Trade-in value: how'd you do?

I got 14,000 for a 2007 Prius package 2 with 45K miles towards a 2009 touring package #6 for 26,400. Also got good finance rates to boot.

 

I went in yesterday and going through the system for about an hour, I was offered $14,000 for my 2007 Black Pkg 5 with NAV., It had 18426 miles and no dents or dings. This was for a 2010 IV with NAV and mats at $28,605.

I told the kid (salesman) to give me my keys they were wasting both of our time. He kept talking and I asked for my keys again, he kept trying to ask me what I didn't like about their offer, once more I asked for my keys and asked him if he knew that with holding my keys was not smart and I was going to have to call the police. Magically the sales manager showed up with my keys.

To make a long story short, we went back and forth about the low ball offer on my trade. He ask me what I wanted, I told him all I really wanted was a FAIR offer for my 2007.

Within a few minutes he had added $3,105 for a total of $17,105 for the trade in. I gave them a $500 deposit and will keep driving my car until the 2010 gets to port next tuesday.

The sales manager was mumbling about how everyone knew more about the auto business than they did. I guess it would just be to much to ask, that they give an honest offer, but they always seem to have to try and low ball it. I guess it pays off for them, but I would hate to be in a business that everyone considered so sleezy.

I know there are honest car dealers, but you really have to look hard to find them.

Sorry that this is so long but I would just like to see people stand up for what is right. I also talked to a dealer in Memphis that had just taken in a 2007 pkg 6 for $16,500. (NAV & leather). You know that was not even close to a fair offer, I guess it could have had 150,000 miles on it.

 

Wow! Both of those numbers are completely and utterly insane!

 

That is exactly why after a trade in I never even go by the same dealership for a while. I don't want to know how badly I got took.
and your gonna get took!

 

I have a couple of financial rules when it comes to buying a car. I have always felt that if I can't pay cash for my cars I have not earned the right to have a new car. So for me, its cash or nothing. My second rule is that I will not trade in a present car to buy another car. Just won't do it. Never have and never will because if violates my rule number one. When I do sell a car, I do the selling. I use Mobile 1 from day 1 and take very good care of my cars. For one, they are always hand washed by me. I only use the best waxes and they get a fresh coat of wax every six months whether they like it or not. I keep detailed records in a file folder and the first person to come and see my car buys it. That has always been the case. The biggest problem with selling cars is that they try to sell them dirty. We looked at a 2008 Prius advertised in the paper and it was the dirtiest car I have ever sat in. It was totally filthy inside and out.

The only way to justify a new car is if you plan on keeping it for a very long time. Your cost per mile driven goes down with each passing year. It makes no economical sense to sell a 48-mile per gallon Prius to buy a 50 miles per gallon Prius. That is just crazy. I would not be buying a new car but we have the money and the wife said, "You have earned the right to have it so just buy it." Jay Leno had the same problem buying a million dollar sports car. His wife said the same thing. "You have earned the right to have it so just buy it." That same rare sports car was in an auction a year later and sold for 2 million dollars.

I had a friend that only bought Honda's and Toyota's. He required 100,000 miles on the car before he would buy it. He would run them out to 400,000 and then sell them for about what he paid.

We love our new Prius. Personally, I think it is underpriced by about $5,000.

Dan Clemons, Certified Financial Planner and Registered Investment Advisor - Retired

 

I used my trade-in as my negotiating tool. I found a local dealer with the exact model I was looking to buy. I spoke to the salesman over the phone. He let me know that they would be selling the new Prius at MSRP. I said fine, but I have a trade-in, so we can see how you do on that. My trade-in had recently been appraised at two other dealers, so I had a good idea of its value to a dealer.

Before I left for the dealer, I checked out the KBB trade-in value. Unfortunately, the price had dropped since I had the other dealers appraise it a few weeks ago. I still came up with a buy/sell price upon with I would pull the trigger.

