What should a Toyota RAV4 buyer do if the dealer won't give her what her trade-in is worth? It's far less than it's worth. Should she walk away? Salma likes the 2024 RAV4 Hybrid and would buy it but has a dilemma. Here is what car shoppers need to know.
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"Toyota is telling me my Mercedes E300 is only worth $9,000 if I trade it for a 2025 RAV4 Hybrid. Are they trying to scam me?"
That's the dilemma and question that Salma (@salami4prez) has as she takes her plea for help in her TikTok video. The Toyota dealer says her 2018 Mercedes-Benz E300 is only worth $9,000 if she trades it for a new 2025 RAV4 Hybrid.
Selma says,
"I want to buy a 2025 Toyota RAV4 Hybrid, but I need to trade in my 2018 Mercedes-Benz E300, and I'm terrified to make such a big decision. I'm also scared of car salesmen."
Selma, a grade school teacher, lives in Las Vegas and doesn't make a lot of money; she works hard, is responsible with her money, has done her homework, and has identified the Toyota RAV4 Hybrid as the car she wants. She's on a tight budget and every dollar counts in her decision-making process.
Her Mercedes-Benz is in good running condition; she's had all the maintenance done that it needs, but she wants something reliable and less expensive to maintain. The RAV4 Hybrid is a great choice for her.
Selma is scared to be at the Toyota dealer
Imagine a 27-year-old school teacher walking into a Toyota dealer, talking to a salesperson she doesn't know, and test-driving a new RAV4 Hybrid. She's not a good negotiator and is looking for the best deal she can get.
She's already intimidated by the car salesperson and has to get her Mercedes-Benz appraised by the dealer to see if she can make the deal work for the new RAV4 and fit into her school teacher's budget.
Here is Selma's story, and then I'll explain her best options for trading her Mercedes E300 with the Toyota dealer.
Selma says, "So, I went into the Toyota dealer and test-drove one, and I love it. I think it's a really good vehicle. I definitely want one, and it seems like a reliable car. However, the issue is the amount they offered me for my current car since I will be trading it in."
"I don't know too much about cars and their value. If you do, please let me know if this is fair or reasonable. I have a 2018 Mercedes-Benz E300, and the only thing about it is it has 90,000 miles on it."
"So, I wasn't expecting something crazy for the trade-in value, but I was thinking about $12,000 to $13,000 would be what I would get for it."
The Toyota dealer gives Selma a low-ball offer
The Toyota dealer gives her a low-ball offer, which is a significantly lower amount than the actual value of her car. This is a common tactic used by dealers to maximize their profit at the expense of the customer.
"The Toyota dealer only offered $9,000 for it, and I'm like, no way. Doesn't that seem low?"
"So, now I have to decide if I will sell it on my own first with something like Facebook Marketplace. Once I sell it, I will buy the Toyota RAV4 Hybrid."
What is Selma's 2018 Mercedes-Benz E300 worth?
Kelley Blue Book (KBB) estimates a trade-in value of around $14,409 for a 2018 Mercedes-Benz E300 sedan with 90,000 miles. That's a significant difference ($5,409) from what the Toyota dealer says they will offer for her car.
An extra $5,000 would significantly impact her 2025 Toyota RAV4 Hybrid car payment.
Here's a more detailed breakdown of Selma's trade-in value.
1. Depreciation: In the last 3 years, her vehicle has depreciated $13,888 or 43%.
- Edmunds says the 2018 4-Matic model's trade-in value is estimated at $14,711 with a resale value of $17,513.
- Toyota will recondition Selma's Mercedes E300, and its estimated $17,513 retail price will make the Toyota dealer a nice profit.
2. Other Factors: The actual trade-in value can vary based on the vehicle's condition, features, and local market conditions.
For Selma to get a more accurate estimate, she should consider:
- Checking with a local Mercedes-Benz dealership: They can provide a more specific appraisal based on your car's condition and features.
- Using Edmunds: Edmunds also provides appraisal values for the 2018 Mercedes-Benz E-Class, with values ranging from $13,527 (rough condition) to $16,067 (outstanding condition).
- Using KBB: KBB allows you to compare up to 3 vehicles and see your vehicle's depreciation forecast data.
I wrote another report on a Toyota RAV4 owner who is moving from Hawaii and needs to sell her 2019 RAV4. However, the Toyota dealer will only give her $19,000, which is less than half of what she paid for it.
Bethany says,
"I'm moving from Hawaii to LA and need to sell my 2019 Toyota RAV4. Now the Toyota dealer tells me it's worth $17,000 less in only two years?" she says in disbelief. "What's up with Toyota?" Check out my report here.
What are Selma's options for trading in her Mercedes-Benz E300?
Bankrate says you should negotiate strategically.
Bankrate emphasizes the power of strategic negotiation. It's not just about getting the best deal, it's about feeling in control of the process. So, when it comes to trading in your car, don't be afraid to negotiate strategically.
- Separate the trade-in and purchase: Don't let the dealership tie the trade-in value to the purchase price; negotiate them as two separate transactions.
