Yesterday I talked about the unique challenges that we faced when trying to determine the Chevrolet Volt's value. Our Edmunds True Market Value (TMV) experts had already calculated a figure, but we thought that a number from a consultation with Carmax would help verify it with a real-world price quote.
The Carmax appraisals are typically done by a single person. But our Volt was such a unique car that two appraisers were put to the test. A sales rep stopped to spectate and asked the appraiser a few questions. He seemed very knowledgeable about the car. As we’ve seen in past experience with Carmax, the appraisers walk around the car and test out all the accessories. If a car is still under warranty, they forgo the one-mile test drive they typically take.
Something strange happened when the appraisers popped the Volt’s hood. All of a sudden I heard the engine come on. This surprised me, because we had an estimated 31 miles of electric charge remaining in the Volt’s batteries. I had never seen this behavior before and even asked the appraisers if they had somehow forced the engine to switch over. It turns out that this engine ignition when the hood pops open is part of the Volt's design. According to GM's reps, this is actually a safety feature. Since the Volt is so quiet, the gas engine will start after the hood is popped to remind owners that the car is still on.
Going back to the appraisal, Carmax offered us $32,000. We asked our readers to submit their own guesses about the Volt's trade-in value and Curry2spicy was the first to guess correctly. My own prediction was $33,000. The $32K isn't too far off from what our analysts were expecting, so it’s a fair price. If the depreciation seems severe to you, keep in mind that this price is factoring in the federal tax credit.
We later contacted a Chevrolet dealer for a second opinion. The dealer gave us a significantly lower price than Carmax, $27,000. Jlaszlo was the closest to this price. He guessed $27,500.
With no true reference points out there yet, pricing the 2011 Chevrolet Volt’s trade-in value is like the Wild West right now, as they say. But this variation between our estimate, Carmax’s offer and the Chevy dealer’s offer should serve as a reminder that trade-in price quotes are simply educated guesses that might not always match up with what you were anticipating. So whether you have a Chevy Volt or a Chevy Malibu, it is important to get an appraisal from multiple sources. Otherwise, you can easily miss out on thousands of dollars.
It's not quite time to sell our 2011 Chevrolet Volt, so for now we'll let the Carmax appraisal expire. Our TMV experts are in the process of calculating a private party TMV figure. This should help us get a better handle on the price at which to list it when the time comes.
Ron Montoya, Consumer Advice Asssociate
outofmoney says:
08:18 AM, 12/ 8/11
I have always gotten a higher priced appraisal from Carmax compared to dealers. They are my go-to place for trade-in. The only downside is that you lose the tax advantage savings unless you purchase your next car from Carmax also.
fordson1 says:
08:39 AM, 12/ 8/11
I guessed Carmax would offer them $32,400, so I'm satisfied I got close.
legacygt says:
08:50 AM, 12/ 8/11
And what about GM's offer to buy back Volt's from those concerned about fires. What are they offering?
bodyblue says:
08:51 AM, 12/ 8/11
Get rid of it before any more negative press drives the price down even farther.
cr_driver says:
08:57 AM, 12/ 8/11
"should serve as a reminder that trade-in price quotes are simply educated guesses that might not always match up with what you were anticipating. So whether you have a Chevy Volt or a Chevy Malibu, it is important to get an appraisal from multiple sources. Otherwise, you can easily miss out on thousands of dollars."
+100
sniperruff says:
09:37 AM, 12/ 8/11
I bid $31999 or I win!
cjasis says:
09:39 AM, 12/ 8/11
"outofmoney says:
08:18 AM, 12/ 8/11
I have always gotten a higher priced appraisal from Carmax compared to dealers. They are my go-to place for trade-in. The only downside is that you lose the tax advantage savings unless you purchase your next car from Carmax also."
FYI - here in CA (where IL is located) there is no tax benefit.
bodyblue says:
10:07 AM, 12/ 8/11
cjasis is there some sort of tax benefit in other states? That seems interesting. Her in CA we get nailed ten ways from Sunday on taxes.
carguy622 says:
10:29 AM, 12/ 8/11
@bodyblue: Yes, if you trade your vehicle in and purchase another, the amount you will be taxed on the new vehicle will be less the trade in value of the old vehicle.
ptcdawg says:
10:44 AM, 12/ 8/11
Here in Georgia, it works the same way as Carguy said when buying from a dealer.
