Dealerships Low Balling Trade in Value

[Docwagon1776]

Nothing more expensive than a cheap German car...

 

[Dean2]

Nothing more expensive than a cheap German car...

Spot on. Quit buying Mercedes and the like years ago because repair costs were WAY past stupid expensive, and the dealerships treat customers like crap, and there is usually only one, even in fairly large cities. Even worse than Stellantis, with the exception of a few really good dealers that take a lot of looking to find.

Switched to buying used upper end Lexus cars in 2009; GREAT customer service, excellent repair shops, and while they too depreciate rapidly, not near as bad as Audi, Mercedes or BMW. They also require nothing more than oil and tires for 350,000 miles, unlike the German cars where the repairs are never ending. I would not own a German car that was outside of its warranty period.

 

[nlambert182]

I know folks complain about Stellantis/FCA/etc... but the reason I don't is because of experiences with Audi, Ford, and Toyota as companies. My experiences with those companies made me swear off their entire brands.

If anyone thinks for one minute that any of those companies will treat you better I can assure you that it's a pipe dream. The entire reason that I own a Ram (or have owned Durangos, Chargers, Jeeps, etc..) is because they've been the most reliable and aside from my local dealership have been extremely easy to work with.

I would

 

[demonram]

I have visited 3 different dealerships in my area and they are low balling on the value of my truck. 2016 1500 Lonestar with 30620 miles. Can you guys chime in on what you think a fair trade in value is for my truck. The most they are offering is $15000, I simply just walk away and go home. It's not a new truck but with very low miles considering the year of the truck.

That's less than 4000 miles a year, average. That's still like new nearly. What about the exterior and interior, are they in excellent condition? I say that is a very low offer for that truck. Have you looked it up on KBB, Carvana, anywhere like that to see what the value is? I would try that to se what they value it at.

 

[steveTS]

I have visited 3 different dealerships in my area and they are low balling on the value of my truck. 2016 1500 Lonestar with 30620 miles. Can you guys chime in on what you think a fair trade in value is for my truck. The most they are offering is $15000, I simply just walk away and go home. It's not a new truck but with very low miles considering the year of the truck.

I'd look on NADA.com for values as banks use these numbers not KBB! KBB is bs drivel for dealers to screw consumers.

 

[steveTS]

I have visited 3 different dealerships in my area and they are low balling on the value of my truck. 2016 1500 Lonestar with 30620 miles. Can you guys chime in on what you think a fair trade in value is for my truck. The most they are offering is $15000, I simply just walk away and go home. It's not a new truck but with very low miles considering the year of the truck.

Go To nada.com for real values KBB is BS dealership numbers to screw you!

 

[DeanM]

I have visited 3 different dealerships in my area and they are low balling on the value of my truck. 2016 1500 Lonestar with 30620 miles. Can you guys chime in on what you think a fair trade in value is for my truck. The most they are offering is $15000, I simply just walk away and go home. It's not a new truck but with very low miles considering the year of the truck.

I used to work at a Dodge dealership and I am sure a few peeps here have as well possibly but that is very low mileage for a 2016 considering my 2016 Sport has now 215k kilometers which is roughly 133000 miles lol...Dealerships always always always low ball your vehicle and it is never a good idea to use a vehicle for a trade in. Best to sell it privately and you will get close to what its worth...with that low of mileage you should be able to command a good price for the people that know the value of what you have. The others that critisize dont know crap.

 

[Guitar Guy]

My recent new Ram 1500 purchase was the worst experience ever, and I have bought 5 of these. I was very happy the first four timese. The Ram dealers now collude with each other so that if you negotiate with one, they will contact all the other dealers in the area to prevent you from comparing prices. Every dealer will offer the exact same deal, to the penny. No coincidence! Price fixing is illegal but they have a good product and know they can stick together and maximize profit for everybody. Others are correct - you are forced to sell your vehicle yourself.

 

[etennram]

I have visited 3 different dealerships in my area and they are low balling on the value of my truck. 2016 1500 Lonestar with 30620 miles. Can you guys chime in on what you think a fair trade in value is for my truck. The most they are offering is $15000, I simply just walk away and go home. It's not a new truck but with very low miles considering the year of the truck.

Go to carmax or carvana. Got $14000 for 10 yr old 100k mile jeep grand cherokee vs $10k offer from dealer. Went to car max first and got $14k offer for 2014 ram 1500 laramie with 100k miles and showed yo dealer who matched it.

