How is KBB for trade in Values on SUV

[1973911s]

Well, I think I have talked the wife in getting out of the SUV, it is costing us about $500 a month in gas.

I have heard rumors that KBB is off by about 30%, and truth?

I was going to hit carmax next weekend, and see what they would offer.

Michael

[lendaddy]

What is the vehicle?

[1973911s]

2003 Denali XL

[lendaddy]

Out here it would move quick in the highish 20's and they are on lots for low to mid 30's. Hope this helps.

[Steve Carlton]

Try calling a few GMC dealers and ask for the used car manager. Ask him what he'd pay for the car outright, as you're getting an xxx. You should see a pattern develop around a value. Whatever that number is, you should be able to sell it yourself for at least $2-3K more.

[asphaltgambler]

Most dealers / traders use KBB as it more acurately reflects current market.

[Brother]

After trying to sell some vehicles recently, i would say the kbb is about right to very slightly high. The other sources seemed way to high, but I also live in a poor part of the country.

[Steve Carlton]

Most trade-ins are looked at relative to book. How far "back of book" is the magic number. KBB is just a reference point.

If you go to KBB's website here, and get a trade-in value using GOOD conditon, I've seen astonishingly accurate numbers. In a fast-changing market, I'd double check it with the guys who are writing the checks.

[Brother]

Periodically check back to see if it changed. I was selling a car over the model year flip and the value went down when I tried to print out another window sign. In two weeks the same info yielded a 600 buck price reduction.

[JavaBrewer]

Originally posted by Steve Carlton
Most trade-ins are looked at relative to book. How far "back of book" is the magic number. KBB is just a reference point.

If you go to KBB's website here, and get a trade-in value using GOOD conditon, I've seen astonishingly accurate numbers. In a fast-changing market, I'd double check it with the guys who are writing the checks.

My experience has been that car dealerships offer something slightly lower than the KBB POOR condition trade-in value? It can be really insulting if you take it personal. The value add there is the time and money saved in marketing and selling your vehicle privately. SUVs are not exactly flying off the shelves these days.

1973911s - your Denali costs $500/month in gas. How much do you expect to save with the replacement? After you pay sales tax, registration fees, and all that how long will it take to get the money return? If the Denali goes in for a 50mpg hybrid then probably pretty quick however that is a substantial change in vehicle. Good luck!

[Steve Carlton]

Probably common for dealerships to offer less than ACV (actual cash value) as a negotiating tactic. My experience has been that KBB trade-in values for GOOD condition are right on the money compared to ACVs, vs lowballs. Of course trading in is a luxury, and you save the effort of selling. Priced right, a private sale can move pretty quickly, even an SUV. A $3K return for 2-3 weeks time and a few hours effort is worth it to many.

[kaisen]

Any published data has a shelf life and a lead time. KBB is much more accurate than, say, NADA. And it is just an average of all transactions.

It's just like reading today's paper and seeing yesterday's stock 'prices'. Yesterday that stock may have opened at 20 and closed at 25. What price is published in the paper? What does that mean you can buy it for today?

When we buy things, we tend to look at the data and see that someone bought it for $X, which may have been THE lowest price it ever traded for, and use that as our benchmark. The reverse when we are selling.

Remember too, that the true market value is determined ONLY by actual transactions. Not asking prices, not what books or guides say, but by real supply and demand.

SUV's are in huge supply. SUV demand is almost non-existant versus the supply. Many dealers have too many large SUVs in stock. They may already own three 03 Denali XLs, for example. They really don't want yours. How cheap do they have to own yours before it is attractive enough to take their own risk that the market won't slide more?

In the Minneapolis market, a 2003 GMC Yukon Denali XL with normal (40K) miles and normal options (quad seats, moonroof) is really worth about $22K wholesale. KBB trade-in 'good' is $26K.

HERE IS MY TWO CENTS

Don't get rid of it. Do the math again. You only lose money when you sell. I'm sure you bought your Denali XL because it suited a real need that you had, whether it was something you tow, a large and active family, or some other REAL need.

