Trade-in Value 1212 Responses

Last post: 4 years, 1 month ago | Thread started: Apr 27, 09, 7:24 p.m.

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• iCanHazQBN

  How is this determined?

  Is it just the worth of your car (according to what Kelley Blue Book has to say)?

  Or does the amount of money you've paid into the car make any difference?

  I've paid about $13K into a $23K car so far. But I want to get a new car. What happens to the $8K that I haven't paid off yet?

  Apr 27, 09, 7:24 p.m. – Permalink

• xcreonx

  Trade-in value at a dealer is almost always less than you'd get in a private sale. In a private sale you'd have to pay the remaining balance to the bank in cash to clear the title in order to transfer it ( in most cases), but at the dealership they will try to tack that on to the new cars loan. It is a bit of a raw deal since that's another $8k or more you'll owe on the car on top of it's immediate depreciation when you drive off the lot. You'll probably be upside-down on the loan for it's entire life, which is your call.

  

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  Dog-earApr 27, 09, 7:40 p.m. – Permalink

• iCanHazQBN

  thanks for the info. what am i supposed to do with the car i have now? is there an easier way to get out of it, other than having to pay off the leftover $8K? I guess I could sell it privately and have someone take the payments over, but I doubt anyone would take that offer.

  • you should just ignore the fact you have a loan when figuring out how to sell the car.– ribit

  

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  Dog-earApr 27, 09, 7:52 p.m. – Permalink

• doesnotexist

  ^ I would try to go that route. a dealership will low-ball you so he can make more money. a lot of people actually do buy cars privately and take over their payments, it's a common thing. you'll get more money that way than through a dealership.

  maybe even try ebay.

  • but my payment is pretty high right now. when the buyer takes over payment, he can get his own payment rate, right?– iCanHazQBN1/2

    basically, the new buyer is getting his own loan, correct?– iCanHazQBN2/2

  

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  Dog-earApr 27, 09, 7:59 p.m. – Permalink

• zarkonite

  If you sell the car privately you'll make the most money. Once you sell the car you take the money the buyer gave you and pay-off your car loan and whatever's left is yours.

  However the buyer decides to finance his purchase is none of your business, he can get a loan, sell drugs, etc. doesn't matter since you're collecting the total value you're selling it for and turning around and settling your debts.

  The dealership will offer roughly half of what the resell value is so you'll be getting half of what you would make selling it privately. They need to inspect the car and fix up whatever's wrong cuz they're a dealership and they have to provide a warranty even with used cars.

  • Unless you're talking about a leased vehicule?– zarkonite1/2

    awesome. thanks for that. no, it's not a leased vehicle. just financed.– iCanHazQBN2/2

  

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  Dog-earApr 27, 09, 8:26 p.m. – Permalink

• iCanHazQBN

  So when I list it for sale, I basically just list it for it's worth according to Kelley Blue Book (for example).

  

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  Dog-earApr 27, 09, 9:08 p.m. – Permalink

• zarkonite

  The blue book is just a reference, if you kept your car in better than average conditions you should ask more. They assume a certain level of wear and tear as part of the listed value, try and go online on car listing sites and see how much others are asking for the same kind of car.

  • KBB has different options you can select from as to how good the condition is. but yeah, i'll check other listings - cant hurt.– iCanHazQBN

  

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  Dog-earApr 27, 09, 9:45 p.m. – Permalink

• vaxorcist

  KBB seems rather optimistic, check cars.com and craigslist in your area....

  

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  Dog-earApr 27, 09, 9:55 p.m. – Permalink

• cannonball

  run it into the ground. thats how you'll get the best value out of it

  • +1– monNom1/2

    and then fix it barely and donate it for a tax write off– cannonball2/2

  

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  Dog-earApr 27, 09, 10:05 p.m. – Permalink

• monNom

  you can get whatever somebody is willing to pay for it. KBB might give you a 'fair value' but not a lot of people are car shopping these days. New or used. So the actual attainable price might be significantly lower. Is a new car really worth overpaying for? (ie: by cashing out and taking a loss on your current car)

  

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  Dog-earApr 28, 09, 12:08 a.m. – Permalink

• Wolfboy

  I paid £1500 for a VW Polo around 4 years ago and unless the man at the garage tells me he can fix it for cheap tomorrow it's worth about £80 in scrap metal.

  

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  Dog-earApr 28, 09, 12:38 a.m. – Permalink

• SteveJobs

  i had a friend several years ago who was really into this and this is how i understand it.

  you have n.a.d.a and kelly blue book. nada is usually on the lower end, so dealers show you this price when you go to trade in your car. when they sell you a car, they sometimes show you the value of their car using kbb because it's generally higher.

  

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  Dog-earApr 28, 09, 12:40 a.m. – Permalink

• vaxorcist

  Beware, you may be underwater.... i.e. the car is now worth LESS than is still owed on it... I bought my old used Integra with cash years ago...

  I'd keep it, but i loved my Integra even with waaay over 200,000 miles but it got stolen twice, second time it was trashed beyond repair... would have kept it forever.... but I hate spending $$ on car payments... yes, Integras were in the top 10 list of stolen cars....

  • I loved my '87 integra coup.
    Solid car, would have done over 200K if I didn't smash it.– fooler2

  

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  Dog-earApr 28, 09, 9:26 a.m. – Permalink