The dealer appraises my car, and the salesman hands me a price that is $3,500 lower than I was looking to get. I figure we aren't even in the same ballpark, so it is time for me to leave. I tell the salesman as much, but he tells me I should still tell him the price I was looking to get. I do, and he leaves and comes back a little later with a $3,000 price increase. I tell him to add another $200. He leaves, comes back again to let me know we have a deal. So, I am now the happy owner of a Blue Ribbon Pruis III with the Nav.

So, to answer the thread question, I did very well with my trade-in value. I ended up getting $1,400 over KBB and left with my new Prius as a satisfied consumer.

 

The problem with Edmunds and kbb.com is that they are just advisory services. They have no risks if they're wrong. If they miss the value as being too high or too low then .... meh, so what. The actual stores have all the risks. They must actually put out their money and pay you. If they miss the value or underestimate the cost to bring it back to market then that's hundreds if not thousands of dollars lost.

Using Edmunds as the final arbiter is dangerous only because if the dealer doesn't want your vehicle in trade then it doesn't matter what Edmunds says. 'If Edmunds says $8900 then sell it to them'.

The best route to take is to go by several independent reputable stores and ask them what price they'd buy it from you outright. In our area the best 'sounding board' is CarMax. They're very quick, professional and fair. I've literally sent at least 100 customers there to get a 2nd opinion on the trade value.

 

I'm not in the market for a 2010 because I'm going to drive my 2005 until it hits 250,000 miles in about 3 yrs. However since I'm in the business I look up the values every so often.

Last December my 2005 Pkg 2 with 90000 miles was listed at ~$11000 on kbb.com
This month, with 115,000 miles it's listed at $7500 on kbb.com

A large part of the loss in value is the overall auto market sucks. It has nothing to do with the vehicle per se. EVERY vehicle on the road has lost tons of value simply because no one is buying now. Hopefull this is beginning to change.

 

In all honesty what the dealer 'asks' and what he 'gets' are two very different issues. There's no reason not to ask for the world whether it's the dealer or you yourself who's selling.

The market will determine the value in the end. If you ask for $21995 for 4-8 weeks and get no bites...hmmmm. If you drop it to $18995 'special' and get a nibble or two and one serious offer of $16000 out-the-door then that's worth considering.

 

I found a 1000 dollar difference between two toyota dealors for my Cadillac that I traded today for a 2010 V. The extra 1000 plus less sales tax sure helps to sweeten the trade.

 

I'm going to look at a 2010 package II on thursday, which the dealer has told me he will sell to me at MSRP (waiving the $2000 "market adjustment" on the window). I'm sure that since they are being so "kind" as to waive the market adjustment, they will try to bend me over and forego any lubrication when it comes to the trade.

In preperation, I researched the trade-in value for my '05 package II with 66,000 miles at KBB, NADA and Edmunds. NADA came in at $11,550, Edmunds came in at $11,075 and KBB came in at $10,525 (all for average condition). When I average all three of those estimates, I get $11,050.

When the dealer comes at me with their obligatory low-ball offer, I will counter with my printed research and desired figure of $11,050. If they get anywhere above $10,000, it's a deal. If not, I walk. It's good to have a game plan with dealerships.

Before going into a dealership, you have to prepare for all the ways they might screw you. Have a firm price in mind for the car you want to buy. Have a firm price in mind for your trade. Refuse any unwanted add-ons or options (gap insurance, extended warranty, etc.) Have a firm stance on interest rates for financing, and remember that you can walk out at any time before the deal is in stone.

Lastly, focus on one thing at a time. First negotiate price, then negotiate trade, then negotiate financing. The dealer will try to make you negotiate all at once, which can confuse you and cost you money. Take your time reading every syllable and QUESTION EVERYTHING that you are uncomfortable with.

If you do end up having to pass on a vehicle, it's not the end of the world. Remember that the salesman invested as much time in the sale as you did, and he lost more than you by you leaving. Plus, there's always another dealership next week.