Dealer Double Talk

[jerseyguy123]

I went to a used Audi dealer and I wanted to trade my 2019 VW Passat with 8K I was told "KBB books it for 26K, if we take it
to Auction they can get 24K, I was told that they will give me 21K The salesman told me they are giving great deals as
used cars are in demand. Please explain Stay Safe Be well

 

[ZeeOSix]

If KBB shows it as $26K for trade-in value, then the dealership is trying to rip you off. I doubt they are going to take a 2019 with 8K miles "to auction" ... they are pulling weasel tactics.

I'm betting they are also jacking up the prices of their new cars too based on the car situation right now ... they are double weasels if that's going on too.

 

[demarpaint]

@ZeeOSix is correct! Years ago when I was selling cars people would often come in with a trade stating KBB showed their car for more money than we offered them for their trade. Our reply was very simple: "then sell it to Mr. Kelly." Long story short 99.995% of dealers are thieves and rip offs artists, try selling it elsewhere, maybe you'll get more money. Good luck!!

 

[aquariuscsm]

Dealer is not going to give you full book value for your car. They're in the business to make money.

 

[Blagoje]

Is anyone forcing you to accept any offer? Don't worry about it then. I don't know why people act outraged over things like this, no one is ripping you off unless you are knowingly and willfully consenting.

If someone offers you a higher value for your vehicle for selling it to them, then sell it to them. An appraisal from KBB amounts to nothing unless they are offering to take your vehicle in on trade for said amount offered which I'm sure they are not willing to do. You can always sell it to Carvana or CarMax or any countless other number of vehicle purchasing entities.

 

[Donald]

I went to a used Audi dealer and I wanted to trade my 2019 VW Passat with 8K I was told "KBB books it for 26K, if we take it
to Auction they can get 24K, I was told that they will give me 21K The salesman told me they are giving great deals as
used cars are in demand. Please explain Stay Safe Be well

You can tell the salesman is lying when their lips are moving.

While the $21K might be a starting point, I would not believe any explanations. They will say anything to get a sale.

 

[MNgopher]

Explanation: The dealer is business to make money. They would have actually given you the money. Will KBB?

Until someone actually cuts you a check or gives you the money its all talk and nothing more...

 

[AZjeff]

That car would bring crazy money from Carmax or Carvana, no need to mess with a dealer. If you're looking to buy a used car right now it will probably be a wash at the end of the transactions.

Plug your car into Carvana and print out the offer and take it with you. If the dealer says well sell it to Carvana then you say OK I will.

 

[rob1715]

Called stealership for a reason.

 

[Blagoje]

While the $21K might be a starting point, I would not believe any explanations. They will say anything to get a sale.

Here is one explanation that is perfectly legitimate though it may not necessarily work in the customer's favor in every instance. If you trade a vehicle in there is a certain savings in sales tax paid versus acquiring a vehicle without a trade.

I will break it down using a hypothetical $50,000 new vehicle purchased with a 7% sales tax rate. Without the trade you would pay $50,000 plus 7% sales tax. With the trade, let's say the trade value is $21,000, you would pay $50,000 minus $21,000 and then calculate the 7% sales tax based on that amount:

$50,000 x 7% = $3500

$50,000 - $21,000 x 7% = $2030

In the trade scenario the sales tax would only be applied on $29,000 within that transaction this saving the customer nearly $1500. In this instance I would consider a private sale of the trade vehicle if it can be sold in excess of $1500 above the trade value.

 

[kschachn]

One should look for a better dealership. When we bought our Toyota cars the dealer very carefully explained that they may or may not make a wholesale purchase offer for our "trade in", and I would likely do better selling it myself. They also said such an offer is separate from the sale price of the new vehicle and wouldn't be discussed until we negotiated a purchase price for the new car.

 

[Blagoje]

One should look for a better dealership. When we bought our Toyota cars the dealer very carefully explained that they may or may not make a wholesale purchase offer for our "trade in", and I would likely do better selling it myself.

I don't know what timeframe you worked with the dealership you are referring to but suffice it to say that it is a seller's market and has been for 6 months or so.

Dealerships are in a position in which they have all the leverage and while they do need trade vehicles coming in they cannot sacrifice losing money just to acquire one. They MUST maximize potential profit in every transaction lest they contribute to destabilizing their continuation in business.

This does not constitute ripping anyone off, they like many businesses under the current economic circumstances, are just trying to survive just like everyone else. I just recently left employment with the car dealership and they're just happy if you purchase a car from them right now, they would prefer that you trade your vehicle in but if you don't so long as you do purchase a vehicle from them they're 100% fine just getting the sale..

 

[HemiBenny]

Blackbook trade in values on a 2019 VW Passat Wolfsburg is 19,125 (rough) - 23005 (average) -24,525 (clean) adjusted price.
SE-R-Line is 21,735 (rough) - 26,245 (Average) - 28,105 (Clean) adjusted price. Of course this is by region as well, these prices are my region.
These prices are coming up after putting 8,100 miles in the mileage box and choosing no options or deductions.
These are the only two model options given by Blackbook without scanning the vin.
Just an FYI. Cheers.

 

[VWRand]

Here is one explanation that is perfectly legitimate though it may not necessarily work in the customer's favor in every instance. If you trade a vehicle in there is a certain savings in sales tax paid versus acquiring a vehicle without a trade.

I will break it down using a hypothetical $50,000 new vehicle purchased with a 7% sales tax rate. Without the trade you would pay $50,000 plus 7% sales tax. With the trade, let's say the trade value is $21,000, you would pay $50,000 minus $21,000 and then calculate the 7% sales tax based on that amount:

$50,000 x 7% = $3500

$50,000 - $21,000 x 7% = $2030

In the trade scenario the sales tax would only be applied on $29,000 within that transaction this saving the customer nearly $1500. In this instance I would consider a private sale of the trade vehicle if it can be sold in excess of $1500 above the trade value.

Depends on the state. Some make you pay sales tax on the price of the new vehicle without taking the trade in account

 

[Blagoje]

Depends on the state. Some make you pay sales tax on the price of the new vehicle without taking the trade in account

In that case I would definitely sell the vehicle instead of trading it.