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TwitterQuestion by Topsail: Trying to trade my car and dealer is using “auction” value!?
I’m trying to deal for a new car and have a great 2004 to trade in. I like to trade just so I don’t have to go through the hassle of selling it myself.
So Edmund’s says $ 18,000 for “trade-in” value of my car but the Toyota dealer says $ 15,000 for “auction value” is all they’ll give “because they lose money” paying “trade-in” value. Also, they’re not getting close to cutting enough on the new car…according to Edmund’s (and Kelly is close), these guys would make $ 3K on the trade for my old car plus $ 2,800 for the new car for a profit of $ 5,800!!! Usually, I get a new car for $ 300-500 profit for the whole deal–I figure the dealer can’t stay in business for zero profit but I don’t like to get clobbered either.
Well I walked after seeing the sales manager–I said there wasn’t any basis for discussion–also told them that lots of Toyota dealers out there. They’ve been calling me every other day since then.
So has anyone heard of this “auction” value? I don’t think its legitimate.
Best answer:
Answer by caravellerr
Ok, this is a typical Toyota dealer tactic. I believe what they meant by “auction” value is actually referred to as “wholesale” value. Toyota dealers have been getting very edgy with the public lately because they can (everyone wants a Corolla, Camry or Prius apparently). They understand that they will sell vehicles, if not to you, to someone else. This gives them the confidence to hammer the value of your trade, and still get you to buy a car. The only way to fight this is to aggressively cut their asking price of the vehicle you want. That way, it’s aleast a 50/50 battle. Good Luck and try another brand.
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