How much value should I expect from my trade-in?

Question

I've struck a deal with 2 dealerships for a new SUV (great price). Now comes my trade-in appraisal today. It's an '04 Accord DX that was in a minor accident (body shop had to replace the driver's door....that's it). Looks GREAT and is easily in excellent condition with low miles (31K). Using Edmunds, NADA and KBB...the trade-in value for this car in "good" condition ranges from $9900 (KBB) to $11800 (NADA). I owe $10,600 on the car. My goal is pay-off and the deal we've made for the new one.

Is that a reasonable goal? Could I do better? Should the simple body-shop work done (by some of the best in town) really hurt the value. It's a GREAT car in GREAT shape.

Answer 1

If it's in excellent shape, and the door was done properly, you should be able to get between 9-10k. Dont' expect anymore unless they are using money from the new car. But that's about all it's worth.

That is wholesale value, retail would be a couple thousand more.

Answer 2

Yes the body work and door replacement could hurt the value of the car. Hondas have VIN# decals on each body panel. Look in the trunk, under hood, on each door, etc. The appraiser will be able to tell that the door is rehung and likely lower the figure.

If the car looks as great as you say, I would go with a private sale on the Honda. You will get more much more money. If the retail price of the car is 11,800, expect to get an offer of about 7,000 from the dealer.

I'd be sure not to do the same thing with the new SUV that you did with the Honda. You may have gotten into a scenario of reverse amortization. That is, you owe more than the car is worth. Be careful because this can really tie you hands in the future.

Answer 3

I should warn you, you WON'T get what you owe for it. A dealer will never pay as much as the customer owes on a vehicle. Trust me, I sell cars and hate it. Typically, dealers will give you about 65% of kbb value. Be smart, don't get screwed. Don't fall for the "up to?s" or the "if you had to"s. They don't care about you, they just want your money and they're gonna sell your trade for twice what they gave you for it. Give em hell until you feel like you won.

Answer 4

Best thing to do to get the most value out of it is to fix the damage. Then do the trade in. Car's value drop greatly when damage and as the years goes by.

First get an estimate for damage, then compare the trade-in blue book value.

Hope you get the best deal.

Answer 5

Be prepared for a "low-ball" offer from the dealer, and difficult negotiations. This is one of the ways they make money, by ripping people off on their trade in car.