KBB versus reality for trade in (2018 OR)

Hello all, waifu and I need to switch to 4Runner as our family has grown since we originally got our truck.

KBB says the trade in value is $34K-36K for our Tacoma 2018 OR 5' black with 33,100 miles (very good condition, mechanically excellent condition), but the dealer with the 4Runner we like is offering $32K for our truck.

Still not a bad deal considering what we originally paid for it.

Should I "get real" and understand that I'll receive less for a trade in than the hassle of a private sale? Or is KBB actually right in some cases?

lol, thanks all!

 

I think it would always be safe to assume dealerships will offer an average of $3-5k below KBB "value" so they can still flip it and make a small profit themselves.

 

How many dealers have you taken it to? Get comparison offers from carvana and CarMax and another dealer or two. That will tell you what your real trade window is.

 

The answer is- it’s regional
As @Rock Lobster mentioned, get real quotes from multiple outlets.

 

Thanks guys

 

In my.experience, NADA is more accurate. Also factor in current market value.

 

KBB is two week old data that takes a week to prepare.
The downward pressure on pricing is moving faster than any of the guides can keep up.

 

KBB sucks ass! Nada book is what banks and dealers use and black book is what dealers use to buy. It comes out weekly and more accurate because its what they sell at auctions for. Sometimes dealers buy off NADA as black book may be too high and sometimes black book is higher. What ever has the best numbers to buy and sell under.

 

KBB also has an "Instant Cash Offer" option that allegedly is an actual offer from a participating dealer, so you might try that as one of your comparisons. Doesn't mean that once you get there to let them inspect your truck they don't come up with some BS reason to lowball you (they are a dealership after all), but it could be a source to add to your mix for comparison.

 

Former sales director here. KBB matters but not as much as you think. It’s better for lenders than it is for dealers or consumers. Most dealers use programs such as vauto that plugs your truck into the market and allows them to set a profit margin and see how competitive they’ll be priced.

a quick search near me shows a 2018 OR with 25k miles and dealer is asking $36,800. So if you’re in my region and I take that in on trade I need $1,000-2,000 for reconditioning, $500 pack, $209 detail, and $200 safety inspection. So basically worse case scenario I’m adding $3,000 to my internal cost before it hits the lot. If I give you $36,000 I’m then in it $39,000 and if I’m a Toyota franchise that sells at MSRP I’m never gonna move it when I can flip you to a new Tacoma for the same price that hasn’t been farted in yet.
So if I hit you at $32k, maybe it needs a windshield, tires, every vehicle gets an oil change I’m now in it for $34,000 and I can list it for $37,000 and hope the one for $36,800 is the wrong color so you’ll buy mine.
hope that helps

 

def try carmax for value and get a written appraisal a lot of times they’ll offer more and with it in writing you can use that for leverage at the dealer for trade in

 

KBB value is Trade in value for the vehicle. that is how much the car should be receive by the dealer. if you go to the website there is private party tab that will tell you basically how much they can sell it for.

Now for the OP, you can get quotes from different dealers. or you can ask for more on the trade in. ( they want you in a different car ). when i got my tacoma, the Chevy dealer was giving me 14k for my trade in. filled carvana trade in form and they wanted to give me 11k. and when i wen to the toyota dealer they gave me 15k and wen i said i would not pay that amount they came back and gave me another grand for 16k trade in. this was in february and i got lucky because this is where the dealer started to stack up on cars to do market adjustment on.

 

Not sure about your state but most you don't have to pay tax again on your trade in value. So factor that in too vs private sale.

 

This is exactly what goes on behind the scenes. People think we just take cars in on trade and spritz some show wax on them before going to the used car lot. Nope.

 

If you are going to trade, I would do it soon, the auction prices are dropping sometimes more than 1% a week and have been dropping for several weeks now. Carmax might be a good indicator if your dealers offer is high or low, and if Carvana still wants to pay you too much, go for it. Carvana is more than likely going to go into bankruptcy and has lost tons of money, so I am not sure if they are offering more than they should anymore.

 

Thanks all. Looking at trading it in.

 

KBB was right on for my trade in back in August. Things have changed a bit since then, but it was accurate. As stated, its regional though. Most dealers here use KBB which is good, cuz its usually higher. Ive heard in other parts of the country they use NADA, which sux cuz its lower. I really havent heard of any using Edmunds, which is good cuz thats the lowest.
Id go in and negotiate off KBB, but be realistic about your trades condition and factor in options, etc.

 

I negotiated kbb trade in value on my last tacoma. I brought the printout with me.
Make sure you negotiate the trade in value separate from the new car purchase price.
Dealers try to bundle everything together to confuse the customer.

 

...thanks for the instructional paragraph....I guess...? Not entirely sure how my general statement presented as if I wasn't familiar with the KBB website layout...but I suppose I can apprecite your act of helpfulness towards someone you possibly presumed didn't know his way around the interwebs...haha.

 

How much "recondtioning" does a truck with 25k miles on it need? What would that include?