When I bought my 2017 F150 I had every intention of "driving it into the ground", but in the last 14 months I have spent a lot of time at the dealership having warranty issues addressed and I'm starting to seriously consider trading this truck in on a new (less-Platinum-y) one. I've had a misaligned tailgate that caused the paint to be rubbed off one corner, misaligned doors that shake over rough roads, and a loose seat track. The dealership scratched my truck severely enough during one visit that the bed was shifted off-center, then the body shop cut through my Line-X to access the bed bolts to fix the damaged bed. Then there was the oil pan leak, and I currently have a rattling moonroof and round 2 of the leaking oil pan. That being said, this post isn't meant to complain about my truck. I'd like to get rid of it before these issues become my responsibility, but I'm not necessarily willing to get hosed on it.

What is your strategy when negotiating a trade-in? I've looked up my numbers on KBB - the "trade-in value" numbers are pretty disappointing. What number do you all typically start with?

 

 

I just traded in my 2015 Screw XLT 302A with 34000 miles for $27000, the dealer is trying to sell it for $29,999. KBB told me around $27K for trade-in, however the dealership originally came back and said $23 and brought out "comparable" models for mine that were selling locally and tried to say they need to make money too because they were around 23K. After reviewing their "comps" they werent even close to being the same truck, base XLT with the non-eco V6 for $24K and then the one they did bring was a 301A and that was being asked for $26K.

Long story short, do your research and know what your truck is worth, but don't be unreasonable. See if you can find an identical model with roughly same mileage selling locally and use that as a good starting point, in the end my dealer sold a truck and will make about 2K on mine.

 

Who knows what is bull**** now a days, but I've been told by multiple dealerships they don't even consider KBB anymore. The dealership I got my truck from actually showed me the interface they used. It was some wholesale price calculator that had about 50 fields in it for vehicle info learned from inspection. Surprised me that they would bother taking the time to fill it it out, tbh.

My strategy didn't include figuring out a target price for the truck or the trade. I looked up the true car average (kind of a pain to deal with all the different rebate programs, but it will get you close to a good value, shoot for the low end though) then I subtracted the low end of the private value of my trade. What I came up with is what I stuck with in negotiations (in terms of what I could pay, I actually told them I didn't care how they wanted to work the math and an extra dollar in rebate is no different than an extra dollar in trade). At first we were something like $7K off from each other. I told him that sounded like way to much ground to cover and thanked him for his time. Sales manager caught me on the way out, said he wanted to work with me. Came down to $1500 over my number (after an hour or so). Didn't notice at first, but the dealership was negotiating "out the door" value (including tax, tag, title) at the actual value of the trunk was about $100 off what I had set.

On the sales sheet, they gave me $1000 less than private sale value on the trade (was more than GM had offered on it on a private buy back deal, though) and there was some dealership specific rebate to make up the difference (just shy of $14K in rebates).

Can't say this strategy will ever work again. But if you go in expecting to dictate the negotiation, they'll certainly be resistant. Try shooting for a final goal and let them make up how to get there.

 

Another good reference point is carmax if you have one near by. I always get a purchase offer from carmax to set the "floor" since it's hard for a dealer to offer any lower compared to carmax. I've had a couple dealers say "carmax is always high", which is a joke and a good reason to walk down the road. A selling dealer should have more motivation than carmax to give a good trade number since they are already making $ on the new truck as well.

Another option that I used on my last new truck is to find a private buyer and do a "pass through" on the sale through the dealer where you are buying the new truck. This allows you to get "private sale" money, but still get the tax savings because it can be transacted as a trade (at least in Texas). Win/win/win for dealer, buyer of used truck, and you. Dealer doesn't make anything but doc fees on the used truck (can also make $ on financing or add-on options), but it's a great way to make their customer happy and make a deal happen. Buyer of the used truck likes it because there is some protection from scams/title issues from buying through dealer, but they don't have to pay retail. The only trick is the timing and obviously having to find a buyer. If you price on the low end of private sale values on KBB/NADA and you have a desirable truck, it will sell quick. I sold my 2011 in 3 days on Craigslist, there are always people looking for clean trucks at good prices.

 

if you buy them "right " you can do ok. for me 2 -3 years is usually 2k per year depreciation. so that's pretty cheap for always having a new truck. I never buy tires, brakes, always have a warranty, etc. The first year is the steepest on the depreciation curve...
of course the most financially responsible is to keep it forever...

 

I have always gone with the idea that if I expect to buy at the lowest price then I can expect the dealer to give me the lowest trade in value as well. That being said, Last Nov I traded in my 14 eco with around 94,000 on it for a new 17 5.0 screw XLT sport pkg. I used costcoauto.com for the pricing and then took off all the discounts on top of that. MSRP was a little over $49000 and I paid $37,900 out the door, tax license, title etc. But because I paid the lowest price they gave me squat for my eco on trade in. Just be smart do your research on the numbers shop around and after you buy whatever you buy, don't ever go back and look at sale adds for your truck you bought, ever. If you do you will end up in therapy.

 

Why would you not just private sell it? I've traded in a car once in my life and that was enough to know I'll never do it again. You know the reasons why it's not a good idea - you are going to get hosed no matter what, you will get more from a private sale. I look at the ability to trade as something that is quick and easy, but by being quick and easy you pay dearly.

Looking back to my trade, I had a 2004 accord with 11k miles on it. Traded on a tundra. Dealer offered me 16,700 for it. I begged to get it up to 19,900 knowing they would sell it for 20,500. They gave me my 19,900, barely budged on the tundra price and put my car on the lot for 20,500 after two days. Trading is easy and fast because it's horrible financially. Wanted to respond because I'm closing in on a deal for a 2018 Lariat and I have a vehicle I have to do something with. In two days that vehicle will be on craigslist after visiting carmax.

 

I understand why a trade-in isn't as financially beneficial as a private sale. My question was about how to approach the dealership and negotiate the value. Do I start with KBB trade-in? Or do I consider KBB Private Sale my ultimate target and work down? Do I bring up all of the issues I've had with the truck over the past year and how many times it has been in the shop, hoping to remind them that this transaction would get this truck out of their service dept? I'm just looking for advice and tactics to use to get the best deal from the situation.

 

If you're set on trading, there really is no strategy I'm aware of. It will complicate the purchase of the vehicle you're buying (if from that same dealership). They are going to give you what they are going to give you and if you are too interested in the price of the trade, they may give you more only to take it away from the discount on the new truck.
Also why would they want the truck out of their service department? I believe they are getting compensated by FMC for fixing it. Maybe someone else will have more of a strategy, but it's kinda like asking what's the best way to die...some ways are quicker and less painful, but in the end you're still dead. The best deal is to avoid trading all together.