Trade-In Process / Experience?

[Dark-Fx]

You should almost never trade in a used vehicle on a new one, money wise. The only reason to do it is if you don't want to deal with any of the alternatives.

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[r1t_kev]

I bet Rivian will NOT negotiate on trade in values. I think take-it-or-leave-it will be their stance.

As is pretty customary in the current inventory environment.

 

[astonius]

If you're in a state that nets trade value it is crucial to factor this benefit in to your trade vs sell decision. The break-even line is trade quote * 1.n where "n" is your state + local sales tax percentage on vehicles.

TN example
Quoted trade value: $50,000
Private party value: $55,000
Actual trade value: $50,000 * 1.07 = $53,500

In this example I'm netting $1,500 if I sell privately, not $5,000.

If the net is zero you'd be crazy not to trade (unless you just want to keep your car of course).

It then comes down to how much you value your time and energy with finding a reliable buyer and timing their purchase around your delivery, and that valuation is a big difference between $5k and $1.5k.

Then there are some states that have very favorable laws regarding trade credit. I used to live in Arkansas, and there you could sell a vehicle privately either 45 days before or 45 days after a new purchase and use the sale price as a trade difference. That was the best of both worlds as you could get the higher private party valuation combined with the tax benefit. Make sure you know your state and local laws.

 

[Rousie13]

You should almost never trade in a used vehicle on a new one, money wise. The only reason to do it is if you don't want to deal with any of the alternatives.

I’d have to disagree with this statement. I traded in my Tesla on my current XC40 Recharge and they offered me more for trade than Carvana offered plus I got $3500 in tax savings. I drove it to the dealer and drove away in my new vehicle.

I traded in my JLUR on my Tesla and they offered me more than Carvana, plus I got the tax savings on top of that.

We traded my wife’s CR-V on my wife’s XC40 Recharge and we negotiated with the dealer to match Carvana’s offer after you factored in the tax savings.

There are many other examples where we traded in our vehicles and didn’t regret it in the least. We don’t have to deal with tire kickers, letting lots of people drive our vehicles, etc.

 

[Dark-Fx]

I’d have to disagree with this statement. I traded in my Tesla on my current XC40 Recharge and they offered me more for trade than Carvana offered plus I got $3500 in tax savings. I drove it to the dealer and drove away in my new vehicle.

I traded in my JLUR on my Tesla and they offered me more than Carvana, plus I got the tax savings on top of that.

We traded my wife’s CR-V on my wife’s XC40 Recharge and we negotiated with the dealer to match Carvana’s offer after you factored in the tax savings.

There are many other examples where we traded in our vehicles and didn’t regret it in the least. We don’t have to deal with tire kickers, letting lots of people drive our vehicles, etc.

Carvana is still a trade-in service. You aren't selling to a private entity.

 

[mgc0216]

I’d have to disagree with this statement. I traded in my Tesla on my current XC40 Recharge and they offered me more for trade than Carvana offered plus I got $3500 in tax savings. I drove it to the dealer and drove away in my new vehicle.

I traded in my JLUR on my Tesla and they offered me more than Carvana, plus I got the tax savings on top of that.

We traded my wife’s CR-V on my wife’s XC40 Recharge and we negotiated with the dealer to match Carvana’s offer after you factored in the tax savings.

There are many other examples where we traded in our vehicles and didn’t regret it in the least. We don’t have to deal with tire kickers, letting lots of people drive our vehicles, etc.

You literally just made his point for him: You didn't want to deal with selling it yourself.

 

[lostpacket]

One thing I am curious about is how does the 7 day return policy work w/ a trade in, havent yet seen any info on this but I may have missed it. Anyone heard/seen anything?

 

[Taycanfrank]

One thing I am curious about is how does the 7 day return policy work w/ a trade in, havent yet seen any info on this but I may have missed it. Anyone heard/seen anything?

The 7-day return policy is a trick. You still pay all taxes, registration, sales fees, etc.. they just refund you the base MSRP of the vehicle. You'd always just sell it instead.

As for trading in vs privately selling, the sales tax credit often makes up the difference vs privately selling and it's an easier, more risk free process. This may or may not be the case with Rivian's process, however. Dealerships will typically work with you on an attractive trade in offer.

 

[lostpacket]

The 7-day return policy is a trick. You still pay all taxes, registration, sales fees, etc.. they just refund you the base MSRP of the vehicle. You'd always just sell it instead.

Wait, they keep taxes? How does that work? Registration and fees I get but taxes surprises me.

 

[Scoiatael]

I just hope its better than Tesla's trade in process. What they offer for trade ins is laughable. I'm probably going to use Carvana or Vroom to sell my Model Y as my delivery date gets closer and people with delivery dates before me start getting deliveries instead of delays.

 

[OEVA]

Reality dictates that companies like Rivian and Tesla that don't sell used cars have to buy below wholesale.
They take/ship them to an auction where they get wholesale prices relevant at that moment based on the buyers buying and what other inventory has/will be available that day at the auction.
A book or guide published even a week before doesn't dictate price - the buyers and sellers at the auction do that.
Manufacturers tend to be conservative on their offers (for good reason).
You will always be able to sell somewhere else, even at wholesale to a reseller, for more than you will likely get offered as a trade. It is less convenient than trading, but each individual will need to evaluate how much that convenience is worth. The availability of resellers like Vroom, Carvanna, CarMax, that are actively looking for vehicles to sell themselves (not send to auction) are probably the best value in time/convenience versus money for most sellers. They know when a vehicle may be more desirable in a different geographical market and their offer will reflect that since they offer vehicles to essentially anyone anywhere.
In States where trade ins offset the purchase price for sales tax calculations, the math changes for the customer, but not for a Rivian/Tesla that must buy your trade at below wholesale in order not to lose money at the auction.

 

[crashmtb]

Wait, they keep taxes? How does that work? Registration and fees I get but taxes surprises me.

presumably would have to apply to state or whoever taxes are remitted to for a rebate on those.

 

[CommodoreAmiga]

presumably would have to apply to state or whoever taxes are remitted to for a rebate on those.

This would also be highly dependent on which state you're in... Some may allow a credit/rebate/refund if the vehicle was owned for a limited period of time. Others will not and you may be responsible for the full bill, even if you only had the vehicle for a day.

 

[RideAlong]

You will get offered a value that will allow Rivian to sell it at a small profit to someone else who will sell it at a bigger profit on the retail market.

correct.

 

[carcrazydoc]

I am very curious to see how close Rivian's actual trade in offers will be to www.kbb.com trade-in values as KBB is owned by Cox Automotive which is the company handling the trade-ins for Rivian. Also curious if everything will be "good" or if they will actually evaluate the level of condition. Hopefully we will get some posts from real world examples of trade-ins to Rivian/Cox Automotive.

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