Dealership Offers vs KBB Value: How Much Can You Get for Your Car?

The value of your car can vary significantly when sold to a dealership compared to its assessed value on KBB. This article aims to provide insights into what you can expect from a dealership offer and how to maximize your car's value when trading it in.

Understanding KBB Value vs. Dealership Offers

When considering selling your car, it's important to understand the difference between the value of your car on Kelley Blue Book (KBB) and what a dealership might offer. KBB provides a comprehensive valuation based on market conditions, the specific make and model, and the car's condition, while a dealership's offer is typically lower due to several factors.

The Range of Dealership Offers

Dealerships usually offer between 50% to 70% of the car's KBB value for trade-ins. If your car is valued at $7000 on KBB, you might expect a dealership offer in the range of:

However, you should always aim to get multiple quotes from different dealerships to ensure you receive the best possible offer. If your car is in excellent condition or has desirable features, you might be able to negotiate a higher offer.

The Art of Negotiation

Dealerships will often low-ball you to increase their profit margin. In some cases, a car valued at $22,000 on KBB might only be offered $15,000 by a dealer. It's crucial to remember that dealerships don't necessarily need your car; they may resell it at an auction or hold onto it to fix any issues before reselling.

Alternatives to Dealing with Dealerships

If you want to sell your car for closer to its KBB value, consider selling privately. Selling to a private buyer through channels like social media or online marketplaces can be more secure and may yield a higher price. However, it's important to exercise caution and avoid platforms like Craigslist, which can expose you to fraud and scams.

Carmax: A Better Alternative

One viable alternative to selling at a dealership is selling your car to Carmax. In my experience, Carmax offers a much more fair amount than typical dealerships. They have a reputation for paying closer to the KBB value and are more transparent in their pricing. While they may not offer the absolute highest amount, they often provide a reasonable and fair deal.

Personal Selling Experiences

For the best results, I recommend selling your car privately or to Carmax if you're looking to get close to your KBB value. When I sold five of my vehicles privately, my cars were well-maintained, had no accidents, and low mileage for their age. I was happy to sell to friends or acquaintances who knew they were getting a great deal. Not only did I receive a fair price, but I felt good about providing my friends with a quality vehicle.

Conclusion

When selling your car, it's crucial to understand the factors that influence dealership offers and the potential gap between KBB values and actual sales prices. By being prepared, getting multiple quotes, and exploring private sales or CarMax, you can maximize the value you receive for your car.