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Dan JGC 03-17-2011 10:09 AM

Trade-In: "Kelly Blue Book" vs. "Black Book"
OK...the day is coming...soon I hope...for me to get my new Summit. I have always sold my vehicles and never traded them in. But would prefer a bit to trade in this time.

The home page prominently states "FIND KBB TRADE-IN VALUE: Estimate your vehicles trade in value. GET YOUR PRICE >" Of course, the dealers around me all ignore that.

My dealer, other than being a newer dealership and seemingly reasonable, uses the Black Book. As I understand it, the Black Book is for is at best the AUCTION pricing for dealers....vehicles that dealers buy at auction with little know knowledge of the vehicle's history, etc. Moreover, the Black Book is pricing that a dealer would buy the vehicle at and still be able to sell it to another dealer quickly and still make a profit with the buying dealer also making a profit.

KBB has my trade-in values at $16,300, $17,600, and $18,400 for fair, good, and excellent respectively (private party is $19,000, $20,400, and $21,300 and suggested retail is $23,500). Mine is excellent for sure. When I placed my order the dealership said they would buy my JGC for $15,000 on the spot (starting price)...yesterday the starting price was $13,000 but the salesperson said they don't have any (or very few) used Jeeps on the lot and that they would want mine (specifically said they won't want mine to get away) so they can get more serious on pricing once the day comes to pick up my order (a hassle). The salesperson indicated that they would want it for their used inventory lot...they have two large dealership locations they won't be selling it to another dealer. 38,000 extra clean, well maintained, accident, smoke-free vehicle.

What has been your experience with negotiating trade-in values???

Jpjr 03-17-2011 10:28 AM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
Trade in is a good option to have. Selling direct to private party always goes for more because as you said the dealer also needs to sell to private party and therefore needs to pay less to make money. But trading in is sooooo much easier and often worth the lower price. You should come armed with a reserve price that you won't go below when looking for a trade-in. What I usually do is get a consensus private party price off ebay. I'll look at where a similar truck is being sold...more or less... based on a number of listings. I'll then back off $3-4k or so from that price to arrive at a reasonable trade-in. I'll then contact 2 or 3 dealers to see if I'm in range.

Dan JGC 03-17-2011 10:34 AM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
Because of the sales tax savings on a trade-in (they net the new car price so you only pay sales tax on the net amount when you trade-in) I would probably accept the "fair" condition trade-in price even though it is in "excellent" condition...the problem is they aren't even close to that. I guess they will either get serious or not on that day...seeing how they don't have any used Jeeps in stock...they would need to buy mine in order to get inventory and make a profit.... My salesperson also said, rather surprisingly gloomly and candidly, that this has been a slow sales month so far....

moosehead 03-17-2011 10:57 AM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
Dan, as you know it's tough to get anywhere near market value on a trade in despite net tax benefits and supposed "ease" of transaction. IME, there's nothing easy about any time spent at a dealership, period. and make private party auto sales a ton easier these days, and if you're still waiting for a new vehicle, it doesn't take much effort to post on both sites. If you care to make this effort, take a bunch of great photos which cuts down on show time with potential buyers.

Good luck and enjoy the new rig when she finally touches down.

jgc4ever 03-17-2011 11:02 AM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
I would check pricing as well. Based on the information you have provided, I wouldn't go below $18,400, maybe $18,000, but that's me. They might or might not be willing to do that. You have to decide on what you are willing to trade it in for and hold firm and just not trade it to them if they don't offer what you want.

fourwheelin7 03-17-2011 11:11 AM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
I've dealt a lot in trading and buying cars, about every 3 years. Dealers will almost always use "black book" values for your trade in. Because all car dealerships make their money on service and used cars. They want to give you the lowest price possible so they can turn around and sell it for a huge profit, if it's a vehicle they will keep on their lot that is, if it's not a vehicle they think they can sell on the lot they will wholesale it and that's where they come up with the "black book " value. Set a price you are willing to take for your vehicle and stand by it, you will almost never get more than "fair" KBB value for your vehicle. And don't be set on one dealership either if you have the option of traveling to more than one dealer in a 100-200 mile range do so because every dealership with value your vehicle at a different price. So if you have the option, travel around and get your best price.

iJeep 03-17-2011 11:42 AM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
Don't trade in. Sale it privately and buy your next new one with a larger down payment. When you trade in, you always lose money.

77rednecktruck 03-17-2011 11:46 AM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
I have always traded in a vehicle and felt ripped off every time. This Jeep is the first time I did not have a trade in for (I gave my 05 Crown Vic to my mother in law because their car is dying and they help out with my kids, I want them to be safe) and it was painless. I will sell outright from now on and not deal with the trade in again.

berk483 03-17-2011 11:54 AM

Go to carmax if there is one nearby and they will give you a quote that is good for a week or two. You might be able to use that for a bargaining chip as they are pretty much hassle-free to get from carmax.

Dan JGC 03-17-2011 12:06 PM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
I am stuck with this dealer for trade-in since I ordered the new GC from them so shopping around isn't an option. I did order with the affiliate pricing. I just buy my vehicles outright.

If they gave me KBB "fair" TRADE-IN pricing I would just trade it in since I'd save a grand on sales tax too.

The problem I have is that they aren't even close to KBB "fair" trade-in pricing and mine is a one owner excellent condition vehicle. No accidents, no smoking, all maintenance done. Again, I'm not talking about KBB retail or private party pricing, I'm talking about the lowest KBB trade-in price that they aren't even close me that is ridiculous. has worked well for me in the past and I always post a ton of photos.

I do know that they want this vehicle for their own used car lot...that they don't have any used GC's right now and they are a large Jeep dealer so this one would be an easy sale for them. They can't profit if they don't have the inventory and they need inventory so we'll see how badly they want to buy mine.

Dan JGC 03-17-2011 12:08 PM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
berk483 --- I checked out carmax but they basically use the Black Book pricing like my dealership does and I would lose the sales tax savings of about $1K.

moosehead 03-17-2011 12:08 PM

Re: Trade-In: "Kelly Blue Book" vs. "Black Book"
Courtesy of JoeSchmoe

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