I'm looking into trading-in my wife's vehicle for another. What do dealers use to determine the value of the trade-in? Hopefully someone who works, or have worked for, a dealership can chime in. Heck, anyone who has knowledge/experience will do.

I had a friend who said they use Nada but when he went to trade-in his vehicle they showed him an Edmunds printout which didn't even come close to what Nada's estimated trade-in value to be.

Thanks!

 

They use a "black book," as far as I know, but some will also base what they give you for your trade in against what they might pay for a vehicle similiar to yours at an auction. Nowadays, you likely won't get nowhere near what you deserve at trade in to a dealer. If your trade is paid for, you're probably better off privately selling it and bringing cash money to the dealer for a down payment.

 

on my 04 F-150 xlt 4wd reg cab 8 ft box, 43,000 km, Ford dealer offerd me 18,000 cdn...two years ago, truck was 35,000 in sept 03...truck is in excellant condition, all of fords low $ items like batt and tires of been replaced, dodge and GM dealers are offering low 20,000 but thier trucks are more expensive, I would lower the cost of your new car/truck before disscusing your trade vaule

 

Most dealers will use NADA, at least in Texas anyway. But remember its only a guide. Used car values are in the toilet right now due to family plan and employee pricing and all the other deals from the summer. We are buying trucks like mine, 05 Lariat screw 4X4's, at the auction for 22-23k right now. This truck books for 27k right now and invoiced for 35k six months ago!

 

All dealers go by the black book. You can subscribe if you'd like, I think its blackbook.com I subscribe to it. There are several versions, the 1990-1997 car book (grey), the 1998-current (black) and the SUV book and a classic book and so forth, each obviously at an additional cost.

You will never, ever get what your trade is worth at a dealer. I worked a few years back for Palmetto Ford in Charleston SC and even if you think you are getting what it is worth, thats just added on somewhere in the new one. They may not cut the price as much, or they might not offer you the best finance rate that they know you qualify for. They get a cut off everything, and they make more money in F&I than any other dept.

Also, if they try using a sales method called four square on you, (like + )
They will want to talk about monthly payment and downpayment. You need to tell them you don't give a shiat about those, you want to talk about trade value and vehicle price. They;ll feed you some crap about "oh those will work themselves out if we can get these down" and they don't

 

It is important to know the market value of both the trade in vehicle and the vehicle you are buying. Edmunds.com gives good fair market value for new and used cars. The dealer will "work" from the sticker price, but it is important to know the invoice price and fair market value for the vehicle you are buying, that way you get a better idea what the true deal is. I have had it work both ways. I traded my 98 f-150 and got a really good deal. They gave me way more than trade in value for it, more than they could possibly sell it for, and made the deal look sweet. In reality, they gave me what my truck was worth and made a couple hundred over invoice and some on dealer incentive and financing. We tried to trade my wifes Windstar AKA the blue turd last year and when I looked at the deal we were getting raped for $6,000. Needless to say we still have the blue turd.

 

Thanks all!!!

I appreciate the feedback and advice. I realize with the current incentives/rebates and other specials it's hard to command a premium dollar on a trade-in. At least, I want a bottom barrel fair amount value for my trade-in. I'm willing to take a hit but I just don't want to give it away.