WHERE TO GET BEST IDEA OF TRADE IN VALUE?

[ChrisNLA]

I checked Carvana against KBB, Driveway and one other in the past. there was at least $6,000 difference from high to low - KBB and Carvana were the lowest of them all, Driveway was the top dog by a couple of grand. The dealer came within $500 of matching Driveway's higher number.

But I checked my wife's current Jeep - and found the opposite. So looks like they can be low-ballers, or on top of the game.

Always consider tax consequences of selling vs. trading, depending on what state you live in. You can often take a bit less from a dealer, and if selling, have to get much more to cover the extra taxes. Varies with your state.

What it's worth is what a buyer and seller agree it's worth, not what someone else thinks it's worth.

I have never checked against Carvana, but I have always used KBB as a jump off point. Most trade in's I have ever done landed pretty close to KBB value, and I was fine with that. I did have one that came in a couple thousand or more under KBB. Didn't buy from them.

Good point on taxes. Sometimes the value of selling it to Carvana or private sell may not be worth it when considering tax breaks on the new ride. If I trade in locally, I only end up owing tax on the cost of the new vehicle, less the trade value of the old one.

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[ShadowsPapa]

If I trade in locally, I only end up owing tax on the cost of the new vehicle, less the trade value of the old one.

Yeah, same here in Iowa. you pay the tax on the new vehicle price in total if there's no trade, but with a trade, they subtract the value of the trade and only tax the difference.
When I bought my first JT is was close - I was so frustrated with the trade amount I did the math and sold my truck to a Chevy dealer and bought the JT outright.
After the taxes were figured, I think I came out a couple hundred ahead but I could have lost out, too.

 

[Baxter]

Yeah, same here in Iowa. you pay the tax on the new vehicle price in total if there's no trade, but with a trade, they subtract the value of the trade and only tax the difference.

Same here in Kentucky

 

[Mr Miami]

Just shop around. You will be surprised how different the trade-in amounts can be.

 

[NC_Overland]

I have never checked against Carvana, but I have always used KBB as a jump off point. Most trade in's I have ever done landed pretty close to KBB value, and I was fine with that. I did have one that came in a couple thousand or more under KBB. Didn't buy from them.

Good point on taxes. Sometimes the value of selling it to Carvana or private sell may not be worth it when considering tax breaks on the new ride. If I trade in locally, I only end up owing tax on the cost of the new vehicle, less the trade value of the old one.

Every single time I’ve compared carvana to carmax or KBB, Carvana is $2-3k or more higher. I honestly don’t understand how they’re still in business. They do basically everything wrong and operate in the red, but they’re a great resource for getting a proper trade allowance. Carmax is in trouble and closing stores btw.

 

[Hootbro]

Every single time I’ve compared carvana to carmax or KBB, Carvana is $2-3k or more higher. I honestly don’t understand how they’re still in business. They do basically everything wrong and operate in the red, but they’re a great resource for getting a proper trade allowance. Carmax is in trouble and closing stores btw.

Carvana makes their money in a separate but align LLC for sub prime lending. The son that started it on paper has a father that was convicted of fraud that runs it through his son and has a majority shareholder stake. They did a classic "Pump and Dump" on the stock and made their millions selling a significant amount of shares a few years ago.

There is a few videos on the Tubes breaking down the father/son team in how they structure their running of Carvana that for most outward appearances, would be consider fraudulent but due to the corporate structuring and layering of the business, it basically equates to legalized fraud (to their investors) for lack of a better term.

 

[LouisvEarlleJT]

Just post it for sale here and the usual shit in your thread members will make sure to offer their opinion.

Naw, no need to make a whole new thread, we can start that here.

$5, it’s worth $5. Add $0.25 for tasteful mods. Subtract $1.50 for an angry grille.

 

[Supazuk]

whats a trade in? If you have to sell you are far better off selling it out right dealer is gonna hit you hard on a trade in
But honestly If you are worried about resale value before the 4 year loan is up .. you might a well have just leased it

Personally I buy a vehicle to own it and run into the ground... I know I'm gonna get the sawzall out some time before its even paid off.

