where would you hit this puppi :-)

debted · January 2002

I appreciate the advice. Guess we'll have to figure out whether it's worth it to us to move on the passat now with the $9K offer on the cabrio. Although I have to say, one of the reasons I'm so miffed at the dealership is that they told me the $10K figure knowing full well about the agreement for the $500 over invoice, and in fact said that's why they couldn't budge over $10K since they were discounting the new car for me. so, you can imagine how I felt when I'm finally ready to close the deal, and then they come back with $8500!

rroyce10 · January 2002

.... What no Honda's ...? ..l..o..l...

I will stake your "reputation" ..It's a nice clean one. Very limited in the scratch and dent dept. Interior looks like a 98 and the "french fry" invasion never came.. it's just a nice vehicle with some miles... New tires, everything works, air blows cold, etc.

Depending on the dealer ... it's a $3,000++ vehicle. This is a great retail piece, Toyota buyers won't flinch if it's nice -- throw it in the paper for $4950 and let someone come out, slap ya in the face with $4,5/$4,7 ...

Terry.

sobers · January 2002

I thought he paid a bit more but still ok. You hit it exactly in your post!! Your are simply great!!! :-)

The similar Accord is available for not less than 5500 ! So I guess this was a good deal for him witrh almost new tires!

im_brentwood · January 2002

I agree. Good car for the Money.

Down here that car would sail right past $3K across the block as well.

Bill

needsans · January 2002

Retail/wholesale values? It has approx 15k miles, with navagation system and rear spoiler. Black.

im_brentwood · January 2002

Here in Florida... I'd say around $24,500 or so wholesale, so put it in the paper for, oh.. $26,900 and see what happens.

Bill

acrafton · January 2002

To the pros:

Are you guys seeing a pickup in the used car market, esp higher prices with the ending of most mfg discounts? If not, do you expect to?

Adam

rroyce10 · January 2002

........ The used car market is not up .... It's waaaay up..!

When I go to the auctions, I see people there, I haven't seen in 5/6 months. What would do "average" book .. is now doing "clean" -- and what before, would do "clean" is now doing "Xtra clean". Of course this all depends on the vehicle, condition, mileage and such.

But on the overall .... it's way,way up.

Terry.

qbrozen · January 2002

I'll be kinda vague on this, but hopefully you guys can help out. Its for my brother-in-law. He's looking for a '98(ish) 40k miles Suburban. Figure 1500, auto, air, CD, and the usual power ammenities, NO 4wd, and no cowskins. Any color will do. In Jersey.
So, what would a dealer have invested in one of these?

thanks.

rroyce10 · January 2002

....... Easy answer. A nice clean, well kept Suburban gets the bucks, whether it has 40k or 140k. They are just great vehicles.

In your case, a 98 "LS" 1500 2WD with 40K -- clean, newish interior, dual air, new tires, looks 2000 ... will do around the $13's+. By the time they get it home with transport, service, clean and a this and that -- they will have the mid $14's in it -- Soooo, I gotta think it's in the paper for $17,900.

Terry.

metmdx · January 2002

Hey guys,

1994 Infiniti g20 - 42k miles (yes only 42k) A/T in cream puff cond.. Maroon ext./Tan int. CD/pwr seats/sunroof/good rubber...."one of a kind" sparkles in the sun....how much if I go private sale and how much in trade?
Thanks,
metmdx

rroyce10 · January 2002

...... Gheeez, I hate these cars (nothing personal) ... But, it was Infiniti's shot at the title. There worth more now, than when they were new ..l.o.l...

With only 42Klicks and based on what you are telling us, it looks new and all "toyed" out.. it would do an easy $5,000 at the block ... and if you retail it (you should..!) throw it in the paper for $7,500 and let someone come out and insult you with 6,5/6,7/$6,900 ..then look real sad, take the cake ..and go buy a real car.

Terry.

steine13 · January 2002

Terry wrote: "....... The used car market is not up .... It's waaaay up..! "

Okay, you're the expert and I'll take your word for it. But why is that? After all these strong new-car years, and esp. with the recent zero-percent finaning and strong incentives, why isn't the used market depressed? There is a huge glut of used vehicles, isn't there?

I've watched the used market for a long time, and continue to be baffled by some aspects of it. The strangest thing to me is the $4-7k portion of the market... I've always paid cash for my cars, and I don't like to pay collision/comprehensive on more than one car at a time, so that's a comfortable price range for me. But MAN! are the prices strong in that segment. So much so that I will usually think really hard about a new one...