However, most of those types of needs are only occasional. Example, you own a 4000 lb boat. If you own only cars, you can't move the thing, and it is worthless. In order to tow the boat and haul you, your wife, and your four kids, you need a big SUV. But you only need to do it every other weekend.

We'll get back to that in a minute.

If you are getting 13mpg and spending $500/mo and gas is $3/gal, then you are driving 2100-2200 miles/mo. At 30mpg you would pay $215-220/mo in fuel, lowering your fuel bill by $280-285/mo.

At $2.15/gal (filled this AM for $2.129 here is MPLS) you spend $350 in the XL and $150 in the 30mpg car, still saving $200/mo.

Okay, here's the point. If you sell the SUV and take your lumps, how long would it take at $200-280/mo to ammortize that loss? The market on 03 Subs/Yukon XLs/Escalade ESVs has dropped $10,000 in the last year. If we use $10K, it would take you almost 4 years in fuel savings to recover that loss. More relevant to most: Trade it in for $22000, owe $32000, roll that $10000 inequity into the next car on 5 year loan at 5% would be $185/mo for the next 5 years JUST SERVICING THE INEQUITY! Would you do it?

Here's an alternative:

Keep the SUV and use it when you have a need for it. That's why you bought it. Lease or buy a small car to commute and run around solo. So if you still drive 2200 miles/mo, maybe 1500 miles could be in the little car, and 700 in the XL. At $2.50/gal, fuel would run $125 for the 30mpg car, and $135 for the 13mpg XL = $260. Just the XL would cost $425. The almost $200/mo savings may pay for a small car.

Okay, you say, but what about the additional costs of insurance, etc. I remind you of the depreciation savings by NOT driving your Yukon XL those extra 15-18K miles this year.

You can lease a new basic Saturn, Civic, Cobalt, Mazda 3, etc. for around $200/mo for a 3-4 year lease with 15K miles/yr. Or $200/mo is a $10000 used car on a 5 year loan. There are lots of good used cars like that. Better yet, buy a cheaper beater Civic that is no longer depreciating. Whatever, you get the point.

E

[Steve Carlton]

Well stated!

[asphaltgambler]

NADA = Useless info. Since the publication is HEAVILY slanted in favor of the dealer (see: National Automotive Dealer Assc) the only good thing is you can use it as reference when private selling.

As in: 'NADA lists this vehicle @$XXXXX - I'm selling for for less @$XXXX'

[86 911]

A friend of mine a few years back said that KBB was a dishonest place to get values for your vehicle. I use Edmunds instead to look up car values:
http://www.edmunds.com/

[nostatic]

I've been trying to sell the 4-runner for a week or two and no bites. But this one isn't a gas hog...20+ mpg, '96, 4cyl, 5spd, 2wd. No action at $5250. KBB price is higher than that...

[kaisen]

Nostatic-

You might want to advertise your 10 year old 4Runner at $49XX so that it shows up in the search function for under $5000. Might make all the difference for that buyer. Just a suggestion.

E

[Steve Carlton]

What does KKB say for your 4-skinner for trade-in GOOD or POOR, based on its relative condition?

I can tell you, the market for 4-cyl, 5-spd 2WDs always has a lot less buyers. Does it need anything? The value of reconditioning has to be factored in. How many miles? Are you buying anything new? Perhaps a dealer will pay too much for it? Also, try craigslist.org with pictures. I've had great results there.

[nostatic]

KBB is $5600 medium price. Not trading in...just selling. Doesn't need anything, and in fact just had tranny work. 137K miles and original owner which should make it a bit more desirable (or not). Good idea about the $4950. I did craigslist, but will do another. I was trying to avoid paying to put it on autotrader or ebay...

[Steve Carlton]

I judge selling prices as relative to their trade-in values. Maybe I missed some options for your 4Runner, but if I did, they wouldn't add much. At $2,315, I'd expect to see $3,500-4,000. I usually price stuff higher than the most I'd expect to get; you might get lucky, but most buyers aren't going to be satisfied unless you come down some. I'd price it at $4,200 and have a smog cert in hand. Just my ...