Trade In Process and Value?

[NashvilleR1S]

Hey I wanted to get a consolidated thread of how everyone's trade in process went.

What was the timing like pre delivery?

How was the value vs kbb?

With used prices right now I'm sure I can get a lot more on the market for my 4runner than trade in, but i'm not sure I'll be able to juggle the timing of that with payment/financing.

Thanks!

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[KiloV]

I traded in a 2017 Honda Ridgeline with ~69K miles on it, in very good condition. Rivian offered pretty much exactly the same as Carmax, and right about what KBB projected as well. I'm sure I could've gotten somewhat more in a private sale, but it wasn't worth the trouble to me. Rivian showed up with my R1T and drove off in my Ridgeline; no trouble at all.

 

[kneebuster]

Another thing to think about, dependent on the state you live in and the value of the trade, is it might reduce your sales tax liability. That wouldn't be true with a private party sale. In my case that'd be several thousand $$$. If they give me anything close to KBB price it wouldn't likely be worth the private sale hassle. Hoping to know in the next few weeks.

 

[DaveA]

Rivian, Carvana, and Vroom were all wayyyy under trade in value on KBB. What I did was use KBB instant cash buyer....got a super lowball price from them, but then had 3 dealers contact me and they offered way more....kinda just playing them off each other.

 

[NashvilleR1S]

Another thing to think about, dependent on the state you live in and the value of the trade, is it might reduce your sales tax liability. That wouldn't be true with a private party sale. In my case that'd be several thousand $$$. If they give me anything close to KBB price it wouldn't likely be worth the private sale hassle. Hoping to know in the next few weeks.

Totally and I've thought about that.

Trade in value for my 4runner is $28k. Prices online are going for around $35k for similar and mine has more aftermarket upgrades.

Sales tax in TN on 80k is $5688. Minus a 28k trade in, taxes are $3728. So trading in saves me $1900 in taxes.

Tax savings of $1900 vs an additional $7000 in private party sales seems worth the extra headache to me.

 

[KeithPleas]

...and mine has more aftermarket upgrades.

A private sale is the only way to - potentially - recover upgrades - short of putting the vehicle back to stock and flogging the upgrades separately.

 

[trez63]

So how do they decide on the trade-in condition?
I have a 2020 Gladiator with 24k miles which is in excellent condition with the exception of one scratch on the driver door. I put my condition down as excellent but I know that's a bit cheeky so how will that play out? Will they just change the offer on my last minute? When do they verify the condition and how long will this delay my pickup time?

 

[ironpig]

I have two cars that we are selling this year. A model S and a Toyota 4Runner. In California the trade in doesn’t decrease the purchase price for taxes so I’m selling one or both private party. I might see what Rivian offers in case it’s comparable and makes my life easier, but it’s unlikely they will offer current market value for either of these cars.

 

[Bee]

Words that may come back to haunt me:

I would never expect Rivian or any other auto manufacturer, ever, to not offer you a fair price for the trade. I mean, pending dealer shenanigans obviously but in general they have a tremendous interest in ensuring that they both profit off the car you're trading in and ensure the sale happens which is contingent on the trade.

Obviously Rivian isn't looking to push used car inventory as much as a traditional auto manufacturer's dealer network but it's still an easy to dump commodity they're likely making relatively significant money off of as well as ensuring you don't run to Ford or GM's hands and their trucks.

What's the alternative? "Sorry, go sell your current car on the open market, we won't help you finance the negative equity, you deal with all the paper work and time spent, I don't care that you're going to lose the state sales tax benefit then come back and we'll sell you a car."

Gotta admit, ^ that sounds dumb and obviously would sink most deals. Even Tesla was taking in trades at fair auction value before they had any competition.

 

[Joints4Sale]

So how do they decide on the trade-in condition?
I have a 2020 Gladiator with 24k miles which is in excellent condition with the exception of one scratch on the driver door. I put my condition down as excellent but I know that's a bit cheeky so how will that play out? Will they just change the offer on my last minute? When do they verify the condition and how long will this delay my pickup time?

I traded in my 2019 Ram 2500 with 44,000 miles. I marked my trade in as "Very Good" because it had a couple of minor scratches. My Ram had two front end collisions that I'm sure show up on carfax. They gave me $68,000(KBB trade in is $69k) for it which reduced my tax liability by $4,000. In my case the difference between Very Good and Excellent was about $2000. I didn't want to push my luck with the two previous accidents. I suggest marking the highest condition you are comfortable with and let them prove otherwise.

As far as timing goes, I submitted my trade info(Step 2 of 8) the day before delivery. I had decided that if they were within the delta for the sales tax benefit that I would trade it in.

BTW, I paid $67,000 for it back in 2019 when it was a brand new.

 

[NashvilleR1S]

I have two cars that we are selling this year. A model S and a Toyota 4Runner. In California the trade in doesn’t decrease the purchase price for taxes so I’m selling one or both private party. I might see what Rivian offers in case it’s comparable and makes my life easier, but it’s unlikely they will offer current market value for either of these cars.

Let me know what you get for your 4runner!

 

[Dark-Fx]

Offer was lower than expected on our Volt. Decided to try to go private party instead. Sure it's a 3 year old car, but it only has 15,000 miles on it and everything is in really good shape still. It's also pretty rare because it's got the upgraded 7.2kW charger onboard.

 

[NoICE]

I traded in my Tesla Model 3 at slightly better than KBB. Super easy process with no surprises. Rivian handles the paperwork and I save on sales tax. Maybe a private sale would have yielded more, but doubt enough to offset the sales tax savings and hassle.

 

[Eager2own]

I first got a quote from Carvana for a trade-in of my 2021 Mazda MX-5. I didn’t like the number and was sure I’d be doing a private sale.
However, Rivian offered me $2k more than Carvana. Using the MX-5 as a trade-in saves me $1,975 in sales tax for the reasons others have explained. I don’t think I can sell privately the MX-5 for $1,975 more than Rivian offered, so I am going the trade-in route.

By the way, the process is very easy and quick. It’s a very basic form, and you get feedback immediately or within a couple business hours. Mine took a while to get confirmed because I submitted Saturday morning, so I had to wait until Monday 11 am CST or so.

 

[Dr. Byrd]

I'm sure this will vary by state, but in Missouri, if you sell your vehicle in a private sale within 180 days before or after buying another, you can file for a refund on the sales tax. In other words, the same as trading it. No idea how efficient the process is or how long it takes to get your money, but it's worth looking into at least.

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