The only way I can make sense of it is that there are plenty of people out there who cannot afford the payments on a new car, so they'll pay $6k for a nine-year-old Accord. At that rate, a new car would be cheaper, but that's what I think is going on...

Does this make sense? Is this how it works?
Help me out here, somebody.
Terry? Bill?

Baffled, I remain
-Mathias
East Lansing, MI

im_brentwood · January 2002

A 2WD Suburban in New Jersey???

Bill

bretfraz · January 2002

Advertise it right and you'll get all the money on that puppy. It's Infiniti answer to the BMW 3 series and lots of people love that little car. Great engine and suspension. Auto tranny was the weak point, unfortunately. I'd flush the fluid prior to sale and let the buyers know you babied it. People who shop that car know it so a little advance maintenance will make things go smoother.

Clean it up real good and sell it to the first kid that comes by. $7000 should be easy, maybe $7500 if you're greedy and wanna hold out for awhile.

rroyce10 · January 2002

...... Good question..!

With all that 0% stuff and all the strong programs that where going on ... there was a deluge of buyers.

When you get to the bottom line of it ...90%+ of those buyers are one kind of buyer. A payment buyer. Only 24.7% of that entire buying frenzy actually could or did, take advantage of it. The vast majority, ended up going with extended term financing (60+ months)..or/and took the incentives instead.

We are all consumers, we all appreciate a "great" deal -- but as usual, we as consumers have a tendency to "lean" towards the $20,000 vehicle instead of the $15,000 that we came in for. It's basic math (kinda) .. add the Xtra $5,000 spent on the new vehicle, trade in the old vehicle, that we kinda forgot about that $9,800 pay-off on that $6,000 vehicle -- and low and behold, that 0% just isn't going to help .. but, that 66 month payment sure feels good and is do-able.

It may sound funny ... but I have seen more cash buyers than I have ever seen in my 18yrs in the biz. You are right, that 4/6/$8,000 market is huge, lot's of Dads buying vehicles for their kids at college, or that second vehicle for Mom that they felt was going to be a $18,000 vehicle 6 months ago.

Also keep in mind .. It's just human nature. A consumer comes in for a new 2002 Toyota Camry LE with the roof, slider, wheels, CD pack, etc, etc, and when it won't fit in the budget.. even with all the "program" money -- they will be more than happy to drive off in that nice, clean loaded up 2000 LE because the payment is $50/60/$70+ less a month --- My friend, that is human nature.

I hope this makes sense ....

Terry.

qbrozen · January 2002

Well, the man is graduating from a minivan to start with, so he knows nothing of 4wd. He wants to save the bucks. And, I kinda agree with him. I have had several 4wd vehicles over the years and the only time I ever used it was for off-roading. The winters just aren't what they used to be when we were kids, so 4wd is really not worth it anymore. Resale value is a different story. BUT, this is also a person who drives their vehicles for 10 years before sending them to the grave. I'm not gonna bust his chops for NOT wanting 4wd.

ralpi · January 2002

What do you guys think I should be getting for my Mitsu, private sale? I have had it in paper for
$6495, only a couple of lookers. Sticks are hard to sell. I have an extended b/b warranty to 72k, but nobody seems to care (one young kid was more concerned if it had a spoiler than the warranty). So I dropped price way down to $5500, and am not advertising warranty (I will cash it in for $400). Car is like new, I am original owner. Dealer? Offered $4500 in trade in.

rockypup · January 2002

I have a 93 gmc suburban sle. It has 132000 miles on it.It's in good shape. Any ideas what it is worth?

im_brentwood · January 2002

Gotcha. Its cool then I suppose

Bill

abtseller · January 2002

we need more info. Alloys? Leather? body and interior condition, tires? Maint? etc.

Ed

qwalls · January 2002

Bill/Terry,

Hey guys. OK, before you start yelling at me, slapping me, or sending me to my room, I know the miles are high. :-)

I found a '99 LS400 in Michigan. It's black on black, has heated seats, Nakamichi, Cd changer, HIDs, moonroof. It has 60k miles, and the asking price is $28k which is definitely in my price range. I just got an email from the dealer, and they still have it. I'm waiting for a response to my question about it's condition. I'm not really worried about the miles if it's clean, because I'll probably only put 10k/year on it, and I'll probably keep it 8-10 years. What do you think?

