Book Value For Trade-ins
01-21-2009, 06:32 AM
#1
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Book Value For Trade-ins
I have a question for anyone who works at a Jeep or any other dealership. Why the huge difference between book value and what a dealership will actually offer you for your trade-in?
I have been trying to buy a new Jeep for several months now and I need to trade in my 2006 Nissan Frontier. I looked up the trade-in value on Edmunds.com, NADA and Kelly Blue Book. The values ranged from about $12,000 to $13,000. When I went to the Jeep Dealership I was offered $8,000 for it!
The apprasier couldn't really explain to my satisfaction the reason for the huge difference. Mileage & condition were all taken into account in the book values I got online.
What's the deal? I want a new Jeep but I am not giving my truck away and rolling several thousands of dollars in negative equity into the new Jeep (like they suggested).
Mike
I have been trying to buy a new Jeep for several months now and I need to trade in my 2006 Nissan Frontier. I looked up the trade-in value on Edmunds.com, NADA and Kelly Blue Book. The values ranged from about $12,000 to $13,000. When I went to the Jeep Dealership I was offered $8,000 for it!
The apprasier couldn't really explain to my satisfaction the reason for the huge difference. Mileage & condition were all taken into account in the book values I got online.
What's the deal? I want a new Jeep but I am not giving my truck away and rolling several thousands of dollars in negative equity into the new Jeep (like they suggested).
Mike
01-21-2009, 07:17 AM
#2
JK Enthusiast
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Mostly because there is a "market value" for your Nissan which is different than trade in value. One of the things that stealerships are doing these days is if the vehicle is not one they are interested in putting on their lot, they market it to an auction site. Dealerships pick up vehicles on the auction site at well below book value in order to make money.
Honestly, these days, not much market in used vehicles when most companies are "giving away" their new ones.
Honestly, these days, not much market in used vehicles when most companies are "giving away" their new ones.
01-21-2009, 10:06 AM
#4
JK Super Freak
If you give them wiggle room they will slither right on in.
My wife's last car was pretty easy. I gave them what I wanted for a trade-in and what I would pay for the car and if they wanted to do the financing what rate they would have to meet.
I sat there until they got it all done. They came back about a dozen times trying various pitches and I would just say no, you have my conditions.
They will not take an actual loss on the entire deal, so going in with numbers that would cause that will never work. So it helps to do some research so you know the edges
My wife's last car was pretty easy. I gave them what I wanted for a trade-in and what I would pay for the car and if they wanted to do the financing what rate they would have to meet.
I sat there until they got it all done. They came back about a dozen times trying various pitches and I would just say no, you have my conditions.
They will not take an actual loss on the entire deal, so going in with numbers that would cause that will never work. So it helps to do some research so you know the edges
01-21-2009, 11:11 AM
#5
JK Newbie
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9 times out of 10 you'll be trading in a car that the dealer doesn't want to keep and sell on their own lot. They'll sell it on to a wholesaler who will more than likely sell it on at book value or slightly below.
For the dealership to then make a profit out of your trade-in, they have to be able to sell it to the wholesaler for more than what the trade-in value was.
That's just my understanding of how it works down here. Mind you, I'm in the service department and not a scummy salesman!
For the dealership to then make a profit out of your trade-in, they have to be able to sell it to the wholesaler for more than what the trade-in value was.
That's just my understanding of how it works down here. Mind you, I'm in the service department and not a scummy salesman!
01-21-2009, 11:15 AM
#6
JK Freak
Dealerships are always going to offer you way less than you can normally get anyways... when i went to get my jeep the dealership only offered me 4k on a 2002 mustang which blue book was at 8k... took it to carmax and they offered me 6500 cash... but ended up selling it outright because i had put a lot of work into it... if you have a carmax i would try them you can prob get a little closer to what blue book says...
01-21-2009, 11:47 AM
#7
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Have you ever traded in to a local dealership and seen your truck listed for 6 grand more han what they gave you? My 04 F150 was that way. Not sure if they got it but it was a nice truck and didn't stay there long. I got what I wanted for a trade in though too so I was happy. They just wouldn't budge on the price on the Rubicon.
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01-21-2009, 02:22 PM
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The dealers play a game to see how low they can get you to accept your trade in. They'll sit there an lie to you about why they are so much lower than book value.
When we traded in my wife's car- the car was in immaculate condition, still under warranty, every option immaginable (it was a GT model), and meticulously maintained. In other words, it was the "perfect" trade in, fully deserving of top book price. Book trade-in value on it was $9k. The dealer offered $4k. That really pissed me off, and set the tone for the rest of our haggling. I told them "Well since you just tried to screw me with that offer, I'm now going to tell you that if you want to sell me this jeep, I will accept no less than $10k for her car!" (hahaha- $1k more than book value). And I was dead serious about it. They spent the next hour making counter offers. I held firm. They finally agreed to pay the $10k for her car
Don't take their crap! Set your price. If they won't match it, there are other dealers. And right now none of them are doing good sales, so they need your sale more than you need them.
When we traded in my wife's car- the car was in immaculate condition, still under warranty, every option immaginable (it was a GT model), and meticulously maintained. In other words, it was the "perfect" trade in, fully deserving of top book price. Book trade-in value on it was $9k. The dealer offered $4k. That really pissed me off, and set the tone for the rest of our haggling. I told them "Well since you just tried to screw me with that offer, I'm now going to tell you that if you want to sell me this jeep, I will accept no less than $10k for her car!" (hahaha- $1k more than book value). And I was dead serious about it. They spent the next hour making counter offers. I held firm. They finally agreed to pay the $10k for her car
Don't take their crap! Set your price. If they won't match it, there are other dealers. And right now none of them are doing good sales, so they need your sale more than you need them.
