Falling value

[John Woodard]

I really like my 2002 ST, but it appears that it's just not worth very much as a trade in on a new one . I'm thinking that this might be a vehicle the steer away from because the value drops so fast . What do you guys think about it ?

 

[2]

Pretty much all vehicles are in the same boat right now, it is due to the price of new vehicles coming down so much. Why would someone by a used one for the same price they could get a new one for?

 

[Kevin Palmer]

It is what it is. Very few vehicles are doing any better than our Tracs. Tis the season

 

[Dre L]

I don't know what you guys are talking about, KBB.com puts my trade in value at $10,400, private party $13K, retail $15K.



It's a 2001 with 60K miles in Excellent condition. I think that is a very good trade in value compared to most vehicles.



You do need to realize that after 60K miles, the value drops through the floor on any vehicle. If trade in is your concern, then you need to consider doing so at 60K on any vehicle.

 

[Larry Phillips]

Just wait until you hit 100,000 like I did... Good thing I don't plan on getting rid of her too soon...

 

[Richard L]

nobleman,

What Kelly Blue Books says as trade-in value is not likely what you will get from a dealer during trade, especially if the new vehicle has large rebates or special pricing incentives. Discounted prices, low interst loans, and big rebates lower the value on used vehicles. To prevent the dealers from getting too much money tied up in used car inventories, they must be able to sell them to Used Car dealerships at wholesale prices and either break even or make a small profit. Dealers only keep and sell those vehicles that are popular in their area, and can turn a profit very quickly. If it sits on the lot it's costing them money.



Having said that, and having worked as a salesman at a local Ford dealer, nearly all dealerships make their biggest profits on Used Car sales rather than the New Car sales. At our dealership, the top salesman sold 10 used vehicles for every new vehicle he sold and made twice as much money as any salesman selling the same number of new cars. On Saturdays we would get bonuses for the guy who sold the first vehicle, the most vehicles, or even the highest total sales dollars for the day. There was also an extra bonus for anyone who sold the used car that had been on the lot the longest.



The dealerships and salesman make at least twice, and likely 3 or 4 times the profit and commission sellung a used vehicle for $10K than selling a $30K New vehicle.



...Rich

 

[Tom Schindler]

Gas prices are also a concern. people aren't buying trucks and SUV's like they used to.



Looking up trade in values is hard to do. You also need to look at initial costs, including rebates to see if you are loosing as much money you think you are.



Lets say, for example, we have three identical trucks.



Ford Sport Trac, Nissan Frontier Crew cab, and Toyota Tacoma crew cab.



Lets say the three trucks had an MSRP of $30,000 each.



The trade in value for the Trac is 10,000

Toyota 11,000

Nissan 11,000



Nissan and Toyota did not have any rebates, but the Trac had a $2,000 rebate.



You paid sticker price for each.



The Trac is worth 1 grand less, but you paid $2,000 less when you got it.



Did you loose more money on the Trac?



You actually made $1,000 compared to the Nissan and Toyota on trade-in. You spent less initially on the Trac then you did on the Toyota or Nissan.



For me, I could care less about trade-in values. I drive my vehicles in the ground. 10 years and they are pretty much beat to death. So, odds are, my next new vehicle to replace my Trac will be a 2012. By that time, it isn't worth crap. Dealer gives me $1,000 to take my vehicle off my hands.





Tom

 

[Dre L]

You know, I priced a comparable tacoma, the resell is about the same as the trac.



I know that what kbb says is not what a dealer will offer you, that's where negotiations come in. Believe me, I can screw the dealership and the bank at the same time. Especially, like Caymen said, since I keep a car around for a while.