I had read that I could expect $13,995 for 'trade in value' on my 2003 Rav4 with 42,600 miles on it. This dealership I went to offered me $15,000 for it. Not that I'm upset or anything lol, I'm just wondering why they would give me MORE money than what it's worth?
(note: my car is paid off)
2007-05-27 07:50:11 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
$15,000 is probably the actual market value of the RAV4, which guides such as Kelley Blue Book do not reflect. When they appraised your vehicle, the manager (or appraiser) looked at the recent auction listings, and how much similar vehicles have been selling for, as well as the demand on their own lot for a 2003 RAV4 with low mileage.
If they're a credible dealer and conducts business the right way, they just gave you an honest appraisal based on the market value. If they're sleazy, they're playing numbers games with you because they read something in what you've said to them to make them think that a high trade-in value is important, so they inflated that, and will whack your wallet somewhere else (i.e. adding fees, not discounting the car at all, finance rates, if applicable, etc.)
2007-05-27 13:02:52 · answer #1 · answered by Ryan K 2 · 3⤊ 0⤋
This is called an "over-allowance" where the dealer gives you more than you expected for your trade by adding some money that they would have discounted from the price of the new vehicle to the actual cash value (ACV) of your trade. It is done o make you think you are getting a good deal for your car, when you are actually getting less.
Example:
New vehicle list price = $30,000
Dealer is actually willing to sell the new vehicle= $28,000
ACV of your car =13,000
You can pay $28,000 and get $13,000 for your trade, for a difference figure of $15,000. You can pay $30,000 and get $15,000 for your trade, again with a difference of $15,000.
Compare the total cost of the deal, not just the trade in allowance.
It may be a good idea to take your current vehicle to some place like Carmax and see what price they say they will pay. This should be really close to the price the dealer sets as ACV and you can see what kind of deal they are really offering
2007-05-27 08:12:59 · answer #2 · answered by fire4511 7 · 2⤊ 0⤋
the dealings have just begun... later they will rip you off, that is how they make money, the 15k offer was to get you in the "box" so they could work on you.
sell it private party, save your money and pay cash for the next car, and a 2003 rav4 will run for 200,000 miles, why sell such a good car ?
2007-05-27 07:53:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They make up for it at the other end...dealers get hidden rebates from the car companies, and can tack on aftermarket items that cost them very little. For instance, the last vehicle I bought, the dealer tacked on floor mats to the tune of $150 to the sales slip, but I caught that and had them remove that item. It all works out at the end and the dealer makes his profit.
2007-05-27 07:56:23 · answer #4 · answered by Jolly 7 · 0⤊ 0⤋
Either they really want your business or they know something you don't.
2007-05-27 07:54:24 · answer #5 · answered by tucsondude 4 · 0⤊ 0⤋