2016 200 series LC trade in Value - Fair or no?

[Angelo1]

Thinking of trading in my 2016 for a heritage edition LC and riding out the last year model. Paying a premium for the LC and wondering if I am getting a fair deal on my trade.
- My truck is perfect
- New Tires
- No saltwater contact
- All service kept up on
- 44k miles

Dealer giving me 51k for trade-in value.

Is this a fair number?

Sell it private party! I just looked for an LC within 500mi. from my house 2016 Toyota Land Cruiser for Sale in Knoxville, TN - CarGurus - https://www.cargurus.com/Cars/inventorylisting/viewDetailsFilterViewInventoryListing.action?zip=37922&showNegotiable=true&sortDir=ASC&sourceContext=cargurusTM&distance=500&entitySelectingHelper.selectedEntity2=c25240&sortType=DEAL_SCORE&entitySelectingHelper.selectedEntity=c25240

 

[spazzyfry123]

Definitely depends on location. If you could find a pristine 2016 with 66k miles at a dealership for $53k in my neck of the woods, that would be considered a fantastic steal. Here, the dealer would sell that for closer to $60k, maybe even slightly higher.

Don’t get me wrong, it took a little doing and I snatched it up the day it was listed and I traveled to pick it up, but are book values that drastic between regions?

Regardless, I would have rather had a Heritage!

 

[luke27617]

Trade in value is not bad but all depends how much you are paying for new. Someone made comment to sell privately. Dealers are paying top dollar right now and often better then private. As well while selling to dealer you don't pay tax on the difference.

 

[Tex68w]

Yep, like I said initially, location/region play a large factor in pricing. There's no way in hell you'd find that vehicle for less than $59K at a dealer in this area.

 

[txtortoise]

Post or PM the VIN and I'll give you the auction value, which is essentially what a trade-in value usually is, though higher values can be buried in the sales price of the new vehicle.

But in your case a Carmax, auction or similar will tell you the least the dealer will get for the truck...but he'd be nuts to send it to auction. You could also sell here:

1999 Toyota Land Cruiser - California-Kept, Locking Rear Differential, Some Modifications

This 1999 Toyota Land Cruiser is for sale on Cars & Bids! Auction ends February 12 2021.

carsandbids.com

Some crazy values, but at the moment, that's the market.

 

[RT Cruiser]

I worked as a car salesman long time ago. Though it was only for a short period of time, it opened the door to how the game really works at dealers. My hunch is the used car manager is looking at your rig and knows confidently he/she will sell it for $65k-$70k. With your car the only thing they have to do is fill it up with gas, give it a cheap wax, then park it where everyone can see it. It's EASY money for them. E.A.S.Y. They picked up on a vibe from you that you'll do the deal at that price point.

Look at Edmunds and KBB to find a ballpark range of what your vehicle is worth in the city where you are going to sell it or trade it in. Remember, what something is worth is the amount someone is willing to exchange money for. A 2020 Ford F150 someone bought at $40k with decent miles and well kept may be advertised for $33k. But in the real world it'll only get about $28 because there's so many available.

Now that you have broached the subject with the dealer "what is my car worth" then I recommend you avoid the topic and focus on the new one. Let them bring up the subject again about your trade-in. When they do, say something like, "we need about 60-70 because it's in phenomenal shape. All you guys need to do is fill it up with gas and put it out where everyone can see it." When talking about the one you are trading in, don't use the word "dollars" or "thousands." Just say "60-70." Tell them how easy it will be for them to sell it. If you can wait till Monday, then go Monday. Fri-Sat are the worst days for the consumer to buy a vehicle at a dealer.

Never be mean, nor rude, nor condescending. As Patrick Swayze said in Road House, "Be nice." Be firm, but be nice. It's all a game. If they really need to make the deal happen, if you politely poke here and there you'll find their weakness. The other part of this reality is some sales people are lazy and arrogant. They don't care if you walk away. They stick to the mantra that buyers need them.

And regarding taxes, states/cities/counties are different. The city or county where you reside from which you obtain the license plate determines this. You should call the governing body and verify this before you do the deal, especially if the dealer is out of state. I recommend you call the city/county and verify.