 

[ShadowsPapa]

whats a trade in? If you have to sell you are far better off selling it out right dealer is gonna hit you hard on a trade in

Doesn't always work that way. You have to get thousands more in a private sale to cover the extra taxes you will pay here.
So you think hey, I got 4K more selling it myself! And in the end, you might have 1K more because you pay it in taxes on the new one.
It really varies - for my 22, the dealer gave me withing 500 of the best online offer, and that was Driveway. The others were thousands behind them, including Carvana, Carmax and KBB. Their offers were laughable. Under 40K - while driveway offered over 40K and the dealer came close to that. Next time, it wasn't the same - but I was still better off trading due to the tax consequences.
You can't say it's always one way or another - a clever person will do their own research, get their own numbers, and even play those against the dealer.
There is no one fits all or it's always this way thing.
I've even had dealers beat my expectations - they did when we traded my wife's 2018 WK2 for a 21 - beat every number I found.

(I also won't support Carvana because I think they are shysters............. so there is that. I don't like to deal with outright fraudsters)

 

[ShadowsPapa]

Carvana makes their money in a separate but align LLC for sub prime lending. The son that started it on paper has a father that was convicted of fraud that runs it through his son and has a majority shareholder stake. They did a classic "Pump and Dump" on the stock and made their millions selling a significant amount of shares a few years ago.

There is a few videos on the Tubes breaking down the father/son team in how they structure their running of Carvana that for most outward appearances, would be consider fraudulent but due to the corporate structuring and layering of the business, it basically equates to legalized fraud (to their investors) for lack of a better term.

They survived only because they got their bondholders to agree to a deal............ they've been on the edge before and are banned from selling cars in some areas -

I will never deal with these shysters and will never accept a vehicle without a title in hand if used or at least proof it has been submitted to the county if new.

 

[Supazuk]

Naw, no need to make a whole new thread, we can start that here.

$5, it’s worth $5. Add $0.25 for tasteful mods. Subtract $1.50 for an angry grille.

Doesn't always work that way. You have to get thousands more in a private sale to cover the extra taxes you will pay here.
So you think hey, I got 4K more selling it myself! And in the end, you might have 1K more because you pay it in taxes on the new one.
It really varies - for my 22, the dealer gave me withing 500 of the best online offer, and that was Driveway. The others were thousands behind them, including Carvana, Carmax and KBB. Their offers were laughable. Under 40K - while driveway offered over 40K and the dealer came close to that. Next time, it wasn't the same - but I was still better off trading due to the tax consequences.
You can't say it's always one way or another - a clever person will do their own research, get their own numbers, and even play those against the dealer.
There is no one fits all or it's always this way thing.
I've even had dealers beat my expectations - they did when we traded my wife's 2018 WK2 for a 21 - beat every number I found.

(I also won't support Carvana because I think they are shysters............. so there is that. I don't like to deal with outright fraudsters)

honestly they way you trade in buying was not the best way you would have better off with a lease

 

[Hootbro]

They survived only because they got their bondholders to agree to a deal...........

The deal they agreed to is the bondholders only taking in the first couple of inches instead of the back couple of inches in the keester.

It is a house of cards the Father/Son team are playing and they could care less if it falls tomorrow because they have already cashed out enough stock with market manipulation to be set financially with the bondholders/investors only riding along to try and minimize the eventual take it in the shorts that will come.

The average customer does not care because they are getting a extra trade in premium and/or lax financing requirements anyway.

 

[Mr Miami]

I personally would not buy from Carvana but I have done well with selling to them. Both checks cashed with no problems.

 

[Supazuk]

Doesn't always work that way. You have to get thousands more in a private sale to cover the extra taxes you will pay here.
So you think hey, I got 4K more selling it myself! And in the end, you might have 1K more because you pay it in taxes on the new one.
It really varies - for my 22, the dealer gave me withing 500 of the best online offer, and that was Driveway. The others were thousands behind them, including Carvana, Carmax and KBB. Their offers were laughable. Under 40K - while driveway offered over 40K and the dealer came close to that. Next time, it wasn't the same - but I was still better off trading due to the tax consequences.
You can't say it's always one way or another - a clever person will do their own research, get their own numbers, and even play those against the dealer.
There is no one fits all or it's always this way thing.
I've even had dealers beat my expectations - they did when we traded my wife's 2018 WK2 for a 21 - beat every number I found.

(I also won't support Carvana because I think they are shysters............. so there is that. I don't like to deal with outright fraudsters)

the only fee we have in NH is the registration Fee and its based off MSRP, so I guess in other states that might make sense, but I've also never traded a car in

 

[Gizmo]

Kbb has always been fine for me. If the dealer offers a lot less the vehicle they are selling is usually lower price too which is what brought me their so its proportionate

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