Trade-In Value on Mustang Purchase

[samson]

Curious to hear what most of you do when trading in a vehicle at the dealer. How do you determine the value you are looking to get? Do you bring estimates to the dealer with you? Do you run Carvana or other sources? I have a Mustang order that I'm going to look at this week. All the numbers look good EXCEPT we haven't gotten a value on my trade yet. I just want to go with a number and documentation to present my argument.

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[Zengineer]

Definitely get carvana and all the others. Selling yourself, for those that have the stomach for it, will likely bring highest price. Dealer trade will nost likely be lowest. They buy cars at wholesale price.

If carvana or someone else is higher (and they likely will be), sell to them unless your state offsets sales tax enough to make it worthwhile.

 

[DukeCLR]

Back in December my dealer offered me 25K, the KBB was 33K, I wasn't expecting 33K but I felt 25K was way to low for a 2018 GT PP1 with 15.9K miles on it. I decided to finance the entire 2024 and wait until spring to sell it. Carvana has offered 29.4 for it.. If you can I'd sell it before and bring cash or at least have them match it.

 

[DCS]

Curious to hear what most of you do when trading in a vehicle at the dealer. How do you determine the value you are looking to get? Do you bring estimates to the dealer with you? Do you run Carvana or other sources? I have a Mustang order that I'm going to look at this week. All the numbers look good EXCEPT we haven't gotten a value on my trade yet. I just want to go with a number and documentation to present my argument.

I used KBB for my estimate. The dealer came in about $5K lower on non-discounted Mustang. Fortunately I had the X-Plan to help out.

 

[samson]

Back in December my dealer offered me 25K, the KBB was 33K, I wasn't expecting 33K but I felt 25K was way to low for a 2018 GT PP1 with 15.9K miles on it. I decided to finance the entire 2024 and wait until spring to sell it. Carvana has offered 29.4 for it.. If you can I'd sell it before and bring cash or at least have them match it.

One issue with selling it on my own is I lose the tax break. Essentially in Maryland you don't get taxed on the trade-in value. If they give you $20K on your car, you don't pay excise tax on that $20,000. I will look up my value on KBB and bring with me. Carvana tends to be much higher than other places in terms of valuation. I know dealers aren't fans of it LOL.

 

[samson]

I used KBB for my estimate. The dealer came in about $5K lower on non-discounted Mustang. Fortunately I had the X-Plan to help out.

Thanks. I just ran KBB and it gave me a trade-in value $2K higher than Carvana. Doubt they will match it but it's more documentation I can take for my ask. This is also an X-plan purchase BTW.

 

[DukeCLR]

One issue with selling it on my own is I lose the tax break. Essentially in Maryland you don't get taxed on the trade-in value. If they give you $20K on your car, you don't pay excise tax on that $20,000. I will look up my value on KBB and bring with me. Carvana tends to be much higher than other places in terms of valuation. I know dealers aren't fans of it LOL.

I would have received 1500 in a tax deferral or whatever it was.

 

[samson]

I would have received 1500 in a tax deferral or whatever it was.

Maryland looks for every way possible to tax us. So if I sell it outright I lose the trade-in exemption. They almost eliminated the exemption this year. I suspect next year it will be gone for good.

 

[Zengineer]

Maryland looks for every way possible to tax us. So if I sell it outright I lose the trade-in exemption. They almost eliminated the exemption this year. I suspect next year it will be gone for good.

Yes, and that's why I mentioned that you need to consider the offset of reduced tax...but it's just another number in the equation and is not the same in every state.

Figure out the sales/excise tax savings and add it to the dealer trade offer. Compare that to what other options you have.

Dealers count on buyers who just want it over with and will accept any offer.

 

[samson]

Yes, and that's why I mentioned that you need to consider the offset of reduced tax...but it's just another number in the equation and is not the same in every state.

Figure out the sales/excise tax savings and add it to the dealer trade offer. Compare that to what other options you have.

Dealers count on buyers who just want it over with and will accept any offer.

Unless they give me the trade value I want I'm walking anyway.

 

[Pmamba]

I just commented something similar in a different post.

Dealers seems to subtract like 30% flat out buying from value from what I’ve seen.

If you have a good power sports type dealer, a lot will do consignment on cars and take 10% or work a deal with you to sell.

Best part is you don’t have to deal with any buyers, set a rock bottom price and they usually offer people financing if needed.

 

[Zengineer]

Unless they give me the trade value I want I'm walking anyway.

If you fully negotiate a price on the new one and then afterwards, and ony afterwards, separately ask about a trade and they give you a great price, you are one in a million. It doesn't make them bad people any more than Ford management are bad people because the Mustang GT isn't all new with 700 HP and priced less than last year, it just makes them business people.

 

[samson]

I have never had them work up a price on any car I've purchased including the trade. Typically I tell them I'm not trading anything and wait until the sale price is decided and then tell them I've reconsidered and now want to trade.

But this is an X-Plan deal so the trade was always going to be a separate negotiation.

 

[Rocket Man]

Unless they give me the trade value I want I'm walking anyway.

Might as well start walkin. Dealers only pay wholesale prices for trades. Want a better price?
Check Carmax or Carvana or deal with the low life tire kickers.

 

[Rocket Man]

10 year old SRT Jeep? KBB says in good condition your car is worth 27K. How much are you hoping to get for it?

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