What Is the Trade Value of Your Car?

There is no such thing as a standard or “accurate” trade-in value for used cars.

Trade-in values for used cars are set by a particular dealer on a particular day for a particular car. A dealer will attempt to pay as little as possible based on supply and demand, his profit objectives, and what a customer is willing to accept.

There is a common misconception that used cars have “standard” or “book” trade-in values that all dealers use. Not true.

Online sources such as KBB.com and Edmunds.com (and others) provide estimates of trade-in values, which can vary considerably between them. Dealers don’t use these resources. Customers often show dealers the values they have found on such sites as “proof” of the value of their trade vehicle. These values are meaningless to dealers.

For customers, the best strategy for getting an idea of the trade value of their vehicle is to visit large dealers such as CarMax, Carvana, and Vroom and get real quotes. In fact, if one of these dealers offers you a great deal, sell your vehicle to them and use the money as a down payment on the vehicle of your choice at these or any other dealer.

 

 

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