Blue Book Value Of Used Car

Q.I am in the market of buying a new car and I would like some advice about trading-in. I want to trade-in because I don't want to sell the car myself. My car is in great shape. No accident no dent. '98 car with 45K miles. Should I expect somewhere above or below Bluebook's trade-in (excellent) price? How difference is trade-in value from dealer to dealer? How negotiable is it? There were car buying tips that said never mention about trade-in until after negotiated new car's price. Which I think makes little sense since the dealer can still price my car lower to make up profit they lost on the new car.

A.Unless this is a BMW Z8 or something similarly rare, you *will* get hosed 100% of the time when you trade-in. Typical dealer financial reporting structures have new car sales reported separately from used car sales. When you trade-in a car, you're selling it to the used car operation, who, frankly, doesn't give a rat's ass whether you buy a new car or not. They have to pay you a low enough figure for them to make their required margin after cleanup and resale/wholesale. Since most cars get wholesaled, you should expect to see quite a few hundreds of dollars under recent wholesale prices (in *your* geographic area) as the top-dollar offer from the used-car guy. The sole exception is cars that are in demand and will be sold off the dealer's lot and when there's plenty of warranty coverage left. Then you might, if you're lucky, get the current wholesale price. So, a good place to start with what the dealer will offer you is one-half to two thirds the online "value", barring any special interest in your vehicle. If it's an ordinary model, forget it. And, I agree with you regarding the stupidity of the advice to negotiate each deal separately. Makes no sense whatsoever. Your primary interest is what it will cost you to get the new car out the door, including the trade. If the dealer wants to deal bad enough, the new car department will put some pressure on the used car guys, or share the risk with them. The situation is even worse if you have to order the car. If you're expecting to trade-in at some indeterminate future date, you will be doubly screwed. They *will* reappraise your car, and I can assure you that the new "value" is going to be lower. But they really have you because your new wheels is sitting there, just waiting for you to roll out in it. So they get you when your resistance is as low as it can be. If you don't want to sell it yourself, for which I don't blame you, your best option is to shop you old car around at used car lots for an outright sale, or at one of those places that buys for auction. At least you'll get a no-games price.

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