When buying a vehicle from a dealer, it's always about the final price. If they think you want more for your trade-in and they need the deal, then they'll give you what you want on your trade-in then they'll either not come down much on the new vehicle price, or sell you an extended warranty at full price, or sell you OEM add-ons that are way-too-expensive, or a combo of these things. One of the best ways they make money is through their financing office. In some deals the dealer makes money if you use one of their preferred lenders even if it's the same rate as the one you want to use. The dealer will get a legal kickback from the lender. Sometimes you may qualify for, example 2.75% on a purchase, but you don't know this because you didn't do your due diligence. When you finalize the price and the finance manager finds out you didn't do your due diligence, he/she is going to offer you 3.25% and tell you it's the best rate. Dealers make a lot of money from financing. When we got our '08, we had a lender lined up. The dealer offered us the same rate with one of their preferred lenders. We agreed because we knew it would make the deal go faster plus it made it easier for them to say yes to the price we wanted.

"Trading-in" a vehicle for another one at a dealership will always benefit the dealer. The customer never comes out ahead. It may not be an easy effort for someone to sell their vehicle by their own means, but financially it's more than worth the effort. I recommend for people to never trade in a car - especially your vehicle.

I'm sure you're busy but I recommend you slow down the process. Let me know if you need to chat by phone.

 

[4wheelgreg]

If its in nice shape as my fellow car sales guy said 65 to 70 retail on a lot especially if your trading at the same manufacture , I bought and sold cars on the side after leaving the car business , I would also buy and sell at the auctions , any LC in clean condition allways sold well at the auction , had to check them out really well , this was before car fax and being able to run the Vin , even with a clean title there was a reason a nice LC was running and not on a lot .
I would 57 + trade might not be bad if all they have to do is clean it and list it , I think your leaving money on the table at 54k

 

[CharlieS]

Trade in value is not bad but all depends how much you are paying for new. Someone made comment to sell privately. Dealers are paying top dollar right now and often better then private. As well while selling to dealer you don't pay tax on the difference.

If dealers are paying more than private sale, this is the first time in my life that is the case. Do you have any data to support that assertion?

 

[samster747]

It's common knowledge that dealers make money primarily on used car sales, service, and parts. They're trying to maximize their profit on your used LC. They will obviously try to stay near bottom dollar. You have to decide what is it worth to you in terms of time, convenience, hassle, etc of waiting and selling on your own.

Best thing to do is negotiate your new HE purchase. Get it in writing first. Then proceed to negotiate trade in. They will give you the lame excuse that because you're saving x amount on the new one, we can only do this price on your trade. That's pure BS. One has nothing to do with the other. They are separate entities. The argument that they have to save money on trade because they gave you a great price on new one is purely BS.

I suggest you do the math on tax savings of trade in versus outright selling on your own. That's what I usually do when buying new and selling my used. You can figure out the exact break even number between the trading in with tax savings versus selling on your own for maximum dollar. Usually if they come within a few hundred dollars, then I'll do the trade and not deal with the hassle of trying to sell on my own. On my last new car purchase, dealer came close to my break even number. I was out about $500 dollars versus selling on my own. Dealers know the number.....trust me. You have to ask yourself, how much are you willing to lose to not deal with the work of selling on your own. Key thing is to get your new purchase as low as you can.....and not having them (the dealer) let that be a major factor in your trade in value. Best of luck!

 

[luke27617]

If dealers are paying more than private sale, this is the first time in my life that is the case. Do you have any data to support that assertion?

Actually dealers are struggling to get/keep used inventory and often pay premium just to have inventory to turn over. I have access to dealer auction data and I am mesmerized what prices some of the cars are sold for (between dealers or returns off lease). Seen places like Caravan selling cars at loss just to show volume of inventory movement and to help keep the stock up.

