Resale Value

I have a 2006 Tacoma Pre-runner TRD & 6 yrs later with nearly 80K miles it's still worth 21G's. Gotta love it!! I priced a F150, same year, mileage, & similiar accessories and it was worth 5K less & that was with a V8. I'm not sayin Ford don't make great trucks, I'm saying when it comes time to sell or trade it's a great feeling to have a truck that holds it's value so well.

 

I simply stated that book value is AMAZING for the age & mileage, and the fact it retains it's value very well. No bubble bursting goin on here.

 

Same here.
I paid $19,800 for mine in 2002.
Retail now is $15,515 (retail to compare apples to apples)
That's only $450 depreciation per year!

Trade-in is $11,300, which is still great!

I just did a comparitive KBB for a 2002 dodge durango, similary equiped and same mileage, and the retail is $5,260 and trade-in $2,800 !

 

I love it! I paid 21k for mine about 2 years ago, with 62k miles. now it has 76k miles and its worth that in trade in value, its book value is 23k...
Man I got a killer deal!

 

tacos do have excellent resale value, but it's actually the entire used car market, i'm finding that cars that we bought in 2008 and 2009 actually cost more now, than they did then

 

That's book value. Trying selling it for that, and see how many full price offers you get. An 06, 2wd, depending on miles, is probably going to fetch around 17 not 21.
The book value on these trucks is way high. Stroll over to the classifieds and see how guys are doing trying to fetch book value.
You can get new Tacomas, TRD, 4x4, for under 30k. So all these people are dreaming when they list their 2010, 11, 12s at 28 or 29k. I've seen people listing them for more then a new one, then wonder why they don't have any bites.

The only good the high book value does, is makes unknowing people think you are giving them a good deal.

 

My dealer pulled up KBB when we were negotiating the purchase price. It was more than sticker. KBB is definitely inflated.

 

Resale is good but its finding a buyer.
In my region there are a lot of tacomas for sale.
I tried selling my 06 4x4 DC 60k myself before trading w/ an extended warranty, well kept, well modded, 2 sets of tires/wheels, cap.
Had a couple of calls & tire kickers, maybe one serious look.
I ended up trading it for 17.5k, taking all the mods off & reselling those. That worked out alright.
But there were a few dealers that were around 15k trade-in

 

It depends a lot on where you live. I paid 27,000 for my 07 DCSB SR5 4x4. It had 84,000 miles on it when I traded last month and I ended up getting 20,000 for it. I could have easily gotten 22-23000 in a private party sale.

 

Kelly Blue Book is just a generic estimate. It really does not account for things like regional demand. As in any market, price is set by supply and demand. If you live in an area where there is no demand for the truck in the trim you are selling, the final selling price someone will be willing to pay will be much lower than KBB estimates. e.g.--everyone in your area wants a 4x4 and a lot of used SR5's are on the market. You won't get KBB for an SR5. You would likely get buyers willing to pay KBB(or more) for the 4x4 because everyone wants one in your area and it turns into a bidding war.

Appraisal quotes that come from entities like KBB are used by insurance companies or banks to appraise current vehicle values. What someone will be willing to pay for your vehicle is not up to KBB to decide. It is up to the buyer. If the buyer does not think the used vehicle is worth the asking price, they will move on to something else. You won't really know what your vehicle is worth in actual sales value until you try to sell it in your area. If you get no offers, you will be forced to lower the price until you start getting inquiries. You can start off with a KBB estimate. But that is not guarantee that you will get it. Basically, KBB is a max ceiling that your insurance company would pay if your truck was totaled. It is not an estimate of an expected used sales price. It is a guestimate of what your vehicle is worth to a lender or insurer, not what someone in your area would be willing to pay for it. Book value and retail sales value are two totally different things. Most people usually overestimate what they think the retail sales value of their vehicle is.

 

I agree KBB is a great guide with regional markets coming in to play.

The blue book value for some 1GEN tacomas & tundras in my area to not accurately valued in the guide due to the frame replacement program.
Those trucks have brand new frames, brake lines, shocks, gas lines.
One of my friends had it done then swapped the bed out for one from the south factory painted to match. The truck looks brand new!

Trading mine this time worked ok since I bought it new in 2007 for 24500, traded for 17.5, sold the extras for 2k, cashed in the extended warranty, $450.
So yeah I got close to 20k for it owed nothing.
The truck I bought was a leftover previous model year just like the 06 so it had a good rebate & priced right.
I usually hate trading in, much prefer selling outright.

 

They have the best resale value out of any vehicle. That's why I bought a new one for a few grand more. I seen one on carmax with 70K and they were asking $26K. I'd price it higher and let that be the buffer. This way you get close to your $21K without going under. Don't worry you'll get it sold for what it's worth.

 

Yeah. The easiest and quickest way to sell your vehicle is to trade it in. That's why so many people do it. They are willing to take less just to not have the hassles.

Also, the IRS uses KBB estimates. If you sell your vehicle for more than KBB, you technically have to file the net gain as profit income. According to the IRS, you made money off the transaction. Unfortunately, unless you are a dealer, you cannot report a loss for a sale under KBB for a credit.

 

Are you sure about this? I know you said technically, but you have already paid taxes on your car when you purchased it, and at least in Kansas you pay personal propert tax each year. I don't think you have to file capital gains on a car if you sell for a profit. I could be wrong but I have been around the car business for a long time and never heard this.

 

Technically, anything you sell above market book value is considered earned income. Assets are not taxed, but profit on assets is. It is not something the IRS would go after you for, unless we were talking a rare Ferrari you sold for $1M above book value. If it was currently valued at $1M as an asset by KBB and you sold it for $2M, yes, you would have a problem if you did not declare it and pay tax on the $1M earned income from the sale.

Technically, you are violating tax laws by having a garage sale and not reporting the profit from the sales. A lemonade stand, even. You are making profit and income where none existed before. The IRS wants their cut of the gains. Again, I say technically. Nobody will go after you, unless we are talking substantial income that you could not hide--like a $1M profit in the sale of a vehicle.

I am just using this to highlight how KBB is used. It is less about sales values you should get and more about generic appraised values for entities like the IRS, Insurance companies, etc..

 

I just checked private party on my Taco and it's listed at $31,800. Pretty funny since it stickered at $29,900 two years ago. KBB is way inflated.

 

A dealer will use the KBB when they can see it benefits them. When is doesn't, they deem it irrelevant.

 

I agree that Tacoma trucks hold their value well. I have a co-worker that bought a new 2011 Chevy 2500 4WD diesel for $60K about a month after I bought my 2011 Tacoma 4WD DCSB. He comes to work a few weeks ago tells us he has a neighbor that just bought a truck similar to his for $32K. He's a little cranky thinking his truck has lost 50% value. Another co-worker pipes up and asks me if my truck has lost nearly 50% of it's value. We check KBB and his truck is still showing a value of $49K, mine actually showed more than I paid for it. I know, apple to oranges, but interesting none the less.

 

Well, The Toyota Tundra was voted the most reliable truck by JD power and associates for at least 7 consecutive straight years now. And the Tacoma is it's little brother, so that does not surprise me at all.