 

[Dusty]

"Dealerships always always always low ball your vehicle and it is never a good idea to use a vehicle for a trade in."

Yep. That's been my experience.

Regards,
Dusty
2019 Ram 1500 Billet Silver Laramie Quad Cab 2WD, 5.7 Hemi, 8HP75, 3.21 axle, 33-gallon fuel tank, 18” wheels. Build Date: 3 June 2018. Now at 116044 miles.

 

[VirtualRAM]

I was told by a Ram salesman

No dealership will take in a vehicle that is 7 years old
The dealership sometimes will take in a vehicle in great shape, when it is older, i assume he was referring to a 5 year old vehicle.

The thing is, if it takes up room on the used vehicle lot for over a month, they are losing money.
Then that vehicle goes to an AUCTION, so they can cut their losses

Dealers around here have lots of vehicles older than 7 years on their lots. Dealers will also take anything in on trade. It's generally the only way to sell something, as it's most people's down payment. Even if it's a $1000 beater.

 

[VirtualRAM]

Just started vehicle shopping. Dealers offered us $2500 for our 17yo vehicle. Sold it on FB MP in 2 days for $5500.

 

[VirtualRAM]

One dealer complained to us that his inventory on new was growing faster than sales, yes Stellantis wouldn't improve their incentives.

Of course, when it came to buying his used vehicles, he also complained he had too many used ones, yet wouldn't lower his prices on those either...Pot, Kettle, etc...

 

[pscarbor]

I have visited 3 different dealerships in my area and they are low balling on the value of my truck. 2016 1500 Lonestar with 30620 miles. Can you guys chime in on what you think a fair trade in value is for my truck. The most they are offering is $15000, I simply just walk away and go home. It's not a new truck but with very low miles considering the year of the truck.

Just curious: Why are you trading in a relatively new truck in good condition with low mileage for a new one? Other than the new car smell does the new truck offer anything of value that your trade-in doesn't have?

I have a 2006 Ram 1500 5.7 hemi with 285k on it, I was considering trading it in but the new trucks don't offer anything of value to me that my old beater doesn't have. Guess I'll hang onto it for another couple hundred thousand.

 

[suicideking]

I've found Carvana to give the best prices on used cars. Sold my wife's Prius about a year ago and selling another on there soon. Higher prices that anything short of a private sale. They just come to you and give you a check, tow it away within a couple days. Check on there and see if it's more than the dealer is offering.

I don't see dealers as 'low balling'. They have standard figures they are going to use according to the market and wholesale/auction pricing. Private sale (auto trader and such) will get you more money, but definitely a hassle with all the tire kickers trying to find a way to annoy you and waste your time.

 

[Jholtzman1]

I just tested the waters with CARMAX and got an offer of $20400 for my 2013 RAM 1500 Limited with 51000 miles. Definitely worth your while to check that path and bring more cash for your down payment to the dealership. Cabana offered $18900 so definitely check around. I previously sold a Jeep Grand Cherokee to CARMAX and found the process easy, quick and worthwhile.

 

[nlambert182]

I've found Carvana to give the best prices on used cars. Sold my wife's Prius about a year ago and selling another on there soon. Higher prices that anything short of a private sale. They just come to you and give you a check, tow it away within a couple days. Check on there and see if it's more than the dealer is offering.

I don't see dealers as 'low balling'. They have standard figures they are going to use according to the market and wholesale/auction pricing. Private sale (auto trader and such) will get you more money, but definitely a hassle with all the tire kickers trying to find a way to annoy you and waste your time.

This is true.

A dealer is only going to give you (at best) wholesale black book pricing. If it's an older vehicle that they don't want to carry on the lot, they'll offer you slightly less than black book, run it straight to the auction and hopefully make a few hundred bucks for their time. If it's a newer one they can sell, they're going to have to buy it for wholesale pricing and stick it on the lot and wait for someone to buy it. There's a carrying cost for vehicles that sit on the lot since it's tying up their cash. After so many days if it doesn't sell, it gets sent to auction to recoup whatever they can out of it. If the market for that vehicle swings out of their favor they could actually lose money on the vehicle. If it swings the other way, they could make some money. It's a calculated risk.

