Very low Trade in Offer

[PNWBlackDiamond]

All,
Happy Friday,
I am about to complete the purchasing process for 2024 R1S and want to trade my existing car. Rivan is offering almost 10-11 K compared to KBB. (44 K rivian offer vs 55-57K KBB offer). Not sure where Rivian is getting their values? But is this offer negotiable? Who can we talk to about this? Sales or Rivian guide?

Thank You!

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[connoisseurr]

I’ve seen many people on Facebook get a Carmax offer that’s higher than Rivian’s, and Rivian will match that. They won’t match any other offers.

 

[Southern R1S]

Offers are non-negotiable (they are using a third-party to offload the trade-ins). The only adjustments that Rivian will make are for errors (such as condition, model, trim, etc.).

You're almost always going to get more $$ for newer / late model / higher value vehicles selling to another buying service than a direct Rivian trade-in, though there may be state tax savings that can offset some of that difference depending on your state's laws.

 

[ksurfier]

Try Carvana, Carmax, truecar, vroom…

 

[sfvR1S]

Maybe it's just me, but if I can get a quick sale from carmax or another company for more than trade in value, the obvious answer would be to...

 

[zefram47]

Rivian does not sell used vehicles, so everything they take in on trade goes to an auction house. That means they essentially have to make relatively low offers to allow auction buyers to still make a profit. You'll likely be better off at CarMax, Carvana, etc. I was a rare case where my 4Runner got a better offer from Rivian at the time I did the paperwork. That vehicle later showed up at a local dealer for sale for $15k more than they gave me in trade, though I think it didn't sell until they dropped the price to about $7k more than I got.

That said, some states give a credit for the value of a trade-in when calculating sales tax. So if the Rivian was $100k and your trade was $50k, you'd only pay sales tax on the $50k remainder. To some, that's worth enough to not bother with another way to offload their old vehicle.

 

[a76marine]

Rivian does not sell used vehicles, so everything they take in on trade goes to an auction house. That means they essentially have to make relatively low offers to allow auction buyers to still make a profit. You'll likely be better off at CarMax, Carvana, etc. I was a rare case where my 4Runner got a better offer from Rivian at the time I did the paperwork. That vehicle later showed up at a local dealer for sale for $15k more than they gave me in trade, though I think it didn't sell until they dropped the price to about $7k more than I got.

That said, some states give a credit for the value of a trade-in when calculating sales tax. So if the Rivian was $100k and your trade was $50k, you'd only pay sales tax on the $50k remainder. To some, that's worth enough to not bother with another way to offload their old vehicle.

This... 100% this.

 

[Rivdog]

FWIW, I’m considering swapping my 2023 R1T for a 2024 R1T lease and Rivian offered $59,300 as a trade but CarMax only offered $55,000. Just a data point.

 

[PNWBlackDiamond]

FWIW, I’m considering swapping my 2023 R1T for a 2024 R1T lease and Rivian offered $59,300 as a trade but CarMax only offered $55,000. Just a data point.

It may be because like to like trade-in just a different year.

 

[narmstrong79]

All,
Happy Friday,
I am about to complete the purchasing process for 2024 R1S and want to trade my existing car. Rivan is offering almost 10-11 K compared to KBB. (44 K rivian offer vs 55-57K KBB offer). Not sure where Rivian is getting their values? But is this offer negotiable? Who can we talk to about this? Sales or Rivian guide?

Thank You!

What are you trading in? I had the same experience with my Mustang Mach-E with low miles. I got about $8k more thru Carvana

 

[UnsungZero_OldTimeAdMan]

All,
Happy Friday,
I am about to complete the purchasing process for 2024 R1S and want to trade my existing car. Rivan is offering almost 10-11 K compared to KBB. (44 K rivian offer vs 55-57K KBB offer). Not sure where Rivian is getting their values? But is this offer negotiable? Who can we talk to about this? Sales or Rivian guide?

Thank You!

What's a good deal for you isn't a good deal for Rivian. Just like trading a car in anywhere. The party on the other side of the negotiating "table" has to try to get terms that are most beneficial to them; i.e. maximum profit when they turn around and sell it wholesale. Plus, used car market have been soft for months. That doesn't help you. Move on and pursue higher quotes elsewhere. Complaining about what Rivian offers doesn't do anyone any good. It's just business. Not personal.

One thing to note, from what's been shared, Rivian doesn't seem to be too picky about condition of trade-in. On the other hand if you go to CarMax, and I know this for a fact, they might give you a good offer online, but once you get to your appointment for in-person appraisal, they will do everything they can to reduce that online offer as much as possible. It's their standard tactic. Lure you in with high quote online, then low ball in person (which you're likely to throw up the white flag because you've already taken the time to get there and want closure). Other used car networks do exactly the same thing and have legal disclaimers on the online quotes.

 

[ryunited]

Yeah, I went with Carvana. Nice and easy. They beat KBB associated local dealers and Rivian's trade in (and I'm in NJ where there is no tax benefit to trade).

 

[PNWBlackDiamond]

What's a good deal for you isn't a good deal for Rivian. Just like trading a car in anywhere. The party on the other side of the negotiating "table" has to try to get terms that are most beneficial to them; i.e. maximum profit when they turn around and sell it wholesale. Plus, used car market have been soft for months. That doesn't help you. Move on and pursue higher quotes elsewhere. Complaining about what Rivian offers doesn't do anyone any good. It's just business. Not personal.

One thing to note, from what's been shared, Rivian doesn't seem to be too picky about condition of trade-in. On the other hand if you go to CarMax, and I know this for a fact, they might give you a good offer online, but once you get to your appointment for in-person appraisal, they will do everything they can to reduce that online offer as much as possible. It's their standard tactic. Lure you in with high quote online, then low ball in person (which you're likely to throw up the white flag because you've already taken the time to get there and want closure). Other used car networks do exactly the same thing and have legal disclaimers on the online quotes.

I understand "What's a good deal for you isn't a good deal for Rivian" This is not my first rodeo. I have been leasing and trading cars for the last 12 years. I have leased and traded 7 cars in the last 12 years.

I also understand that it's all business. For me also it is business. I am not complaining. I am asking for others' experience. I never got such a lowball offer in my past deals. In fact, couple of years back I got 4k from Honda when I traded my Toyota. I understand that 2 years back used car market was really hot due to a new car inventory issue.

 

[PNWBlackDiamond]

What are you trading in? I had the same experience with my Mustang Mach-E with low miles. I got about $8k more thru Carvana

I am trading 2022 Jeep Wagonner Series 2 only 13K miles in 21 months.

 

[Yossarian]

If your state allows you offset the sales tax on the new vehicle by reducing the taxable basis by the trade-in value, then you can accept a lesser value for the trade vs selling it to a private party. How much less depends on the sales tax percentage and the trade & sales numbers.

For example, in a state with 6% sales tax, buying a new car with a price of $100,000 will generate a sales tax liability of $6,000, meaning you pay a total of $106,000. If you trade a car in, and Rivian gives you $40,000 for it, you would owe sales tax on the $60,000 delta, so $3,600, and would effectively be paying only $103,600.

If Carvana or any other third party offers you more than $42,400 for the vehicle, you come out ahead selling to them. Put another way, $42,400 is your break-even number; the $40,000 you can get in trade, plus the difference between the two sales tax amounts above - $6,000 less $3,600. You will still pay $106,000 in total at the time of sale, but your tax is effectively only $3,600 - the same amount you would have paid with a trade-in, but in this case, you got that extra $2,400 from the Carvana sale.

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