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

[gomotomoto]

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?

 

[Tex68w]

That's awful in my neck of the woods. I am not sure what condition you'd consider it to be in or where you're located (that matters for local market adjustment). Down here around Houston for a clean trade 2016 with 44K miles with standard options book is pulling $55,500-59,300 with an average of $57,400. He is screwing you IMHO.

 

[mbach]

I got $53K in trade-in for my 2020.
2015 with 21-22K I think. I had one small door ding.

The dealer may have the advantage over private party with the subtraction in taxable amount you'll pay over selling to private party.

 

[Tex68w]

Yes, most states you get a tax shelter on the trade but I wouldn't allow that to impact my trade value so that they can reap the benefits, they aren't paying the taxes on the deal lol. Just another BS game they play in an attempt to make more money off of you.

 

[CharlieS]

Depends whether you value convenience over returns.

I feel confident that you could get considerably more in a private sale right now with how hot the market is.

But it is hard to beat the convenience of dropping off the old one and driving off with a new one.

I haven’t traded in a car in decades, the private sale market has always worked out in my favor over trade ins.

The truck and suv market is volatile right now - the last vehicle I sold was a Tundra in January. It was dealer appraised for a trade in at $14k, had serious lookers at $26,500, and eventually sold for $25,500 (within three weeks of being listed). I’d rather hold onto that upside than hand it to a dealer.

 

[Tex68w]

I wouldn't trade it for that number, that's all I am saying.

 

[grinchy]

If you live near a carmax see what they will offer. I have also had luck taking the vehicle to dealerships and asking their used manager to offer. Try the bmw Mercedes Acura and Cadillac dealers. As soon as you have a couple offers you’ll know what the local value is, and you can decide how to proceed

 

[gomotomoto]

You guys are awesome. Thank you. Going to see what I can squeeze out of the dealer.

 

[gomotomoto]

I wouldn't trade it for that number, that's all I am saying.

What would be your "GO" number?

 

[rlynch356]

I would also try carvana - they will give you a number in a couple of minutes and then pick it up if you accept. Had some good luck with them over the dealers and used the # to my advantage as well on my Tundra

 

[Tex68w]

My "bottom dollar" would be $53K because I'd get another $3300 in tax shelter making it net $56,300 on the deal and then you only pay tax on the difference. I got $70K on our 21K mile 2019 LX570 two-row a few months back before the rush to buy the last of the 200's really took off. We had a $4375 tax credit on the deal and paid $78K for the new LC meaning I only paid $500 in tax on the purchase of a $78K vehicle. Low inventory is your friend on this deal (trade side), you are providing them with a more affordable option of one of the most sought after vehicles at the moment that they will sell quickly and at a premium. This is how things work in Texas, I don't know where you're located but if you don't benefit from this scenario then I'd be looking for $54K as my bottom dollar trade value.

 

[Tex68w]

Just like Carvana, I would try Vroom as well.

 

[CharlieS]

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.

 

[Sandroad]

If you’re paying a premium for new, you should expect a premium for your trade, especially one as nice as yours that won’t require reconditioning. A quick search of cars.com shows 2016 LCs with about that mileage being offered for just over $60K. If you allow the dealer some profit and assume they have costs associated with the buy/sell of the ‘16, I’d hope for high $50Ks on a trade. I think they lowballed you by thousands.

 

[CharlieS]

They make decent profit on used vehicles. There isn’t much money in a new land cruiser sale, once all the bills are paid. Sell new high, lowball trades, auction the crap, mark up the keepers. You should expect a lowball trade from a dealer, it is their business model.

 

[Chewbacca]

Carvana, Carmax, Echo Park (and maybe others in OP's area) will do an online assessment of the car and give you a $ amount they will pay for it. Takes just a few minutes and then you'll know what the top number is. Factor in sales taxes and you can easily see which way is better, selling or trading. All are zero fuss.

 

[Sandroad]

They make decent profit on used vehicles. There isn’t much money in a new land cruiser sale, once all the bills are paid. Sell new high, lowball trades, auction the crap, mark up the keepers. You should expect a lowball trade from a dealer, it is their business model.

That's interesting info. I assumed that a new LC sale this year (most of which have been at a premium near or even over MSRP) would make lots of money for a dealer. And I think just because you expect a lowball on the trade doesn't mean you have to accept a lowball on the trade.

 

[mcgaskins]

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?

I'd sell to a member here. I'm sure you can find a buyer that will match the dealer trade plus the tax advantage. You'd be indifferent financially, the buyer would get a better deal than purchasing from the dealer, and it makes negotiating simpler on the new purchase since there's only one variable. Everyone wins except the dealer, but that's their fault for low balling you on a trade and then charging a premium on the purchase. PS I'd reach out to @Eric Sarjeant on the purchase if you haven't already to at least let him run the numbers. Even with shipping, you may come out ahead and either way you get good data points.

 

[spazzyfry123]

Not an apples to apples comparison, but close. I just purchased a 2016 with 66k miles from a Toyota dealer in superb shape. New Michelin’s, no rust, functioning recirc door, every last bit of everything from new (remote for rear, covers for screens, literature, even the original window sticker), good maintenance... you get the idea.

I drove home for $53k. I paid more, but the mileage difference wouldn’t have a large value impact for me. Too similar.

I bought a very similar vehicle as an end user at what should be peak price for really not that much more than what your trade in is. Tax benefits outweigh the delta in fact.

Similarly, I found private sales for slightly cheaper than my purchase, but actually turned out to be more expensive after the dust settled. I don’t get my trade in tax break. I also financed a portion of the purchase, and if the loan saw full term, private party APR vs dealer APR = real money.

My point is, from a buyer’s perspective, I wouldn’t have purchased your truck even at $51k. I still think you should be able to get some negotiation on the trade in, but I don’t think it’s a “bad” offer. As others have mentioned, you can try CarMax or Carvana. They may get you a little better, but it will net negative after the lack of tax break on trading in.

 

[FerrisBueller]

Not an apples to apples comparison, but close. I just purchased a 2016 with 66k miles from a Toyota dealer in superb shape. New Michelin’s, no rust, functioning recirc door, every last bit of everything from new (remote for rear, covers for screens, literature, even the original window sticker), good maintenance... you get the idea.

I drove home for $53k. I paid more, but the mileage difference wouldn’t have a large value impact for me. Too similar.

I bought a very similar vehicle as an end user at what should be peak price for really not that much more than what your trade in is. Tax benefits outweigh the delta in fact.

Similarly, I found private sales for slightly cheaper than my purchase, but actually turned out to be more expensive after the dust settled. I don’t get my trade in tax break. I also financed a portion of the purchase, and if the loan saw full term, private party APR vs dealer APR = real money.

My point is, from a buyer’s perspective, I wouldn’t have purchased your truck even at $51k. I still think you should be able to get some negotiation on the trade in, but I don’t think it’s a “bad” offer. As others have mentioned, you can try CarMax or Carvana. They may get you a little better, but it will net negative after the lack of tax break on trading in.

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.