It seems like dealerships are so secretive with how much a vehicle on a trade is actually worth. No, i’m not talking about what they show you on paper but what the value actually is to them. They can show you what you want on paper to make you happy but then they just adjust the selling price accordingly.
One way to look at values is to shop around Carvana, CarMax, Vroom and all the others and see what you get.
Is there any other way to see what your vehicle is actually worth to a dealer?
Based on what i’ve seen the value is generally “wholesale” value. Basically what your car would sell for at auction. I look at KBB trade-in values and the biggest difference is made by adjusting your vehicle condition but in reality…that doesn’t really make much of a difference does it? Seems like the closest number to “wholesale” value is the KBB “fair” trade-in value. Can any dealer or broker chime in here?
I’ve noticed a little difference also when selling to a dealer that sells new vehicles of the same brand of the vehicle you’re trying to sell as well. Is it worth more to them since they can CPO a vehicle? Seems like offers a just a tad higher but then again…it could just be fluff.
I wish the public would have access to the MMR just to see what vehicles sell for. I’d even be willing to pay a membership fee to have access to such info.
Having a trade just adds another layer of complexity where dealers can play with the numbers, move things around, and generally confuse an average car shopper.
This is why we always say to separate the new car purchase and the trade as 2 separate transactions (at least in your research).
If you’ve done your homework you should know exactly what the new car should cost (without a trade) and exactly how much equity you should have in a trade. Do this and it’s easy to see through any smoke and mirrors the dealer may be using.
And in the end it doesn’t really matter whether you want to call it wholesale or “KBB Fair Trade” or anything else, it’s just semantics at that point.
They have been doing this way before the car shortage happened. Dealers can adjust these values to appeal to the consumer. This is why you need to calculate everything first (trade and new car) and send emails to dealers.
Generally, dealers will look at what they sell for at auction and what are the lowest price retail examples for sale and how long they have been listed for. If I know this car has a 10 day supply, I will offer more. If there is a 100 day supply, then I have to sell it for less to move it quickly or risk it at auction. KBB is often high IMO since they know that if they show you more money than other sites, more people visit and then more ad revenue. If you put in a KBB instant cash offer where they put their money where their mouth is, it comes in considerably lower than their values.
I think the best way to value your car other than CarMax, etc is to see what similar cars are being advertised for in a 250 mile radius and look at the cheapest 5 with similar miles, options, and vehicle condition (accident history, etc). Obviously don’t expect retail for a trade, but you can backtrack from there for reconditioning costs, CPO cost, etc.
You can join a dealership co-op program. Members of the co-op are able to share a license for Manheim access. It’s not free, you pay per month and per transaction, but it’s a fraction of the cost of applying for a dealers license yourself.
This is not correct. Wholesale is below auction value. Wholesalers are those who intend to sell your car at auction or at auction value to a dealer, so the offer to you has to be below that for them to make money.
Exactly… If you don’t know what you’re talking about just don’t say anything at all. Auction value is higher than wholesale value.
A lot of dealers buy cars and send them to auction. Why would they pay you the same amount that they’re going to sell the car for?
Also, Carvana, CarMax, Vroom in most (not all cases) are not going to give you full MMR and neither is a dealer. They’re in it to make money just like you work to earn money. That’s like me walking into a grocery store and asking them to sell me everything for the same price that they bought it for. Does that make sense?
