“Why are you only giving me $20,000 for my trade-in?”
Trading in your old car can make buying a new one a little more affordable. But figuring out what your vehicle is actually worth can be frustrating, especially when dealerships seem to have a very different idea of its value.
This woman seemed on the fence about what dealerships charge for used cars versus what they’re willing to pay customers for them. Commenter reactions are mixed.
In a video, Kala Parker (@kala_parker) says customer was unhappy with their car’s trade-in value.
“The customer doesn’t like their trade value,” the text overlay reads.
Playing the customer, Parker questions why the dealership is offering her $20,000 for a vehicle when she recently saw a similar one advertised online for $30,000.
“I saw a vehicle yesterday listed online for $30,000. It was just like mine. Why are you only giving me $20,000 for my trade-in?” she asks.
Rather than explain how dealerships calculate trade-in values, Parker switches to the employee’s perspective and offers a sarcastic comparison.
“You know what? That’s a great question,” she begins.
She then brings up a couch she recently saw listed online for $400, despite it not having any cushions.
“Can you believe that? I think we’re all allowed to dream a little bit,” she says.
She seems to be saying that just because someone lists an item for a certain price doesn’t mean anyone is actually willing to pay that much for it.
“I listed my patience for $50,000 but that doesn’t mean anyone is buying it,” she writes in the caption.
Parker works in automotive finance according to her profile.
According to Kelley Blue Book, trade-in values depend on several factors, including a vehicle’s age, mileage, condition, market demand, and how well you negotiate.
But there’s another factor: The dealership still needs to make money. Dealers generally offer less than a vehicle’s resale value because they need to account for repairs and leave room to make a profit when they sell it to someone else.
And just because two cars are the same make and model doesn’t mean they’re worth the same amount. A vehicle with higher mileage, previous damage, or aftermarket modifications could fetch a lower offer.
But trade-in values are negotiable. Research your vehicle’s market value before visiting a dealership, fix minor issues, and give it a thorough cleaning to help maximize your offer.
Trading in your car is convenient, but that convenience can come at a cost. According to Car and Driver, dealerships generally offer less for trade-ins than what owners might get by selling directly to another buyer.
That’s because the dealership handles the paperwork, takes care of any necessary repairs, and finds someone to buy the vehicle.
But there are some financial benefits to trading in. The value of your old car goes toward your next purchase, reducing how much you need to pay upfront or finance. And depending on your state, you might qualify for a sales tax break.
Selling privately could get you more money, but you’ll have to find a buyer and handle the paperwork yourself.
Reactions to Parker’s post were mixed. Some took her side; others took the dealership’s.
“[just] because it’s listed for a higher price, doesn’t mean it’s going to sell for that,” one person said.
“How is this any comparison at all?” another wrote.
“I think we all understand that the dealer has to resell and make a ‘little’ money off the trade. But to try and make $10k+ off it is disgraceful,” a commenter added.
Motor1 reached out to Parker via TikTok direct message and comment. We’ll be sure to update this if she responds.
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– The Motor1.com Team