Dealers want the volume and in current times it is very simple. If you know how to sell and buy and have vehicle which is in a short supply you can do some amazing deals when trading it in for new. When negotiating with dealers - the above post mentioned one of the tricks of negotiating new first and adding trade to the picture later, next big one is negotiate with internet department online and not directly with sales in person (you rarely win on their turf), next one to be willing to travel up couple hundred miles to pick up your dream car - local market may not provide best deals.
I flip cars way too often (I have a problem). Sold four cars in last 15 months (16 LC, 20 4Runner, 20 LC, 21 GX460). Out of the four only 20LC was sold privately and the buyer was willing to pay premium. In other three cases dealers offered more than similar private listing and guides as KBB, Edmunds, etc (btw in most cases listed privately first to see if can get better prices then dealers after tax advantage). In all cases got better from dealers. On the latest two sold to dealer (last 6 months): 20 4Runner owned for 9 months & lost $500 when trading it in for 21 gx460. Then traded it in the GX460 after 4-5 months of ownership for 21 LC HE (made couple hundreds on GX). BTW I have never paid over invoice on any new with 21LC HE being the latest which I got the last week of January
So getting a great price for a trade is not a big challenge, but getting a great deal on new is more of challenge. Some hot cars like the new Corvette, Escalade, 911, Taycan are often selling way over the sticker. LC is a hit and miss looks like it based on late pricing discussions. Definitely I was the lucky one who was able to get it below invoice after prices spiked up after the announcement of LC discontinuation in US.

 

[04UZJ100]

Actually dealers are struggling to get/keep used inventory and often pay premium just to have inventory to turn over. I have access to dealer auction data and I am mesmerized what prices some of the cars are sold for (between dealers or returns off lease). Seen places like Caravan selling cars at loss just to show volume of inventory movement and to help keep the stock up.

Dealers want the volume and in current times it is very simple. If you know how to sell and buy and have vehicle which is in a short supply you can do some amazing deals when trading it in for new. When negotiating with dealers - the above post mentioned one of the tricks of negotiating new first and adding trade to the picture later, next big is negotiate with internet department and not directly with sales, next one to be willing to travel up couple hundred miles to pick up your dream car - local market may not provide best deals.
I flip cars way too often (have a problem). Sold four cars in last 15 months (16 LC, 20 4Runner, 20 LC, 21 GX460). Out of the four only 20LC was sold privately and the buyer was willing to pay premium. In other three cases dealers offered more than similar private listing and guides as KBB, Edmunds, etc (btw in most cases listed privately first to see if can get better prices then dealers after tax advantage) In all cases got better from dealers. On the latest two sold to dealer (last 6 months): 20 4Runner owned for 9 months & lost $500 when trading it in for 21 gx460. Then traded it in the GX460 after 4-5 months of ownership for 20 LC HE (made couple hundreds on GX). BTW I have never paid over invoice on any new with 21LC HE being the latest which I got the last week of January
So getting a great price for a trade is not a big challenge, but getting a great deal on new is more of challenge. Some hot cars like the new Corvette, Escalade, 911, Taycan are often selling way over the sticker. LC is a hit and miss looks like it based on late pricing discussions. Definitely I was the lucky one who was able to get it below invoice after prices spiked up after the announcement of LC discontinuation in US.

What did you pay?

 

[luke27617]

What did you pay?

Don't have the paper work handy but it was around 9.5K off MSRP. It was slightly below invoice. Normally before any incentives you can get the dealer down to 3% below invoice as they are getting that back at the end of the year.

 

[unclemat]

The auto dealership industry must have good lobbyists in your states. You get locked into dealership trades in order to get the tax benefit from a trade in?

In Vermont you have 90 days from the date of vehicle purchase to apply for a tax rebate on the sale of your old vehicle. That way you aren’t locked into the dealership to get the upside. It leaves the power in the hands of the consumer.

Wow, amazing. No such thing in the People's Republic of Massachusetts. Here they do everything to discourage private party sales or out of state purchases:

1. Mass does not recognize out-of-state temp tags.
2. "Lemon aid" applies to private party sales. Buyer has 30 days (!) to return the car if they "prove" there was a defect you knew about.
3. They demand inspection with 7 days of purchase.
4. They force out-of-state dealers in certain stats to collect tax and deal with registration. This discourages some and I've seen out-state-dealers say "we won't sell to Mass residents".

What a hellhole.