Looks like trade in values are down quite a bit

The Kung Flu is affecting ALL trade ins. Cars just aren’t selling right now.

 

That makes the news (any channel)Kung Flu theatre. My wife and I always think how there is no other news anymore just the flu.

 

I've been looking into Tundra as well. If they do come with a redesign then most likely TRD Pro version will not be out right away which is what I'm interested in.

 

If I were to get one it will be one of the higher end ones too. I just want a nice interior. We travel with a small travel trailer for weeks at a time. Usually do about 6500 during 5 week trip so I want to be as comfortable as possible. Also she will be retired in 2 or 3 years so I am pretty sure that will end up being 12 week trips with about 15,000 miles.

 

You wouldn't guess they are down with the prices dealers are asking for used models...

 

Just looked up my trade value, vs looking at it a couple months ago. 4K drop. Ridiculous. For what my truck is worth now I should of just kept my F150

 

Trade in Values vary widely and you can't say the Values are down unless you've been to at least 4 different dealers. After 23 new Car purchases I can't believe some of the deals that did and did not happen. There are too many variables and each Dealer is different.

 

You can say values are down because people aren’t buying. Millions of Americans have been financially affected by Covid and purchasing a vehicle is not currently a priority.

 

I literally just a week ago traded in a 19 Jetta r line with with 5500 miles on it. 6 months old. They paid me way more than I ever thought I’d get. They gave me 18,500. KBB was low 16s for excellent. Man did I hate the Jetta bad. Love my taco

 

I actually enjoyed my Jetta it was pretty quick, I had an R-line as well. Before the Jetta I had a 2017 Tacoma and traded to reduce my payments because I was going to take 3 years off of work and go to law school. However, I decided not to go and am back in a Tacoma. I missed the Tacoma, it was my dream vehicle.

 

Can't understand why guys don't try to sell their vehicles themselves before going to a dealer. Any dealer will only give you his wholesale price and even then he'll pick the vehicle's worth apart.

 

I hear you. It can be a bit of a pain to sell privately.

 

It is going to take awhile for car prices (used) to rebound.

https://www.businessinsider.com/used-car-prices-set-to-drop-coronavirus-pandemic-jpmorgan-2020-4

"There could be one small beacon of light in the economic mess following in the coronavirus pandemic's wake: cheaper cars.

According to JPMorgan, used-car prices could plunge more than 15% as demand for vehicles plummets. That's even more than prices fell in the last recession a decade ago."

 

It depends on the value of the trade in. If it's worth a decent amount it's usually not that big of a difference overall. Yes, you get less at the dealer but a lot of the time don't have to pay taxes again on the trade in value. So that offsets a lot of the loss and it's way less hassle.

 

I was planning to get a new 2020 Tacoma and was gonna use my truck as a trade in. They offered me 24K for my 2018 TRD off road with only 19500 miles on it. I think i'll just try to sell it privately and get back a couple of grand more.

 

Not always the case. Especially Tacomas, I have managed to always get private party NOT kbb trade in on my Tacomas, because dealers know they can sell them as certified used and make a few dollars even if they buy it back higher than say the guy trading in the Silverado. Plus factor in many states having tax credits, most my trucks saved me thousands there just trading over selling outright. It sucks playing the game with another piece but its sometimes more advantageous. For instance my last deal, I paid $37k for a $43k TRD Sport back last year, traded it w/6k miles in Feb on my 2020 for $35k, my sales tax was like a few hundred dollars if anything. No way I could have sold that truck for $35-37k private party. When I traded my 17 for my 19, paid $36.5k for the 17 new, got $32k trade 2 years later and 13k miles, saved me again a few thousand in sales tax. No way I would have been able to sell that truck for $32-35k. Its always a numbers game and pissing match, but to say trading is the worst option especially with our residual value is not accurate. However with the current circumstances, this will likely change and most industry experts have been warning of a used car bubble for years now.

 

I tried selling a previous car myself (not a tacoma) and had every dickhead in the world low balling me, making an offer and not following through, scheduling a test drive and not showing up...finally just traded it in to the dealer.

I'll see if I can find it but watched a video which pointed out all car dealerships (including used) are hurting right now. Sales were down two years in a row and then fell off a cliff with covid. The average used car price across the nation is down 10% from just a few months ago which impacts both trade in and sale values. The best thing to do if looking for a new truck is wait a few months...dealer incentives are going to get better which, personally, think will impact Tacoma as well. You may take a wash on your trade but will get a better deal maybe balancing it out.

 

The actual process the dealer goes through is hidden. Typically a used car buyer who works for the dealer but works independently within the dealership will assign a value for your trade in based upon what they would like to own it for to be able to make a decent profit by selling it on the lot. That actual cash value (ACV) typically does not change. The used car buyer will factor in market values, mileage, condition, needed repairs, whether it can be sold at that dealer or needs to be wholesaled, etc. before giving a value for it. Now, the sales manager and/or salesperson may even undercut the ACV when they present the value to you. The goal is for you to get emotional, and basically react in a way where you essentially challenge their valuation. They want the conversation to go like this:

Salesperson: Sir, your truck is worth $21K. That is what we can give you for it.
Customer: What!!?? That is a bullshit offer! No way that my truck is worth that small amount!
Salesperson: Well, what do you think it is worth?
Customer: Way more than that! It is worth at least $30K.
Salesperson: That is a lot. I can ask my manager for more for your truck. If I can get $30K for your truck will you make a purchase today?
Customer: You bet!
Salesperson: OK, I will see what I can do. Can you back up your offer with a deposit to show how serious you are about that price?

And once you give up a deposit the dealer has you trapped until they are done negotiating since you are not going to leave without your money. Of course, they may not have even given you your keys back to your truck yet, making it hard for you to leave anyways.

Not every dealer operates this way but very few dealerships are not set up to negotiate on something, whether that is trade-in value, payment, overall price, etc. etc.

What happened after they brought back a value of $21K. Did you leave? Did they try to get you to negotiate?

 

I don't think the incentives are gonna get much more aggressive, 20 years of Tacoma/Toyota, even in 2008, etc. Toyota doesnt do massive discounts, they adjust production, etc. Reason the brand maintains high resale as a whole including Tacoma. Agree with they other parts though.

 

Another way to deal with buying:
Salesperson (S): Have you settled on what vehicle you would like?
Customer (C): I have if we can agree on numbers. I will give you X and my vehicle for your vehicle out the door.
S: I will have to get my manager to see if that is possible.
C: Go see the manager.
S/M: We can sale you the vehicle for your vehicle with an additional 2K.
C: Thanks for you time and consideration. I don't need a vehicle. Mine is just fine.
(Bet the C will get a call back by the dealership if the C gave a fair offer based on research) If the offer is unreasonable by the customer they may not get a call back.