what is "Trade-In Value " when buying a used car ?

Answer 1

it simply is what the dealer gives you for your car.... the market value or actual cash value is something else though and they are usually not the same. The trade in value can be manipulated by the dealer or negotiated on. Also the many sites out their that supposedly give values do not buy cars, the only real value is what someone will pay for it. Go to a Carmax store, they will give you a written offer for your car and I doubt any other dealer will come close. the great part is they will buy your car even if you don't buy one of theirs

Answer 2

The "Trade-In Value" is the value in $ on what the dealer will allow you on your trade towards your new or used car purchase. Your trade is first given a "Wholesale Value" by the used car manager which is partially determined by the "Black" book. Then the miles, condition of the trade and optional features are figured in which could add or subtract to the wholesale price. The Trade-In Value is determined by adding the "discount" amount taken from the price of the new or used car, to the wholesale value of the trade. Coming from the dealer's perspective, the deal is made according to how much gross there is (to play with) already in the new or used car being purchased. If you are purchasing a brand new car, the taxed amount is figured by the difference between the purchase price and the trade-in value. If you are purchasing a used car (like you mentioned in your original question) the tax is figured on the purchase price, not the money difference.

Answer 3

The book price has nothing to do with the trade in value. The trade in value of you motor is what the dealer will give you for it. The car you have might not be in the condition that the cars in the book are taken to be in it could be better or worse.

Answer 4

A notional figure used in negotiation.
All you need worry about is the amount of of money you have to put with your old car to get the new one, trade in values, cost of new car can vary to suit circumstances, a £ 50 trade in allowance against a £ 5000 car is the same as a £5 050 allowance against a £ 10 000 car, either way it costs your car and £ 4 950

Answer 5

Dealers are good at making money. They sell cars for more then you can buy with a private party. They buy cars for less then what you would sell to a private party. All dealers do this. Part of what there selling you legitimate paper work, clean title, warranties. You don't have to worry about getting paid or if they do there job with transferring the title. A friend had to go to court over 8 parking tickets. That where got on a car 4 months after he sold it. The buyers never put it in there name. Dealers are (most of thr time) neat and clean. You just need to decide what works best for you. Good luck.

Answer 6

Trade value means essentially what your car is worth to the trade, ie what it will fetch at auction.

This is where CAP and Glass's get their prices from.

The best advice i can give you when buying a car, is ignore trade prices etc and concentrate on the difference between what your buying and what your part exchanging.

Answer 7

It is the RIP OFF value that a garage will give you for your old car against the price of the one you are buying off them. Avoid it and sell your car privately

Answer 8

It is the value set by the Kelly Blue book for used cars. Before you think the price is to low remember that whatever you get on the trade also reduces the cost of the vehicle by that amount and therby reduces the sales tax you pay.

Answer 9

Basically if your car is worth $20,000. The dealer's "Trade In Value" will be around $10,000.

Answer 10

Nothing because I hate a used car