How do dealerships calculate trade-in value?

[ZYouL8R]

As I stated in another thread, I'm looking at buying a new truck. I was planning on selling my Lexus IS350 myself just to not get raped, but I figure I'd let the dealership throw me an offer to see if it's close to something I'd take.

According to KBB, the trade-in value is ~$24k for excellent condition, and NADA says ~$23k. I did a quick search on Auto Trader and they seem to be going for $25k-29k in the same year and mileage range (private and retail).

So my question is, how exactly do dealerships calculate it?

Before any smart ass comments, yes I realize I'd get a lot more selling it myself, but I'm just curious.

[J&T's 82]

auction data

[helosailor]

They generally go off of Kelly black book and/or average auction price. From my experience, those usually run 25% to 30% below retail. Bottom line, if you can sell it privately, do so. With a trade-in, the raping is certain, the only question is how deep the penetration will be.

[GE]

Fuck trade-in. I just sold my '00 GT for $4,500 on private sale. Carmax was offering $2,500 and the dealer was offering $3,200.

[gearhead78]

Keep in mind the tax savings. Does not mean much on a $3000 turd but a $25,000 car that is $1500.00

[ZYouL8R]

Keep in mind the tax savings. Does not mean much on a $3000 turd but a $25,000 car that is $1500.00

This is one of the reasons I'd consider the trade in, because I'd save ~$1300 in tax on the new truck, so that'd make the raping a little more gentle.

[8mpg]

Keep in mind the tax savings. Does not mean much on a $3000 turd but a $25,000 car that is $1500.00

x2 and there is no freaking hassle of meeting up with worthless people who arent really interested in your car.

[ZYouL8R]

x2 and there is no freaking hassle of meeting up with worthless people who arent really interested in your car.

And this is the biggest reason I'd consider trading it it. Del Rio really isn't a Lexus kind of town if you know what I mean, so I can only imagine the low ball offers I'd get if I put it up for sale. The time wasted on tire kickers and low ballers is worth a couple thousand to me.

[ZYouL8R]

Well so far we've been offered $16k and $18k, which they said are wholesale numbers. Both have been small town dealerships and said they don't have a market for luxury cars. Oh well, I guess I'll sell it myself.

[FreightTrain]

And this is the biggest reason I'd consider trading it it. Del Rio really isn't a Lexus kind of town if you know what I mean, so I can only imagine the low ball offers I'd get if I put it up for sale. The time wasted on tire kickers and low ballers is worth a couple thousand to me.

Dude your doing it all wrong. Park that shit one block from the border and walk away.

[onemeangixxer7502]

Dude your doing it all wrong. Park that shit one block from the border and walk away.

why so dirty mike and the gang can turn it into a f-shack?

[LaserSVT]

We always used wholesale book and then deducted for repairs needed. Make sure the car is as clean as it can be.

[jdgregory84]

At least where I used to work, it was black book to the max. I took a fuck-ton of trade in's to the used car department and the black book was there holy bible. They'd drive the vehicle for about 2 minutes, do a walkaround and base the price of blackbook value and what they saw in that little bit of time. My advice, keep the outside dirty, keep the inside clean before putting it in for trade in. It's a great way of hiding scars, but still looking like the car is taken care of.

[347Mike]

Selling my Honda today to Carmax.

[Up0n0ne]

Selling my Honda today to Carmax.

Don't do it! What year & model?