Trade in value

smokeyburnout · November 22, 2020

Hi all,

looking for some advice on trade in value of my 2017. I ordered a 2021 AT4 3500 and the dealer is only offering me $47k on trade on my 2017. The 2017 is a 3500 Duramax Denali SRW w/ 8ft bed, 33,600 miles and fully loaded (rear seat entertainment, sun roof, goose ball package, Z71). I also have Air Lift air bags, Access toneau cover, GM camera package, GM keypad entry, and Weathertech floor liners. The Kelly Blue Book value comes in at $58-60k. Wondering if the dealer is really low balling me. I am able to get the GM supplier discount price on the 2021 so the discount or best price that the dealer advertises shouldn't matter. I feel like the dealer is offering me way too low of a trade in the 2017. Let me know what you guys think. thanks,

ksiesel · November 22, 2020

The dealer may be offering you a bit on the low side for your ‘17. One thing to remember is that you will not be paying tax on the trade in value so if the dealer offers $50k for trade and your sales tax rate is 7%, that would be $3500. If you were to do a private party sale, that’s how much more you’d have to sell it for to break even.

smokeyburnout · November 22, 2020

Hi all,

I accidentally posted this in the half ton section first.......looking for some advice on trade in value of my 2017. I ordered a 2021 AT4 3500 and the dealer is only offering me $47k on trade on my 2017. The 2017 is a 3500 Duramax Denali SRW w/ 8ft bed, 33,600 miles and fully loaded (rear seat entertainment, sun roof, goose ball package, Z71). I also have Air Lift air bags, Access toneau cover, GM camera package, GM keypad entry, and Weathertech floor liners. The Kelly Blue Book value comes in at $58-60k. Wondering if the dealer is really low balling me. I am able to get the GM supplier discount price on the 2021 so the discount or best price that the dealer advertises shouldn't matter. I feel like the dealer is offering me way too low of a trade in the 2017. Let me know what you guys think. thanks,

Bobby Bouchee · November 22, 2020

33k on the clock... put it on FB marketplace for 58G. Any seriously interested party knows what a new one runs, and it'll be gone quick. Especially if you get attention from a young buck working in the oil industry. They eat these up!

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Donstar · November 22, 2020

I would suggest trying a competing dealership but you've already ordered from your current dealer. If you can do better privately, then sell it yourself. In my location I need to consider that we only pay tax on the difference between the trade and the new. This combined with the stresses of selling privately usually makes up for taking less from the dealer. I also negotiate the amount I have to pay to take home the new vehicle. "I don't care if you add more to my trade or take more off the new but..." I feel that if you haven't headed to the door at least once during the negotiation process, you're paying too much.

smokeyburnout · November 22, 2020

appreciate the feedback. I'm fully aware that I need to consider the additional sales tax if I go private party. A little more context on the dealer: they have a 2018 Chevy 2500 used on their website. Their sale price on that matches KBB price exactly. If they do the same on my trade, they will be asking ~$63k. Offering me $47k seems very low. When I challenged them, the dealer said KBB prices are way off and too high, yet they advertise the KBB prices on their website. Feels like they are trying to screw me pretty hard. And this will be the 3rd Duramax HD truck I've bought from them in 7 years......

Bobby Bouchee · November 22, 2020

Since you already ordered the AT4, how much are you on the hook for if you walk?

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smokeyburnout · November 22, 2020

$500.

dplarson · November 22, 2020

Donstar was right on about negotiating. On the old 4 square, always stay in box 1, the sale price of the new rig, ALWAYS!

Also, I'm not coming down on the side of the dealer here but it can be beneficial to understand all sides of the transaction... They can mark the other used truck or your trade in truck at book but are they getting that? They need room to negotiate down from that list price and still profit so keep that in mind. Running a stealership isn't free money.

The advice above about FB Marketplace is spot on. Do not feel loyal to the dealer, they have zero loyalty to you. You'd be lucky to get a free hat for your loyalty there so yes, it is worth the trouble to clean up your truck, take some good pics, list it a little above book, have room to negotiate down a bit and still feel good about it. You'll have more cash in your pocket, even after any additional tax.

In the last year I've listed 2 vehicles on Craigslist AND FB Marketplace. Both sold on FB.

Sent from the demons in my head

smokeyburnout · November 22, 2020

I'm just starting the negotiations with the dealer. The 2021 isn't even in yet so I have some time. Just want to be sure I'm not way out of line with what to expect for on my trade. As for the dealer, they have no new HD trucks on the lot (3 on order - mine plus 2 others) and only 1 used 2018 (gasser). Where the dealer is, the market is exceptional and supply is limited for duramaxes - they'll most likely get the $63k for the truck. What is the best group to sell on FB markets place? The good news is I can manage to buy the 2021 outright and stick it to the dealer if I have to and work to sell my current one outside of that deal.

dplarson · November 22, 2020

Look for local fb groups such as buy sell trade / garage sale / cars for sale / swap meet and join any that allow listing vehicles.
That's for best reach but you don't even have to do that, just go to marketplace and there's a button to sell an item and it will be listed in marketplace. In other words, marketplace is basically it's own group bug not called a group. At the end of creating this listing, it will ask you what other groups you want to list your item in. Check any that allow vehicles.

Good luck man. I went from Chevy LTZ (basically a Chevy Denali) to a base work truck. I love the truck but do miss some of the features. It should sell quick!

Sent from the demons in my head

dplarson · November 22, 2020

Marketplace is great because of the national reach. I listed my LTZ in a few local fb groups plus marketplace. Someone looking for this exact vehicle drove from Idaho to Montana with a van full of kids just for a test drive. Of course at that point the sale was a formality once they had that much time and effort invested in my rig. Yes they bought it

Sent from the demons in my head

Mike GMC · November 22, 2020

If you think it's low, don't take it. Sell it yourself, or try CarMax or Give Me The VIN and see what they offer. Also, check both NADA and Kelly for blue book. Sometimes, they are very different. The dealer will use the lowest one he can find.

stevejones · November 22, 2020

Yes, the dealer is lowballing you - it's what they do.

elcamino · November 22, 2020

Kelly blue means nothing to them when the value a trade-in, they will use GM auction values or wholesale. They will never pay those KBB inflated values on trade in's, its leaves them little margins for profit. Plus, they are talking a vehicle in and have to then sell it so weather you think so or not, there is some risk to that for the dealer because that sale could me months later, its a risk. What its valued today may not be what they can sell if for later. They are in business to make money, you are getting the new vehicle for a fixed invoice supplier price which limits the dealers profit on the vehicle. If think the deal is not to your advantage then you are welcome to go somewhere else and purchase a vehicle. They are in the game to make a profit and there is nothing so force them to bend to your idea of a good deal or limit their profit on a sale. If you were buying your very truck used I bet you would think your KBB value is high.

Edited November 22, 2020 by elcamino