How Do Car Dealers Determine Trade-In Value?
This article will explain the basics of how car dealerships determine the value of a trade-in. It’s based on my personal experience working in several car dealerships, however cannot be guaranteed to be the end all answer to this question. In 99% of car dealerships: The following factors are used to determine the ACV of a trade in. ACV stands for Actual Cash Value. • Vehicle Mileage • Interior Condition • Exterior Condition • Tire Wear • Cost of Reconditioning or “Recon” for Sale at Auction or On the Lot Dealers used what is called the “Black Book”, which is a weekly publication that gives dealers averages of what vehicle makes and models are currently selling for at auction. Kelly Blue Book is RARELY ever used because it always shows a higher value. NADA (National Auto Dealer Association) car value guides are used in some dealerships. 99% of dealerships across the nation, the Black Book is used and is not a publication that is sold to the public. Values are based on “Clean Book”, “Ave
