Looking to trade in my 2001 Impala. After looking at several sites that give estimates for what to expect I still have no idea. The KellyBlueBook website said that 7000 was the expected price while Edmonds had 10,500, another site had 9000.
I can understand a range of uncertainty but I’m afraid that the dealer will point to the KBB and say that they won’t pay higher than that.
This will be the first car I’ve ever traded in, so I don’t know what to expect.
Also, will I be asked if the car has had any major repairs? If I am, how do I answer. The car had its transmission rebuilt about 8000 miles ago.
You can try www.intellichoice.com for the fair market value, depending on accessories, etc. This site can also tell you how much you should pay for your new car. Also, see Edmunds. Many states have lemon laws, so you should probably disclose any problems the vehicle may have had. On the other hand, the dealer will have his mechanic look at it, and he may be able to tell if it was rebuilt. I don’t think dealers use the bluebook that much nowadays. I think they prefer…dang, can’t remember the name of it…someone will chime it here, I’m sure.
The main thing here is not to talk to the dealer about trade-ins in conjunction with the purchase of a new vehicle. They are two separate issues. Salesmen like nothing better than someone who is naive enough to start discussing the trade-in prior to settling on a price for the new vehicle. If asked about whether or not you are trading, your response should be something along the lines of: “Let’s discuss purchasing the new car.”
I’ll chime in on the used car pricing…they generally prefer to use the “number I pulled out of my ass” approach whereby your car is ALWAYS worth substantially less than the Kelly Blue Book, is ‘difficult’ to sell, and they are always ‘doing you a favor’ by taking it off your hands because it’s not a desirable car/ the market is flooded with them/ they have to fix all kinds of stuff on it, etc.
I’ve never been asked many questions about cars I’ve traded in. Usually the dealer will want to take it for a test drive and may have the shop take a quick look at it. If they do ask questions, don’t lie. They will probably be able to tell that the transmission was rebuilt anyway if they take a good look at it.
The dealer’s job is to get you to part with as much money as possible. They are going to offer you a fairly low value for your car, and also have some built in money in their sale price for the new one. Negotiating with car dealers is a fine art, but I’ve had the most success in getting the sale price down first, then working up the value of the trade in (YMMV, of course). Come in armed with printouts of what your car is worth, maybe only with edmonds and the other site since those were significantly higher than kelly. If they offer you 7,000 then pull out the edmonds and say “but it’s worth this and here’s the proof.”
The used car department where I worked used the “Black Book” for a starting point at determing trade-in value and would deduct for problems apparent during the appraisal.
The “Black Book” is a weekly publication not generally available to the public which averages selling prices of vehicles sold at local dealer auctions within a classification system. Theoretically, if a dealer classifies a car properly, finds no substantial problems with the car after the appraisal and pays “Black Book” value for the car, he shouldn’t lose a ton of money if he cannot retail the car himself and winds up selling the vehicle at auction reasonably quickly after he buys the car from the consumer.
I am uncertain how all the others obtain their data, but KBB, Edmonds, Consumer Reports et. al almost always seemed higher than Black Book. Sometimes a lot higher. I am convinced that some consumers were referring to “Average Retail” rather then “Average Wholesale” or “Trade-in Value” because their estimates were so high.
It’s a good idea to keep in mind that a dealer is under no obligation whatsoever to offer even Black Book for a trade-in. It is in the used car manager’s best short-term interest to offer as low as possible that will get you to part with your car, if the dealer even wants your car at all. If the call is very much out of line, oftentimes the new car manager will step in and try to get more money for the trade if he feels he will lose the new car deal.
Another factor to consider is that one’s trade-in is not equally valuable to all new car dealers in the same market. Few used Audi customers will shop at the used car department of a Chevy store, for example. For no apparent reason, the used car lot where I used to work had a devil of a time selling used Saturns, so the used car manager was very reluctant to put jumbo money into a Saturn trade-in and the new car saleperson was just out of luck if his customer had a Saturn trade-in and wanted top dollar for his trade.
I’ve sold cars, off and on, in California for over 12 years. Most people will want more for their trade than it’s worth.
Here’s what happens when you trade in a car here:
The dealer will usually start with the Kelly Blue Book wholesale price. This is just a starting position. He will deduct any work that must be done to make the car “frontline ready”. This will include mechanical repair if necessary and cosmetic repair. Even if the car is in perfect condition they will deduct a minimum of $300 to do a “Smog and Safety Check” and $100 to detail the car. This will be necessary for them to resell it. When the car is “frontline ready” they never want to have more than “Wholesale Bluebook” invested in it.
Then we come to it’s “actual value” compared to KBB value. Some cars are “weak” in the marketplace. They aren’t worth KBB wholesale price. Almost no car is “strong”, worth more than KBB wholesale. The dealer decides this by checking the internet or printouts he has access to, of what that type of car is going for at “Wholesale Auctions”. If he isn’t a Chevy dealer, he may call a couple to see what the market is for your car. They may also ask the Chevy dealer if they wold be a “Player For It”, would the Chevy dealer want to buy it from the dealer your trading it in to.
If a trade-in is an older car, not your 2001 Impala, they may not want to keep it at all and will call a “Wholesaler” to see what they can sell it or. They will now arrive at an Actual Cash Value for your trade. This is what the dealer really thinks the car is worth.
Now we come to NEGOTIATION:
The dealer may not tell you their real ACV for the trade. They may try to “Steal The Trade”, offer you less than it’s worth. They will probably want more for their car than they will really take for it.
Do your homework. Start off telling them you want KBB Wholesale for your car (remembering what I said above, you won’t get it:) )and what you feel is the best price available (Edmonds.com TMV? or Carsdirect.com?) for their car. Use a difference figure here and do your negotiating using just the difference figure. Don’t let them confuse you by throwing new car price and trade-in price around. Start with your ideal difference figure and stick with a difference figure only. Be prepared to haggle. If you feel it’s reasonable, raise your price a little at a time. This will keep them interested in “working you”. If you don’t think they are being fair, leave on a friendly basis. They probably won’t let you leave the dealership until you get their best deal.
I don’t usually reccomend leaving the trade out of the deal and then tossing it in later. You have to negotiate twice and things can get confusing; also it’s hard to get the dealer to do this. Your best negotiating tactic is to put your full offer on the table and let the dealer know your ready to go “if the price is right”. IMHO: Stick with the difference figure.
GOODLUCK!
For Lorenzo: Come on, nobody wants a used Saturn. Every lot has 2-3 they can’t get rid of.
The dealer decides this by checking the internet or printouts he has access to, of what that type of car is going for at “Wholesale Auctions”. If he isn’t a Chevy dealer, he may call a couple to see what the market is for your car. They may also ask the Chevy dealer if they wold be a “Player For It”, would the Chevy dealer want to buy it from the dealer your trading it in to.