What is the going rate for dealer trade in on a fully loaded 06 FEH if I want to get an 08 model? I test drove it today and it's sweet!

KBB says it's worth $25k, but that seems awfully high considering a new one is only $30k.

Didn't want to ask the dealer since they'd just give me a pie in the sky number to get me in the door.

 

Around 18K if it's a FWD, around20K if it's 4WD.

I am the Internet Sales Manager at a local car dealer, that is what they are selling for at our dealer auctions & that is what it's worth on a trade.

~John

 

I recently bought my 06 4WD FEH, it is black with the appearance package, step boards, heated leather seats, NAV etc etc etc etc(it has every available option). I bought it with 3900 miles on it in absolutely MINT condition for $20,000.

~John

 

Why is KBB so inaccurate? They claim $25k dealer trade in.

 

I don't know the answer to that, but KBB is almost never right on stuff like that. We base the price of our trade-ins on what we can buy the same vehicle for at the wholesale dealer auctions & that is what every other dealer in the universe does also.

You may well get the KBB trade price on a trade if you pay the msrp on the new vehicle, or if the dealer has a few thousand dollar profit already built into what you're planning to buy, but not if you're getting a decent deal on the new vehicle to begin with.

~John

 

Heck, just think about it -if I can buy the vehicle I just did for $20K, why would a dealer pay $25K for it on a trade??

~John

 

Maybe OT, but I thought you had to keep the 06 for 3 years if you claimed the tax credit. I don't think the odds of getting caught are high, but I don't want to ever deal with the IRS.

Rick.

 

Yes. If you sell it after 1 year, you are supposed to give 2/3 of the credit back. If you sell the car after 2 years, you are supposed to give 1/3 back.

I don't know if you could claim 1/3 of the credit for buying a 2 year old FEH.

 

IIRC, an '06 MY purchased in 2005 CY would have allowed the buyer to take a deduction as opposed to a credit. Had he taken a deduction I believe he would only have to retain it for 2 years. I could have read that wrong though.

 

KBB is suppose to be based on actual, reported, sales. One of the problems is the lag between the data, and the results being published. So, the prices in KBB are basically the prices paid a few months ago and not what the vehicle is worth today. One is suppose to "adjust" the prices for the lag and current market conditions, which almost always means, adjusted down.

As jmorton10 mentioned, check out the wholesale prices, and figure that the dealership will offer you something below that. This way he covers himself, by still being able to turn a profit even if the vehicles needs to be auctioned off.

Also, remember that "horse trading" goes for both the new car price, and your old trade-in price. Don't be afraid ti reject the dealer's first offer on your trade-in, and negotiation a (much) higher price for it.