During New Years last week, I attempted to get an appraisal on my Sonata to see if I would have the same luck I did with my Infiniti G37. Back in 2011, I was able to get about $1129.80 after trading-in the G37. This time around, I was hoping to break even. What I got was a much more disappointing result. Early in the month of December, I got an appraisal offer from my local Chevy dealer. Using an “automated system”, they offered me approximately $14500. The dealer then told me that they could “probably” bump it up to about $15000, but that is the best they could do. At that time, my payoff from Hyundai was about $19300. That figure was ridiculous because my Residual was supposed to be in the $16000 range. How do you go from $19300 down to $16000 with only 4 monthly payments at $362 per month??? My thinking was that Hyundai was adding sales taxes to that number and a possible “buyout” fee, which has become ever so popular these days (just look at your lease contract closely next time and you might see it. I saw mine on my Volt’s US Bank lease). If I took taxes into consideration (which I really shouldn’t have to pay on a trade-in) I get somewhere in the vicinity of $17000, which is closer to my residual, but still on the higher side. One has to wonder how Hyundai calculates their residual values. Personally, I blame the popularity of the car. Hyundai seems to have cranked out one too many of them and it’s starting to drive down resale values.
Moving on, I clearly didn’t want to pay nearly $5000 of negative equity so I went home, detailed my car, took it to CarMax and was offered $15500. The reason why CarMax offers a slightly better trade-in is mainly due to the fact that they go by Auction pricing instead of all the KBB nonsense. Attached in this post are some of the “estimates” I got via the Edmunds and KBB websites. I also included my CarMax offer for your reference. The dealer offered me $14500-$15000. CarMax $15500, Edmunds estimated my trade-in (in good condition) to be $15947 and KBB thought my car was worth $14321. As you can see KBB gives you a good idea as to what the dealer would give you. Edmunds seems to overvalue your trade-in.
Overall, I think using online tools to estimate trade-in values can be hit and miss. It is always a good idea to get an actual offer so you know exactly how much your car is worth. However, I think based of this experience, it’s likely safe to anticipate your “real” trade-in offer to be somewhere between what KBB & Edmunds estimates your car is worth. Ideally, you probably want to have access to Manheim Auction information to get an idea as to how much your car fetches in the wholesale market.
So after all this craziness, I have decided to finish off my Sonata lease which matures in April. It’s an okay car. I still find it irritating to pump gas, but whatever. I won’t be visiting the gas station too much in the next three years so I will get over it. 🙂
PS: I GOT MY COSTCO CASH CARD YESTERDAY!!!
Appraisal Offer from Carmax
KBB Online Appraisal
Edmunds Online Appraisal
Got my Costco Cash!
Looks like Costco is at it again. For a limited-time, Costco is offering the following perks to it’s members when they purchase a new 2011 Volvo XC60 or XC90 between November 2, 2010, and January 3, 2011:
- $500 off Volvo Employee Pricing
- All available customer rebates and dealer incentives
Plus, you also receive a $500 Costco Cash Card for completing a Costco Auto Program Satisfaction Survey after purchase.
Now, when they say “purchase”, you can lease as well. Simply secure financing through an outside bank and you can take advantage of any “purchase” only incentives. You probably want to consider doing this since this month’s Volvo lease numbers are less than ideal.
For more details, click here.
For Volvo Lease rates, click here.
For a limited time, (and for Costco Members Only) you can take advantage of Employee Pricing, $500 Costco Cash Card (after completing a survey) and any rebates available for the model you purchase.
Here are the details:
Purchase a Volvo XC60, XC70 or XC90 between November 3, 2009, and January 4, 2010, to receive:
- Volvo employee pricing for the XC60
- $500 off Volvo employee pricing for the XC70 and XC90
- All available customer rebates and dealer incentives
Plus, receive a $500 Costco Cash Card for completing a Costco Auto Program Survey after your purchase.
How it Works:
- Select one of the new Volvo models listed below.
- Click ‘continue’ to register and locate a Volvo dealer participating in this promotion.
- Purchase your Volvo at the participating dealership and submit a Redemption Form to the Costco Auto Program.
- Complete a Costco Auto Program Satisfaction Survey.
- Receive your $500 Costco Cash Card in 6-8 weeks.
For more information, follow the following links:
Volvo Winter Promotion
Volvo Incentives and Rebates
Every morning, I get an email from Costco pitching their latest and greatest deals. This morning, I noticed that there were some “specials” on their Automotive site. I once leased a car using AAA and Costco (I have them both) membership, but I didn’t really seen any major advantages (mainly because I didn’t bother to ask what sort of discounts I would get). This time around however, if you head over to Costco’s Auto website, you can see all of the promotions going on.
Costco Auto Special Promotions
Couple things stand out here:
Purchase a new Volvo XC90, XC70 or V70 through the Costco Auto Program between November 13, 2008, and January 5, 2009, to receive:
* $1,000 Off Volvo’s employee price
* $750 holiday gift card from Volvo1
* All available customer rebates and dealer incentives
* $500 Costco Cash Card for completing a Costco Auto Program Survey
That’s a lot of savings since you get $1000 off the employee pricing + rebates + gift card + costco cash. Add on whatever discounts the dealer gives you and you simply can’t over look this deal if you are shopping for a new family hauler that’s one of the safest according to the IIHS (XC90).
Then there is 0% financing for Infiniti, Toyota, Nissan models. Nothing out of the norm here since I’ve seen the commercials on TV for quite some time.
GM is having a Red Tag sale…ho-hummm…
Lastly, you can get employee pricing + rebates on most 2008/2009 Ford models.