- Be prepared to walk away: If the dealership isn't willing to meet your price, be prepared to walk away and take your trade-in elsewhere.
- Know your worth: Armed with your research, be confident in your car's value, and don't be afraid to push back on a low offer.
3. Consider Selling Privately:
When considering your options, remember that selling your car privately can often yield a higher price than trading it in. However, it requires more effort.
- Tasks involved: This includes cleaning, repairing, taking photos, listing the car, and dealing with potential buyers.
- Weigh the pros and cons: Consider the time, effort, and potential hassle of selling privately versus the convenience of trading in.
Conclusion and Questions For Toyota Car Shoppers
Selma should not go to the Toyota dealer alone. She should take a seasoned person, perhaps a friend or family member who has experience in car buying and isn't afraid to negotiate the best deal. Selma is already intimidated, and the dealer can see that the 27-year-old school teacher is not in a position to negotiate a better offer for her car.
We Want To Hear From You
Have you recently purchased a Toyota RAV4 or another Toyota vehicle? Share your car buying experiences with us. Whether it's a success story or a cautionary tale, your experience can help others navigate the car buying process. Click the red Add New Comment link below and let us know.
Check out my Toyota RAV4 story: I Paid Too Much For My 2024 Toyota RAV4 Because the Dealer Stung Me By Issuing a Verbally Undisclosed Credit Card For an Extra $1,500 Down Payment
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl via Selma, Toyota
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Sell it privately. Many…
Sell it privately. Many private repair shops will let you put your car on their lot for a fee and be the third party for you. I've done this and made 2500 and 1000 more (on 2 occasions) than if I'd taken the dealer trade. Both cars were over 10 years old and over 200k miles, so that was a significant improvement! Hope that helps our intimidated teacher!
I had same issue, go to…
I had same issue, go to multiple dealerships. Until you find one that will pay you what you want for your car!
Sell it privately. Many…
Sell it privately. Many private repair shops will let you put your car on their lot for a fee and be the third party for you. I've done this and made 2500 and 1000 more (on 2 occasions) than if I'd taken the dealer trade. Both cars were over 10 years old and over 200k miles, so that was a significant improvement! Hope that helps our intimidated teacher!
First of all any teacher…
First of all any teacher that can afford a 2018 E 300 Mercedes that’s not a cheap car so she can quit blowing smoke up people’s backsides by saying she doesn’t make a whole lot of money and she’s a teacher in Las Vegas. She makes more than $27,000 a year And E 300 cost about 50,000+ so yeah she damn well makes money. and I also doubt a Toyota dealership trying to low Baller at $9000 and if she was a smart and did her research as she claims in the article, she would already know what her car is worth so this is just a bunch of social media BS she’s trying to get sympathy and likes from the social media world if she was such a smart school teacher she’d already know what her car is worth and like I said already more than once an E 300 Mercedes is not a cheap car and this car is only six years old it’s still worth 30 grand and she damn well knows it is
I Always like Toyota cars,…
I Always like Toyota cars, and had a few ones, but due to the difficulty to deal with Toyota dealers, I stayed away from Toyota and went to another brands. In the Toyota dealer they want to suck your money like there is no tomorrow , they charge for things that only exist in this dealer’s, I hope that one day things change for better.
The dealership will give you…
The dealership will give you far less than the car is worth and then they wash it up and shine it like new and then sell it for a lot more than they should. If you can sell it yourself and take the money you get in for your down payment you will be so much farther ahead. I am selling my 2006 Jeep Liberty because if I go on Kelley Blue Book I would only get about $1200 for it if I took it to a dealership for a trade in, but selling it on my own I can get $5000 for it. The dealership is making money off of those trade-ins.
Basically used Mercedes are…
Basically used Mercedes are almost worth less.
I paid $1000 for mine.
The dealer is not ripping you off!
Its a 90k 6yr old Mercedes…
Its a 90k 6yr old Mercedes. That totals up to a money pit. There's a reason she wants to get rid of it. I'm sure it needs $2-4k+ in repairs, reconditioning, & touch up to be marketable to re-sell. Just cause it's a Mercedes doesn't mean it's worth more as a used vehicle. Glad she's not my kids teacher....
I was thinking the same to…
I was thinking the same to keep the car and visit a hairdresser. Once you get appearance in order then go and negotiate with the dealer.
Absolutely! She wants to…
Absolutely! She wants to save money, making a new deal at this point does not make sense. Keep the Mercedes.
This poor lady is getting…
This poor lady is getting taken to the cleaners. If she’s determined to buy a Toyota, I would suggest going to another Toyota dealership as there are multiple dealerships in Vegas, and see what kind of deal can be negotiated. The current trade in value for her Benz is weak, but don’t forget about the sales tax differential. She may also want to consider buying a used RAV 4 with low miles as some are known to run for 250K miles.