Carfax shows that it was a commercial lease vehicle.

Thanks,
Quentin

rroyce10 · January 2002

...... That's about what I have been seeing, except their more in the mid 40K's. (no blacks worth talking about)

Well, you know the drill l.o.l. -- super nice and clean, properly serviced, etc, etc. They are in the $23/$24 figures at the block --- Soooooo, take a look.

I feel that $26ish can put in your driveway ...

Good Luck..!

Terry.

rroyce10 · January 2002

....... Ok ---- Everyone ..! Wake up..!

Do I have to sique "Bill the Bulldog" on ya...?

Miles.. I need miles. Options ... I need options. Condition .... I need conditions. Colors ... I need the colors. Model.... I need the model --- Uhh..Da!

Beer .... I need a Rolling Rock or a Mich ..

Terry.

steine13 · January 2002

--Thanks for your answer re: Used Car Market. That does make sense.
Enough of this nickel-and-diming... I put myself on the list for an '02 Odyssey today after a test drive. Nice.
Oy vey, it costs about as much as our last four vehicles combined... and two of those were new... Time to grow up, I guess...
-Mathias

rockypup · January 2002

The 93 suburban is 2wd. It is an sle with cloth int.,tires 1 year old on alloys,f/r air,body and int. clean,132000 miles burgundy ext. Hope this helps.

im_brentwood · January 2002

Thanks.. that helps!

Without looking at it, but assuming its clean for the age and miles, hasn't been repainted/smashed/dragged out of a lake..etc..

I think we're looking around $5,500 or so "real money" wholesale.

So pop it inthe paper for $7,900/bo

Hope this helps!

Bill

im_brentwood · January 2002

Tough Call... What trim Level? I assume its an ES.. So its got windows, locks, cruise.. say its got Alloy Wheels and is clean.

I am thinking right around the $4,500-5K mark on it.. but more info would help. See if you can push them closer to $5K I think.. The stick does hurt it a bit.

Bill

rroyce10 · January 2002

.... You are quite welcome.

Terry.

dmmattix · January 2002

I am getting out of the MiniVan age and back to a sports sedan. I have a 1999 Montana 4 Door Std Passenger Van with 55K miles. It has Tutone paint (White/Light Sand), leather interior, PS/PB/PW, AM/FM/CD/Tape, Luggage Rack, Alloy Wheels, Captain Chairs(4), Keyless Entry, Leather Steering Wheel, Overhead Console, Power Driver seat, Privacy Glass, and Steering Wheel Radio controls.

Edmunds Use car appraiser suggests $11,597 Trade-in. What's realistic??

thanks

Mike

ralpi · January 2002

Well, I did leave out some important info. The mileage is 43k, it is a DE model (no power). As far as condition, it is really like new. I am the original owner, and there have been no accidents. I have someone interested at $6295, including the B/B warranty. His mechanic will be checking it out tommorow night. Hopefully the deal will be done, picking up my new car Saturday.
Keep the bulldogs away!!!!
Thanks all for the information!

im_brentwood · January 2002

Hmm.. a DE? $4,500 is closer to the real $$ then.. Im thinkinbg closer to $4K.. but I can see 4500.

$6,295? Take it and run!

Good Luck!

Bill

im_brentwood · January 2002

Is it an Extended? If so, $11K is right around the money on it.

If its not.. you're closer to $8,500ish I think..

Bill

sobers · January 2002

Its 91 Accord EX white Auto with 86000 miles (new tires) Clean condition. Please help !! My friend is looking to buy this car today!!

dmmattix · January 2002

Bill,

No, it's a Standard. I was suspecting that but just looking to confirm.

thanks

Mike

abtseller · January 2002

00 Mitsubishi Eclipse GT/ Auto, 24,000 miles, silver with charcoal leather, sunroof, in disc changer, sec. system, spoiler, alloys, power windows, locks, etc. Slam loaded. Supposed to be a garage queen, one-owner, no french fries, etc. I already have a trade figure from the used car manager, but I'm trying to keep him honest.

Ed

rroyce10 · January 2002

..... All the right toys and the right color.. besides the miles are Ok. $12,500 ... and "If" it's a puff, maybe a tinge more.

Terry.

Real-World Trade-In Values

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