Does the Black Book value really reflect the market value?
I'm planning to change cars and I'd like to sell my Toyota RAV4 hybrid, valued according to Black Book at between $34,000 and $37,000, in exchange. I'd like to know how much more I can expect than the Black Book price, considering the current market.
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Hello Patrick,
First of all, a word to clarify that the Black Book is a working tool for wholesalers, which enables them to establish a value on a used vehicle at wholesale price, and not at retail price. In recent years, however, the values established in this book have very often been wrong, and in no way reflect reality. Firstly, because the rarity phenomenon has caused values to explode, but also because values fluctuate enormously according to the different Canadian markets.
For example, the value of a Chevrolet Bolt EV is higher in Quebec than in Alberta, where electric cars are not very popular. As a result, dealers are using this reference guide less and less, because they have to constantly adapt to a market reality that varies from region to region, and even from dealer to dealer.
One thing's for sure: the general price surge we've witnessed over the past two years is slowly fading. Vehicles are selling more slowly, demand is lower and the financial resources of Quebec households are also lower... That said, in the case of your vehicle, demand remains very high. Without knowing its year, I can tell you that the buyer will inevitably pay more than the price indicated in the Black Book.
Now, the best way to estimate how much you should be offered is to visit resale sites and find comparable vehicles. Subtract between $3,000 and $3,500 from the asking price, and you'll have a rough idea of what a dealer would normally offer you. Finally, don't forget that on a vehicle of this value, you'll be able to recover the equivalent of the taxes, and thus benefit from a total sum that could even slightly exceed its retail value. For example, if you were offered $35,000 for a vehicle you wanted to resell for $38,900, you could actually get $40,200 including taxes.
Now, some dealers will be greedier and will try to offer you less in order to maximize their profit. It's up to you to decide whether the offer is right for you, taking into account the price of the new vehicle you want.
