Trade in... ugh

[Butch Cassidy]

With some states don't you also have to consider the sales tax savings by trading in?

Yes.

 

[mitchkramez]

Great info. Sounds exactly like my situation! How close was Carvana’s final offer from their online initial offer? I guess I don’t trust anyone in the car business so I’m waiting/looking for the bait and switch. Did you have an outstanding loan on your trade in? If so, did Carvana handle that without any issues?

In my case, their offer they gave me online was what they paid me, no changes after picking it up or upon seeing it. We did have a tiny amount left on our loan, and Carvanna handled that as well without any issues The only thing that concerned me slightly was that they asked me to wait for 24 hours for the check to be approved, even though they gave it on the spot. Ended up not being an issue and everything went just fine!

 

[Arnold_Trollzenegger]

I actually see my car listed for 38.8k on Carvana. I sold it to them for 35.3k. They stand to make a few thousand if it sells.

I had it listed for about 2 months on autotrader while I waiting for my Telluride to come in for 36-37k and only got spammed with lowball offers.

Carvana, Vroom, Carmax all offered me 35k+. I didn't like Vrooms terms and conditions, and they don't give you a check on pickup, so I can't recommend them. I've heard good things about Carmax but the closest one is over an hour away. Carvana gets a 10/10 review from me though.

You made the right decision IMO by selling to Carvana. I sold to Vroom because they had a slightly higher price for the 2017 RAV4 that I was selling and replacing with the Telluride.

Vroom's internal processes seem very unorganized. My car was picked up by Vroom’s contractor on December 7th and the two checks (one to me and a separate one to Toyota Financial Services) were not sent out until January 8th. I had to hound Vroom every few days and I was always told “the wheels are being greased” in the Finance Department. I was also told that the staff in the Finance Department capable of cutting and sending checks did not have phone numbers.. only email addresses. Not sure if that was some BS from the custom service team, but they insisted they could not call the Finance Department directly.

Keep in mind that I submitted all of the requisite paperwork on time and the delay was completely on Vroom’s end. I don’t know how much the holidays added to the delay but that certainly didn’t help.

Don’t expect a smooth process if you’re selling to them. I did read several reviews where people got their checks from Vroom within a few days of their car being picked up, but that was not my experience at all. It was a bit distressing to turn over a ~$15K asset and then wait a whole month for actual payment. It got to the point that I found a couple email addresses for their corporate attorneys on Vroom's SEC filings and I was about to send an email to those individuals requesting immediate payment.

 

[mitchkramez]

You made the right decision IMO by selling to Carvana. I sold to Vroom because they had a slightly higher price for the 2017 RAV4 that I was selling and replacing with the Telluride.

Vroom's internal processes seem very unorganized. My car was picked up by Vroom’s contractor on December 7th and the two checks (one to me and a separate one to Toyota Financial Services) were not sent out until January 8th. I had to hound Vroom every few days and I was always told “the wheels are being greased” in the Finance Department. I was also told that the staff in the Finance Department capable of cutting and sending checks did not have phone numbers.. only email addresses. Not sure if that was some BS from the custom service team, but they insisted they could not call the Finance Department directly.

Keep in mind that I submitted all of the requisite paperwork on time and the delay was completely on Vroom’s end. I don’t know how much the holidays added to the delay but that certainly didn’t help.

Don’t expect a smooth process if you’re selling to them. I did read several reviews where people got their checks from Vroom within a few days of their car being picked up, but that was not my experience at all. It was a bit distressing to turn over a ~$15K asset and then wait a whole month for actual payment. It got to the point that I found a couple email addresses for their corporate attorneys on Vroom's SEC filings and I was about to send an email to those individuals requesting immediate payment.

I would agree - we also checked Vroom and their process was a mess and a way bigger pain. Their offer was $250 less than Carvanna so it made the decision easy, but based on how messy Vroom's process seemed, we may have gone with Carvanna anyway.

______________________________

 

[TellTastic]

Great info. Sounds exactly like my situation! How close was Carvana’s final offer from their online initial offer? I guess I don’t trust anyone in the car business so I’m waiting/looking for the bait and switch. Did you have an outstanding loan on your trade in? If so, did Carvana handle that without any issues?

They already had the check written for the amount offered online.
But, i played it sneaky- I created two carvana accounts, did an appraisal. Then two weeks later, did another one on the second account. The second one was $200 more than my first. It’s just how the used car market was feeling that day.
I took that offer and ran with it, which by the way was $1000+ more than the carMax appraisal

 

[mcbrains001]

They already had the check written for the amount offered online.
But, i played it sneaky- I created two carvana accounts, did an appraisal. Then two weeks later, did another one on the second account. The second one was $200 more than my first. It’s just how the used car market was feeling that day.
I took that offer and ran with it, which by the way was $1000+ more than the carMax appraisal

dealership fair price is definitely subjective. I traded in my 2018 Sorento which was under a lease. So what the dealer did was, when I put down the refundable deposit, they suggested to me that if I want they can take my Sorento at that time then give me a loaner to avoid putting more mileage on the car and hence a lower amount. I agreed and used their loaners until my Telly came. This started from on May 1 2020 to sept 7th 2020.
I suggest checking the dealer now to see how much they will offer then work from there.

 

[casphi]

I got my Telluride back in November. Did not get a $ quote for my trade in between order and pick up date. Like you I was worried about what I would get. Also knew being a 2012 it was not worth much. The A/C was out and was $1000 to fix. But I was pleasantly surprised that they offered me more than I had expected on a trade in. But my guess is this is based on dealer, area, and time.