It's strictly a business decision. They have a set amount of profit they need to make to maintain operations. If they can't get that from your vehicle it's not worth their time.

Don't take it personally. You look for the best deal when you buy/sell anything. It's no different with them.

 

[suicideking]

This is true.

A dealer is only going to give you (at best) wholesale black book pricing. If it's an older vehicle that they don't want to carry on the lot, they'll offer you slightly less than black book, run it straight to the auction and hopefully make a few hundred bucks for their time. If it's a newer one they can sell, they're going to have to buy it for wholesale pricing and stick it on the lot and wait for someone to buy it. There's a carrying cost for vehicles that sit on the lot since it's tying up their cash. After so many days if it doesn't sell, it gets sent to auction to recoup whatever they can out of it. If the market for that vehicle swings out of their favor they could actually lose money on the vehicle. If it swings the other way, they could make some money. It's a calculated risk.

It's strictly a business decision. They have a set amount of profit they need to make to maintain operations. If they can't get that from your vehicle it's not worth their time.

Don't take it personally. You look for the best deal when you buy/sell anything. It's no different with them.

That's precisely what happened with the 2013 Prius. The salesman was polite, but just told us flat out that they don't really want it (over 120K miles) and can't give us much for it. Better off selling on our own. I know many don't feel comfortable selling it on their own, but you're going to lose a big chunk of money by trading in many vehicles. Especially high mileage that they know will end up at auction. It's a huge risk for the dealers and they aren't in business to lose money.

Last vehicle I traded in was an F150 that needed a new engine and had some other issues as well. Probably going to try Carvana and similar for all future used vehicles that are in operating condition.

 

[Roncad]

With 38 years experience as a wholesale car dealer let me help with all your preconceived notions about dealerships. Assuming you think you know something concrete and consistent about different car stores is like telling someone you know everything about women and they are all the same. The profit margin in new vehicles to dealer cost from manufacturer to retail is a helluva lot less than you think. Many new cars are sold with just enough profit to pay the flooring costs and a minimum commission to the salesman. The cheaper the vehicle the less profit percentage. A volume store meeting its target for sales will get money from the manufacturer at the end of the year, but if they don't meet it.....too bad. The largest profit margins in a new car are from manufacturer to dealer which can't be negotiated and rarely known. To be a very PROFITABLE car store relies on used car sales, parts, repairs, finance including aftermarket products and warranties and paint and body.

Kelley blue book trade in value is a good base to start your value and enter your options and mileage manually. Then walk around your truck and pick it apart like it should be perfect and they will deduct from there. If it is nice then have it professionally detailed ahead of time. I know stores that wont sell vehicles over 5 years old with over 60,000 miles because of tougher financing and more wear and tear . I also know of new car stores that will sell anything that is cheap and will smog and safety, but dont expect any warranty. A lot of those decisions are based on geographic locations. I watched a Toyota Tacoma 4X4 sold in a day at a Toyota store with 260,000 miles on it because they had just installed a new motor in it.

Rebates and low financing rates are offered on slow selling models and/or slow sales in general and come from the manufacturer's profit. Then you have to understand the differences between a large volume store and a low volume one. Another important factor is to check out a store's inventory. Lots of used trucks on their lot may tell you they sell a lot of used or they don't really need your truck. And then we get into the financial situation of the store itself.......new car inventory is owned by a bank and used owned by the dealership. After Covid and the challenging economy the store may be limited financially in keeping used inventory and will wholesale out for auction value. We rely on Kelley Blue Book and NADA car values because this is how financial institutions lend money on vehicles to customers and also limit their losses on repos.

And lastly, dealership philosophy on how to look at a trade-in and the dealer appraiser's abilities to judge a cars value and condition. Some appraisers pay a fair price, some pay too much, and some try to steal your trade. If you own an older exceptional low miles vehicle (and not low miles per year) try retailing the vehicle first.........get a couple of trade in quotes first and then ask whatever you think is reasonable over that amount retail. Sorry this was long but i hope it helps.

 

[sblack33741]

I have visited 3 different dealerships in my area and they are low balling on the value of my truck. 2016 1500 Lonestar with 30620 miles. Can you guys chime in on what you think a fair trade in value is for my truck. The most they are offering is $15000, I simply just walk away and go home. It's not a new truck but with very low miles considering the year of the truck.

Sell it to Carmax and then walk in with the check. Almost all trade in ate low balling.