Determine your trade in value
This process in which dealers determine a trade in value is very important and very simple. First to figure out the amount you should get from the dealer is based on a time proven method. The basic condition of the car, the equipment and options are always taken into consideration. The sources of information are all over, but the dealerships typically will use Kelly Blue Book, Nada, or in some instances the Black Book. The use of actual auction information is also included in most appraisals this will keep the figures accurate to the wholesale market value(s)
Lets do an appraisal together just to get the idea. The vehicle that we will choose will be a 2007 Chrysler Town and Country Limited. Let's say it is average condition and needs tires and a windshield. The vehicle has low miles with only 45245 on the odometer. The vehicle has some exterior scratches and scuffs, the interior is is fair shape and could use a strong detail because of children. The last service was just performed and the vehicles turn signals are not working. We are going to do a quick appraisal on the unit--something similar to what the dealership would do. The first considerations are the base values of this unit:
2007 Chrysler Town and Country Limited
The highest percentage of
will use the Kelly Blue Book guide for the initial values of the unit they are appraising. Remember this publication is used as a guide and most appraisers will only use the first figure for the starting point of valuation.
Example for this Town and Country would be
"KBB" base trade in value $14800---this figure includes the standard equipment and the items that would be included in the trim level.(Limited)
Once this figure is secured-the reconditioning estimates would be deducted, do you remember what they were? Turn signals in op, scratches, dings, windshield, tires, safety service, detail and such. Let us just say that the reconditioning cost estimate is $1500.
This now will bring the base value to $13300.
It does not stop here
In order for the dealer to stay on the market values and trend that vehicles will follow during certain time of year or various states of the economy. POPULARITY will change from season to season. The market for vehicles can change almost overnight in some cases. This is why it is critical for the dealer to know what the auto auctions are saying about the values.
How do you choose the right dealership
The auto auctions conduct weekly sales all over the country and feed the results into data bases. This information forms into certain auction reports such as Manheim, Rental, and Manufacturer sales results. These reports identify the current wholesale market values and trends. The KBB values are compared to the auction values and a figure is generated.
This figure now represents what is derived from KBB and Auction reports. Then ultimately what the potential retail value would be in the area markets for that dealer.
Sound complicated, to a degree it is. It can be very easy to make a mistake if you are not sure what and where to look. REMEMBER THIS lack of attention by you or by the dealer can represent thousands of dollars. The true market and book values are what you would like to see in your trade in. This also means that the dealership should also pay close attention, and not underestimate or overestimate the trade in's value. This is for both your sakes.
What should the value be?
KBB base value equals------------- $14800
base value after reconditioning--- $13300
Auction average for a 2007 ChryslerTown and Ccountry Limited---------- $13500
Retail average for this year, make and model $17988
Carmentors4u would place the value on this van at $13500. This figure is fair, based on market and the guide book values. This wholesale position would also allow a dealership to maintain a profit spread, as to discount and still maintain a fair return on their investment.
Trade in value is a variable that will be very important in any car deal negotiation. To know this figure will help you save Money, Time and Energy every time.
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