 

[TellTastic]

dealership fair price is definitely subjective. I traded in my 2018 Sorento which was under a lease. So what the dealer did was, when I put down the refundable deposit, they suggested to me that if I want they can take my Sorento at that time then give me a loaner to avoid putting more mileage on the car and hence a lower amount. I agreed and used their loaners until my Telly came. This started from on May 1 2020 to sept 7th 2020.
I suggest checking the dealer now to see how much they will offer then work from there.

you do make a valid point. Fortunately, we didn’t need the second vehicle. It was a bummer not having it for two weeks but it was only two weeks and it was less hassle to work with carvana that it was with the dealer.
that said, I’ve done this twice now with buying new with a trade- the first was simple and I received an appropriate valuation for my first trade. For this one, with the Telly being a hot item thus not able to receive an appraisal before it came it, carvana was a route I choose to go and Id do it again in a heartbeat

______________________________

 

[victx87]

There was no bait and switch with Carvana for me either. The price I was quoted was the price the check they gave me. For verification, they only backed my car out of the garage into the drive way and did a quick walk around. They didn't even test drive it. I deposited the check online with my banks mobile app immediately afterwords without issue. Took a few days for it to fully clear though.

There's actually zero commitment to Carvana if they actually tried to lower the price on you. They drive to you, not the other way around. My check was pre printed and handed to me on vehicle pickup. Just be reasonably honest on your appraisal and you shouldn't have any issues.

 

[Kwim]

If the dealer is correct, no problem either. By the way, when making a deal with a dealer, you still save a lot, since the tax is paid from the difference

 

[Arnold_Trollzenegger]

I would agree - we also checked Vroom and their process was a mess and a way bigger pain. Their offer was $250 less than Carvanna so it made the decision easy, but based on how messy Vroom's process seemed, we may have gone with Carvanna anyway.

In my situation Carvana was a few hundred dollars less than Vroom, but in hindsight I would take the Carvana offer just for sheer peace of mind since you get the check immediately.

 

[RAP]

It looks like all is working out. Great.
I did not try the Carvana option, primarily because I had 187k miles on my 2011 Outback. I had been working with my dealer via phone and email only. A pre-deal trade in was not on the table until they had a chance to look at my car. They are 3 hours from where I live, so nothing was settled until I went to pick up my Telluride. I know they had the upper hand in that negotiation, however, they gave me a very reasonable trade-in offer - pretty much right at what I wanted and expected, given the Kelly Blue Book estimates for trade-in. The car was in good condition, but High miles. The trade-in was worth the "loss" on what I could get selling direct. I did not have the desire to go through that process and by a trade-in, I did not have to work the logistics of picking up my Telluride and getting two vehicles home.

______________________________

 

[Buttnkdwonder]

Carvana is by far the easiest and best option. Highest offer by far that I received, about 3 days between when I got the offer and when I was able to schedule an appt, they come directly to your house, sign a couple docs, and hand you a check. I really don’t understand how they are making money based on what they offered me, and I’m sure the gravy train won’t last forever—but for now there’s Carvana and everyone else when it comes to selling most vehicles.

 

[qwikhit]

Carvana works on volume; they mark up their purchases by not by much

 

[ScottyMKC]

I know in Missouri if you sell a car (or multiple cars) within 180 days of the purchase (or possibly licensing) of a new vehicle you can deduct the sale price of the sold car from the new price for sales tax purposes. You can actually receive a sales tax rebate if you sell a car up to 180 days after but have already paid the sales tax.
My dealer will not quote me a trade in on my current car yet. I close my sale on ~4/06 and plan to re-up my sale quotes from Carmax, Carvana, Vroom a few days out from the close (all it takes is filling out a form online to get a semi-firm to guaranteed quote). Then I will use the highest offer as my backstop on my trade at the dealer. FWIW, these purchase companies are negotiable just like your dealer. I have already negotiated the sell price up by 5% on the old car through Vroom when they called me to follow up on my online quote. Granted they were still lower than Carvana, who quoted me the highest sale price by 7% over the next best.

 

[YEH]

Carvana pays top dollar because they need to keep replenishing inventory.

Many dealerships (including Kia) are offering KBB values, but those are low considering where the used market is these days.

______________________________

 

[DownToThis]

I posted in the good dealer listing but I traded in my vehicle at the Kia dealership in PA on Tuesday and they gave me a lot more than anticipated. Initially through email they offered "around" $7000 when I gave them the Vin and described the condition. Vroom offered $6700. Two years ago carmax offered $8000 so I figured this was ok. Then two days before I went to pick it up they quoted $8500 for the trade in. I didn't believe it but when I picked it up that's what they gave (2010 highlander). I didn't ask any questions in case they changed their minds!

Not sure if it's a PA thing but on the radio on the way to pick it up a bunch of different dealers were advertising "up to 130%" on trade ins. So maybe some locations are desperate for used cars?

 

[Thegair]

A question for anyone who’s gone through this... I’m planning on trading in my Cadillac Escalade to the Kia dealer when my Telluride comes in… What are the chances of getting a fair price for my trade-in when the dealer knows I’ve waited for six months and it’s finally sitting there on the lot? Especially since they know they can just as easily sell it to anybody for probably more than MSRP
(I’m working with a dealership that charges MSRP for pre-orders, but anytime a deal falls through, or they have one on the lot that’s available, they mark it up). I really don’t have the time or energy to sell it privately, and I was hoping to use the tax break for a trade-in.
So it just dawned on me that the dealership could easily offer me thousands of dollars less for my trade-in, full well knowing that they’ve got me by the kahoonas.
Any suggestions?

Instead of trading in my old car or trying to sell it outright I thought (just for kicks) that I would contact Carvana and see what they would give me. Let’s just say I was surprised by their offer and I accepted it. The whole process was smooth as can be and I was able to set the date of sale. Might be something that you could look in to