Really all she had to do was…
Really all she had to do was come to the dealership knowing 1. The value of her vehicle and 2. The TRADE IN value. You guys are seem unaware that dealerships can’t just turn around and sell your car. They have to invest thousands in it. They have to pay their mechanics to go through that Mercedes with a fine tooth comb, figure out everything it needs, change the oil, brakes, tires, shocks, always changing the tires too, pay to have it detailed.. and most of these cars are trashed when they come in! Then they have to wait for the parts to get shipped and pay their people to install. Every car comes in with a dent or scrapes, the dealer has to pay to fix all that because nobody wants to buy a car with dents or scratches. People also aren’t mentioning that when you trade your vehicle in, you’re saving on taxes that you would normally pay for the new vehicle. All she had to do was say I’m about to walk, you need to give me $12,000 for my car. $17,000 is a joke for that car. I don’t care what condition it’s in, that’s just silly. I think $12,000 would be fair and they would have done it if she would have asked. If not, go to the next dealership, speak with a manager, skip the test drive, get the appraisal, run your credit again (won’t affect your score this time) lie and tell him you need $15,000 and hope for more than $12,000. Pay close attention to your APR, that’s where your payment will be decided.
Great comment. There's lots…
Great comment. There's lots of competition for used cars. She needs to get a couple offers from other dealers local to her. We're not getting the full story. We're not getting the price that the dealer had the car listed for. We're not getting the full condition on a used Mercedes. I work for a dealership and I've seen people trading cars during the winter because they have no air conditioning and it's hard to test for when it's 30° or less outside.
Exactly! Carmax or a similar…
Exactly! Carmax or a similar buying service. I had a 2019 Rav4 that was rear ended 2 weeks after I bought it. Her insurance wouldn't total it because she had low policy limits. Now with only 35k miles on it, the car won't start if it's cold out and different electrical issues every day. Dealer offered me$19k because of the serious accident damage. Carmax gave me $22400 & a free lyft home! Enough to make the me comfortable to buy a great certified pre-owned dream car!
CarMax is a ripoff. They…
CarMax is a ripoff. They charge new car prices on all of their junk.
Use Costco Car Buying…
Use Costco Car Buying service, it's free for members, and it can save you a few bucks , but more importantly it gives you the ability to always say, " I need to check with the Costco program".
No doubt German cars are…
No doubt German cars are pretty trashy and never have had any type of decent resale value. Best to probably donate it
It’s good to lease luxury…
It’s good to lease luxury cars so you can turn them in and have a warranty. They depreciate a lot and are expensive on repairs.
I always laugh at these…
I always laugh at these articles. First dealers will never give u what the car is worth. They are going to cheat u....also if u are a female YES most dealerships will try to cheat u even more. If you have a good 2018 Mercedes Benz in decent shape...your best bet is eBay or Craigslist.
Last year I wanted to trade…
Last year I wanted to trade my 2008 Chevy Silverado 2500HD in on a 2025 Honda Passport. The dealership offered me $5000. I knew it was worth much more than that. That night I put my truck on Facebook Marketplace asking $12000 and my phone blew up. By the next day I had it sold. I could have gotten more if I wanted but I was content with 12. I was not happy with the dealership but I realized that they all work like that.
Everyone knows dealers will…
Everyone knows dealers will always give you less money for trade ins than what they are worth on the private market. That's how they make their money on the resale if it's a lot worthy vehicle. Also they have to internally pay a tech to inspect the vehicle and make any needed repairs before resale. $9k for a car that has a consumers market value of around $15k seems about right. If as a consumer you don't like your trade offer you should post your vehicle on the private market and try to get more money for it.
This what everyone seems to…
This what everyone seems to forget value is assigned by the buyer not the seller. No matter what you think something is worth it depends on what someone's willing to pay that is why pawnshop exist, used car dealerships, etc... new car driven off the lot drops a massive amount of value because it's say it with no longer new.
The situation with Toyota…
The situation with Toyota Dealer offering only 9,000 trade in for the 2018 Mercedes E300...Simply consult with Carvana Trade In Pricing and bring that paperwork back to this Toyota Dealer or any other....Fair Trade in is between 12,900- 14,000..Don't let them LowBall you.....
Let me get this straight…
Let me get this straight...they are trying to rob you of 5000.00 and you would still give them your hard earned dollars?
True story. Coworker wanted a Rav4 hybrid but not in stock for the pandemic shortage. Needed a car sooner than later. Got talked into buying a camry and ordering the Rav4 at the same time.
Was convinced he could trade in (or sell)the camry upon delivery of Rav4. Camry got crashed into and of course has diminished value.
He claimed he got "almost what he paid for it ". There's a sucker born every minute. Still a relevant old saying.
It's a 90k plus Mike…
It's a 90k plus Mike Mercedes! Next maintenance service is around 3-5k alone! Tires, Brakes, timing belt, trans service... Expensive on German cars...part of the price you pay for those types of cars! If a reputable dealer takes something like this in trade... They will want to make sure it's 100% for the next owner. So maintenance reconditioning costs plus a fair profit when sold is online with trade offers...plus there is a tax credit,"difference figure between new car and trade" that you only pay in taxes on in Nevada...so a bit of savings there... Plus Toyota Rav 4s are a hot selling vehicle...no need to discount... Go by a Kia or Hyundai if you want a cheap copy of a vehicle.