Vehicle Trade FAQ
How is a trade vehicles value determined and why might the value of my vehicle be different than the value I have obtained from a internet web site?
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My car has air conditioning, but it's broken; do I consider it equiped?
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How do I determine if my car is in Good Condition or Fair Condition?
1. What are Retail Values?
The Suggested Retail Value is representative of dealers' average asking prices nationally. These prices do not reflect actual value but an averaged rate based on a vehicle that has been cleared of all defects, reconditioning, safety checks and servicing and was within a mileage range to be resold on the public market. The final sale price is dependant on the vehicle's actual condition, popularity, type of warranty offered and local market conditions.
2. What are Private Party Values?
Private Party Value is what a buyer can expect to pay when buying a used car from a private party. It may also represent the value you might expect to receive when selling your own used car to another private party. The Private Party Value assumes the vehicle is sold "As Is" and carries no warranty (other than the continuing factory warranty). The final sale price may vary depending on the vehicle's actual condition and local market conditions. This value may also be used to derive Fair Market Value for insurance and vehicle donation purposes.
3. What are Trade-In Values?
Trade-in Value is what consumers can expect to receive from a dealer for a trade-in vehicle assuming an accurate appraisal of condition. This value will likely be less than the Private Party Value because the reselling dealer incurs the cost of safety inspections, reconditioning and other costs of doing business. Again, market conditions, vehicle popularity and dealer costs can affect trade value by lowering the value of the vehicle if used as a trade in.
4. Is it better to sell my car myself or trade it in?
This is a question of personal preference. When you trade a car in, the dealer must then absorb the cost of making the vehicle ready for sale, reconditioning, advertising, sales commissions, arranging financing and insurance and standing behind the vehicle for any mechanical or safety problems. You may get more for your car if you sell it yourself, but you need to consider the value of your time, the aggravation of performing at least some of the above tasks to get the vehicle into a suitable resale condition and the liability of making appointments, giving a test drive and possible liability if sold defective.
5. My car has air conditioning, but it's broken; do I consider
it equiped?
Yes. But, during your vehicles appraisal process the repair or replacment cost of the broken AC or any other componet will be considered in the value and as such the estimated repair/replacmenet cost of that part or item will be deducted from the value of the trade.
6. Do you value aftermarket equipment? Why would a luggage rack be optional equipment on my van, but not the ski rack that I installed myself?
We only value items which are either factory-installed or "factory quality." In spite of some personal value of after market items, in many cases those items at the dealerships resell value do not increase the value of the vehicle. There are sometimes exceptions to this but in those instances it would be determined on a case by case basis by a trained appraisal expert.
7. How do I determine if my car is in Good Condition as opposed to Fair Condition?
This is a judgment call, so you will need to be as honest with yourself as possible. Think of yourself as the buyer as opposed to the seller. What comes to mind when someone tells you their car is in good condition? Chances are you picture a car with no rust, dents or paint fade. The interior should be clean and the engine in good working order. A vehicle in fair condition should be in good mechanical condition (able to pass all state smog and vehicle inspection requirements), but may show more wear and tear than its age suggests. Often times, a vehicle owner has good memories of their vehicle and consider it to still be a good and dependant vehicle. But in the eyes of a buyer they do not have the history with your vehicle and can view things you consider to be minor or normal wear and tear as serious defects or parts in need of reconditioning. This simply means that your evaluation of your trades condition may be accurate but may also be more forgiving than trade evaluation guidelines may allow.
8. My car is in good condition, but has a "salvage" title. How does that affect the value?
A salvaged, reconstructed or otherwise "clouded" title has a permanent negative effect on the value of a vehicle. The industry rule of thumb is to deduct 20% to 40% of the book value, but salvage title vehicles really should be privately appraised on a case-by-case basis in order to determine their market value.
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