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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