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Wife wants QX 60. found one locally - went to test drive. Fantastic. So they take ours for a spin to get trade in value.
after 20 min, he sits down and says $9k. ( KBB anywhere between $10,200 and $12k ) Retail i see them go for low $15k to 19k ( same model/trim/mileage ) I looked at him directly and said thats insulting. I know they have to make $$$ but this was 3k below high end and 6-8k below retail.
We left and went to CarMax who just sent us trade in offer of $14k
thats a 5k differential. How in the world can these two be almost 50% different? Can someone please help me understand or is it simply the dealer was going to low ball me to make as much on the resale as possible? ?
Bad Salesperson or Dealer to be that much off. All Dealers use the Auction numbers to determine the cars value. There are different auction companies , but that is what is used to determine wholesale value. Typically the dealer will add $2500 to the wholesale price and what it cost to refurbish the vehicle if they are going to resell it. If they are not, they usually buy at auction value or close, then send it to auction.
KBB is not a good place to get used car values. Itcan be off high or low by thousands. KBB and other websites do not buy cars so they are using what is reported or projected by others. The only true way to know a cars value is to find out what someone will write you a check for.
keep in mind also if your new car dealer Was going to send your vehicle to auction and not resell it he could not pay you the same that another company would if they were going to keep the vehicle and resell it. That also has to be taken into account.