WHAT IS THE BEST WAY TO EVALUATE MY TRADE?
Resources to determine value
There are a lot of resources when trying to determine a fair value for your trade. There are online resources like KBB or Edmunds. These can be helpful, but these are sight unseen and typically there's a lot more to the current market and your vehicle's condition.
What is often our first response? - "That's too low". I'm the first to admit that I quickly become a retail customer when buying a car despite my knowledge and background. We're proud of our vehicle. We've taken care of it, serviced it well, and sometimes have emotional attachment to it. So what really goes into it?
Used cars are still somewhat difficult to obtain. Chances are you and a dealer can reach an agreement. The dealer is typically going to rely on wholesale data like Black Book and MMR, which are reflective of recent wholesale transactions. Conditions that a dealer will or should consider are:
- Cosmetic condition - is there any damage that needs to be repaired. Paint and body work can be expensive.
- Tires - Are they serviceable or do they need to be replaced.
- Mechanical - Are there any mechanical repairs needed? A dealer can usually look past a repair of $200 or so, but any major repairs have to be factored into the appraisal.
- Windshield - With all of the technology in the current windshields they can be over $1,000 to replace.
- Previous repairs - Most of the time a minor accident doesn't have a large impact on value. However, a physical inspection is necessary to determine what has been repaired.
What do I do with this information?
Online resources are a great place to start, but I recommend a physical appraisal to understand how all of this comes together in your vehicle's value.
Most dealers of decent size still need used car inventory. They are likely to offer you an appraisal if you are ready to trade or sell. If you are several months away from a decision I would rely on online. A dealer's appraisal and the market can change significantly over that amount of time.
Be open minded. Remember, the dealer is likely to be fair but conservative and we will be fair but optimistic. We never pick the lower number as consumers. Chances are there is middle ground to be found.
Lastly, when it comes to trade condition I am often asked, "should I repair these items on my car to improve my value?". My answer is almost always no. The dealer usually has resources do the repair for less. It's not worth your time, money, or missing a car you may want in my opinion.