I’ve been considering trading in my 2006 Ford Explorer for something a little easier on the gas and on the wallet. I swung by a local dealership to look at potential replacements and started talking to the salesman about the value of my trade. I had done some research on KBB and Cars.com for what my trade in value could be, but the salesman told me that bc my car has over 100k miles (its got 103,000), I’d only get the auction value. So I’ve got two questions:
a) Was he yanking my chain, or is that reasonable to believe.
b) How much a difference should i expect from the KBB Value? Can i look up auction values somewhere?
You may get more by selling your truck privately through Craigslist or a classified ad, especially if it is in good condition and you have maintenance records.
A used Explorer is not a high-demand vehicle. In fact, if memory serves it was the vehicle most often traded in as “Cash-for-Clunkers”. In other words, the dealer does not want it and will send it to auction. Therefore, the salesman’s value is likely reasonable.
Millions of people are looking for “something a little easier on the gas and on the wallet”. Very few are looking for large SUV’s. Supply and demand economics 101.
Yep, could be hard to get much. But rule #1 in buying a new car - keep the trade-in out of it, negotiate the new car price, then talk trade. Otherwise the whole deal get confusing.
Yes, you can find sales prices under ‘completed items’ on Ebaymotors. Looks like 2006 Explorers with 90k miles or more get bid to $7,000-$8,000, maybe a little more. How’s that compare to what you were expecting?
Great advice. The new car purchase and the trade are 2 separate transactions. On that note, negotiate on total price bottom line, not the monthly payment.
Try this site.
Click on “Trade In Your Car”
Fill in the questions. It will give you an up to date value of your car. There’s a section for personal information. Just type in dummy info if you don’t want them to know your real name and e-mail.
Sounds like i need to hope it gets hit by a plow in Boston. KBB was saying 11-13k, i was thinking 9-10k was reasonable. 7-8 is lower than I was hoping for.
Your going to do best selling it privately
Edmunds says the price reduction for 103,000 is $1689. NADA suggest the price drop is $1350. KBB doesn’t break it down. The price drops are for both private sales and trade-ins. Since the salesman didn’t tell you a price, it’s hard to judge. If you tell us what options, the condition and what trim level, we can get a better idea of the value. Or you can look it up on Edmunds or NADA yourself. If the truck doesn’t need much work, you will do much better selling it yourself. Even if you advertise in a local paper, the difference could be well over $1000 between trading and selling it yourself.
You will always get more selling your vehicle outright than trading it in. Other considerations:
- Do you owe money on it, and if so, are you under water?
- Do you want to deal with the hassles of advertising it, showing it and selling it?
- If you trade it in, you will pay sales tax (in most states) on the difference – something to consider.
- 100,000 is a psychological mileage point for a lot of buyers, where it’s real or imagined, and makes selling it more difficult.
- Your motivation to get a different vehicle is gas mileage. Keep in mind cost of fuel is just one part of total per-mile cost. Depreciation, taxes, insurance can out weigh the saving in getting a few more MPG. Keeping your vehicle may actually be less expensive.
Twotone
When I was car shopping last February, the sleazy dealer offered me $800 for a 2000 Blazer in good condition with 109000 miles. The reputable dealer offered $1300 for the Blazer. I believe KBB was around $3500 at the time. I decided to keep the Blazer and bought a 2010 Cobalt from the reputable dealership.
With gas prices going up continously and the high mileage on your Explorer, don’t expect much for a trade. Try a couple of dealers, but expect to be disappointed. You would be better off selling it privately.
Ed B.
The dealer isn’t going to keep your car for sale on their used car lot due to the high mileage. That means they will send it to auction and take whatever it brings less the auction fee’s and commission. He is giving you a low ball offer for trade in.
If you want more you need to sell the Explorer privately and then you’ll know what kind of money you have for a new car.
The edmunds site above was a good help. My Explorer is a V8 EB, fully loaded with the exception of navigation. Edmunds is saying $13,533 for model + features, - $1720 for mileage (put in 105k, assuming i wont sell it in the next day or two), and between 0 and $2,300 in wear and tear and mechanical repairs. So I end up with a total between $9,500 and $11,800.
to answer the question above:
- Depends on what i get as a trade-in value
- Nope
- Understood
- Agreed
- Thats one motivation, but not the only.
I drive 20k-25k a year, mostly for work. I work in construction, so i need the ability to turn off of paved roads and handle some minor off-roading. I want a car that i can get a solid 5-6 years out of, if not more. I bought the explorer with 30k on it, am at 103,000 after 3 years, and the truck has been living up to it’s (F)ix (O)r ®epair (D)aily namesake. Every time i pick it up from one shop visit, something else is acting funny or making a noise. Part of me is ready to cut my losses rather than waiting for something major to go wrong.