Granger Ford – Trade in Guide

[Granger Ford]

I have been asked this question numerous times, so I decided to make a post all its own, so it does not get lost in the thread jungle.

I will be using 3 scenarios as they have played out here on the Forum.

For the base line I will be using a trade in that has:

• KBB retail value of $12,500
• KBB trade value of $10,000
• a wholesale (ACV) of $8,500

For the baseline vehicle I will use the Ranger: attached invoice.

• $45,115 - MSRP – window sticker
• $43,304 - Invoice
• $43,406 - X-Plan

• Dealer A - Full retail MSRP no discounts
• Dealer B - X Plan pricing
• Dealer C - Granger Ford example
  • $1000 under invoice
  • $1300 under invoice with x plan

	Dealer A​	Dealer C​	Dealer B​	Dealer C​
		* $1,000 under invoice​		* $1,300 under invoice​
​ Sale Price​	45,115​	42,304​	43,406​	42,004​
Trade "value"	10,500​	8,500​	8,500​	8,500​
Trade Difference	34,615​	33,804​	34,906​	33,504​

As you can see in the example (simplistic for sure) that your main concern should not be the trade in “value” but the trade difference as that is what you pay for the vehicle less your trade in..

To equal Dealer C’s price:

• Dealer A would need to “show” a trade value of $11,311 for the same deal as Dealer C $1000 under
• Dealer B would need to “show” a trade value of $ 9,902 for the same deal as Dealer C $1,300 under.

	Dealer A​	Dealer C​	Dealer B​	Dealer C​
		* $1,000 under invoice​		* $1,300 under invoice​
Sale Price	45,115​	42,304​	43,406​	42,004​
Trade "value"	11,311​	8,500​	9,902​	8,500​
Trade Difference	33,804​	33,804​	33,504​	33,504​

Therefore, I say that there are 2 transaction when trading in a vehicle and buying another.

We are selling you one and you are selling us one...

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[BroncoJay]

Awesome information Albert once again!
Thank you

 

[pan-y-cerveza]

Good info.

Who are these baller people with the fancy trade-ins? I just check the KBB for my "good" vehicle. Trade in value of.....$700

 

[Squatch]

I'm not sure how you're getting away with posting so much useful information. Don't you know this is an internet forum?

* From the title and previous crazy threads, I thought someone was trying to ask you if they could trade in their car that only had primer on it.

 

[Granger Ford]

* From the title and previous crazy threads, I thought someone was trying to ask you if they could trade in their car that only had primer on it.

I have seen worse...had a customer trade a conversion van in that smelled awful, found that they had left some "groceries" under the rear seat and around 5 mice ran out when it was lifted up...

Yup I was scared, as a much younger man had those furry critters run up my pant legs while cleaning out a grain bin, did not want relive that lovely experience again..?

 

[joshofthefall]

Good info.

Who are these baller people with the fancy trade-ins? I just check the KBB for my "good" vehicle. Trade in value of.....$700

Lol! Don't remind me, just double checked mine, average of $1600 trade-in for me.

 

[cal jammer]

this is why I'm going to sell my car to a private party before my Bronco comes in. get the best of both and put more down.

 

[LemonShark]

Good info.

Who are these baller people with the fancy trade-ins? I just check the KBB for my "good" vehicle. Trade in value of.....$700

My trade-in value is around 37k. At first you're thinking, "Ahhh, this douche bag bragging about his 'baller' trade-in value. Get out of here!"

But, if you knew how much value my car, with less than 10k miles and completely perfect, had lost in value in 2 years, you'd look at your 700 bucks a whole lot different.

No trade-in for me!

 

[Bullitt]

Once again, Granger Ford building trust and earning business. Mad respect for you Albert!

 

[Broncolli]

How do you account for taxes? If we pay more for the new vehicle - say 43k we pay taxes on that vs paying at invoice. Taxes are already paid for on the trade-in vehicle -

 

[pan-y-cerveza]

My trade-in value is around 37k. At first you're thinking, "Ahhh, this douche bag bragging about his 'baller' trade-in value. Get out of here!"

But, if you knew how much value my car, with less than 10k miles and completely perfect, had lost in value in 2 years, you'd look at your 700 bucks a whole lot different.

No trade-in for me!

You know I was joking and don't actually care about anyone's (including my own) trade-in value is, right?

I'm not even sure what this post means other than a humble-brag. Ha

 

[Granger Ford]

Once again, Granger Ford building trust and earning business. Mad respect for you Albert!

Thank you..

 

[Granger Ford]

How do you account for taxes? If we pay more for the new vehicle - say 43k we pay taxes on that vs paying at invoice. Taxes are already paid for on the trade-in vehicle -

I can only speak for Iowa residents here, but we pay taxes on the difference and get plate credit towards the new vehicle..

 

[EvlNvrDys]

I can only speak for Iowa residents here, but we pay taxes on the difference and get plate credit towards the new vehicle..

Pretty much how NJ works...
Let's say vehicle sells for $30k- $15k (trade in) = $15k gets taxed by our wonderful guvment (yeah that's my hooked on phonics spelling for government, who we absolutely love out here in NJ because they tax the shit out of us!)
Best part is when you buy a used vehicle (which was already taxed at original sale) and get to pay full taxes on it.
Or if you buy used privately and pay 'X' amount, then NJ sends you a bill for 'Y' amount because they say your vehicle is worth more than what you 'claim' to have paid for it.

Ok, back to your original programming, I'm done with my rant now

 

[LemonShark]

You know I was joking and don't actually care about anyone's (including my own) trade-in value is, right?

I'm not even sure what this post means other than a humble-brag. Ha

You were joking? I don't have a sense of humor. In fact, I can barely read, which is why I made a piss-poor financial decision two years ago, and I promise I ain't bragging about it.

I'm also pretty sure I can't humble-brag about spending my wife's money (the wife part might be a humble brag).

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