Eastern Chrysler Dodge Jeep

 
 What do Blackbook values mean?
What are Trade-in Value Considerations? 

 


Firstly, Canadian Black Book is a representation of overall market conditions as related to vehicle values.  Canadian Black book is an independant opinion or guide of vehicle's value, as a generality. 

It is not an appraisal of your vehicle by the Dealer.

When considering taking a trade-in, a number of factors influence a dealers ability to resell the vehicle including the condition and kilometers of the vehicle, the number of similar vehicles available in the market, and overall market conditions.

These factors will then in turn affect the amount offered to you for the vehicle, and while book values offer a guide to what your vehicle may be worth, the book value may not have factored all the variables that determine real market values.

Further, the "sale" prices of your vehicle model new, may impact your vehicle value.  This is a very changable variable.

While you may not feel investing in your trade-in would be a worthwhile investment, it may very well be, this is your decision.

Here are some tips for helping you get most for your trade-in:

It is alright to bring it in as is or, you may want to undertake some steps to help it show better, for example...

-Before you arrive at the dealer ensure that you have thoroughly cleaned the vehicle, inside and out. This helps the dealer to see the vehicle objectively.

-If the vehicle has strong odours, smoke and animals being the most common, consider a professional detailing.

-Bring your service records, if you have.  This demonstrates routine maintenance and repairs have been addressed.  While repair records are beneficial, they only provide evidence of maintained portions of your vehicle, and do not normally provide a dollar for dollar increase in value.   They substantiate your vehicle is worthy of the market value. 

-If your vehicle has been recently safety certified, bring those documents to the appraiser.  A recent safety certification from a reputable service center will assist value.

-Consider correcting more serious body and interior damage. Unrepaired exterior damage is a source of serious concern for the dealer because it is not always limited to cosmetic damage and may require more extensive repairs than is visible. Also remember to disclose any previous accidents and subsequent repairs made, to the dealer. 

If you bring insurance claim repair sheets to cover the damages, this is helpfull as well.  If your insurance deductible is payable, then only the deductible should be expected to be reduced from overal values, not the entire value of the damages.

-The following factors influence vehicle condition and accordingly the final trade-in value you will receive. Vehicles are classified into categories, a value range is usually provided. In order to appraise a vehicle properly, appearance, equipment, trim level, overall mechanical condition, and mileage are considered.  

The higher of the numbers would usually represent a lot ready, fully safetied, reconditioned, and detailed vehicle. 

When you arrive at the dealer few key items will be reviewed such as:

• Odometer - is your vehicle above or below the typical range for the model year.  Typically, the average Canadian drives between 18,000 and 24,000 kms per year.
  
  
• Exterior Appearance -Scratches, dents, rust, paint condition (has it been recently waxed or polished), windshield cracks or chips and other visible damage that remains outstanding, will need refurbishment, and therefore affect value.
   
• Interior Appearance - Excessive wear or dirt, tears, burns, stains, and odours may all require correction before the vehicle is resold, and these items left outstanding, will affect values.
  
  
• Mechanical Condition - Undiagnosed/unrepaired warning lights, engine/transmission noises, steering and suspension noises or defect, worn brakes are all items that represent potentially expensive repairs that must be corrected before delivery to the next happy owner.
  
  
• Tires - while tires may appear to be in good standing, they are often in need of replacement due to general wear, uneven wear, sidewall cracking, cracks between the grooves, or damaged steel belts.  Mismatched brands of tires or wrong sized tires for the vehicle will also be considered.
  
  
• Previous accidents, repaired or not may impact your values. 
  
  
  All of these items can affect "your trade in value", and may be shown as additions or deductions to your vehicle value, dependant on how they affect marketability of your vehicle.
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  For additional consideration, is "tax effect" on a vehicle on a Trade in...   When you buy a new vehicle from a dealer and trade your vehicle in, there is a tax saving, as you would only pay tax on the difference in values.  There is tax benefit to trading as opposed to not trading. 
  
  For example, if you bought a vehicle worth $25,000, and traded in a vehicle worth $15,000, you would only pay tax on the $10,000 difference.  This reflects a $1,950 tax saving (at a 13% tax rate).  In effect, therefore, your $15,000 trade may reflect a $16,950. value to you.
  
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