IF you buy from an individual owner, no sales tax is due. That's the way to go if you can here. :)
dscain says:
11:15 AM, 12/ 8/11
In NC, if you trade in a vehicle, you pay a 3% tax on the difference between the new car sales price and the trade-in allowance. If you buy from an individual, you technically don't pay a sales tax. However, you pay a highway use tax of 3% of the car's value. I'm not sure if the value is determined by the sales price or by book value; it's been a while since I bought a car from a private party.
blueguydotcom says:
11:36 AM, 12/ 8/11
Federal tax credits remain even if you dump the car after a year? Really? That's cool. Doesn't work that way with houses.
biggbrother says:
11:44 AM, 12/ 8/11
You guys seem to get some pretty unrealistic offers from CarMax. Is it because you are in SoCal or because they know you guys are from Edmunds and are giving them free press?
I just can't see how they can offer you this much, and then turnaround and sell the car at a signficant profit. Especially since they are known to have "no haggle pricing". So if they are going to be "no haggle" they can't price their cars very high because there is usually not much negotiating.
bodyblue says:
12:02 PM, 12/ 8/11
Thanks carguy....you learn something new everyday.
stovt001 says:
12:20 PM, 12/ 8/11
And that is one more reason I'm happy to leave California soon.
penboy says:
01:01 PM, 12/ 8/11
Man, I don't know how you guys get these kind of respectable offers out of CarMax; The offers they've made me have been several thousand dollars below Edmunds' TMV trade-in value. The last one was so bad I threw out the offer before I even left their showroom. (Although after I filled out a survey on that experience I did get an apology from a manager over how the appraiser handled things.)
rayjht says:
07:54 PM, 12/ 9/11
I say be damned with appraisals because it is one of if not the most advanced car in the world what do you replace it with.....a oil burner full time or a electric with limited range. I vote that you keep it and continue to taste the future.
edgecrusher says:
11:01 AM, 12/10/11
"According to GM's reps, this is actually a safety feature. Since the Volt is so quiet, the gas engine will start after the hood is popped to remind owners that the car is still on."
REALLY?! That was the best solution they could come up with, for a "green" car like this? Hmm, this thing's quiet when running on electricity, if someone pops the hood we should MAKE THE GAS ENGINE TURN ON. Good thing the same genius logic wasn't applied to whenever you leave the keys in the ignition, or leave the lights on...
jpwhitehome says:
11:10 AM, 12/10/11
I don't hold too much respect for Carmax apprasials.
They do however offer more than a dealer.
I recently sold my Malibu, it had high miles but was in great shape and had been well maintained.
The Dealer offered $1,500. Carmax $2,500
I got $4,600 selling through Carigslist, selling the car in under 24 hours.
Retail was $6,000
A car is worth what someone is willing to pay for it. Both the dealer and Carmax were being rather greedy.
zr1man says:
08:24 PM, 12/10/11
About a week ago, GM announced that a Volt owner could trade for a Corvette if they thought the Volt was going to catch fire. Now, if you can buy a used Volt for $27,000, could you then trade it to GM for a new Corvette? That would be a great deal, a new Corvette for $27,000!
mfennell says:
06:06 AM, 12/13/11
@edgecrusher: "REALLY?! That was the best solution they could come up with, for a "green" car like this? Hmm, this thing's quiet when running on electricity, if someone pops the hood we should MAKE THE GAS ENGINE TURN ON. Good thing the same genius logic wasn't applied to whenever you leave the keys in the ignition, or leave the lights on..."
What would YOU do? Go ahead, burn some neurons for us.
I think it was the right choice. If the car is ON, the engine can start. You don't want to be mucking around in the engine compartment and have that happen unexpectedly. The only other reasonable option - it never starts with the hood up - means the battery will run down if you're in ICE mode (CS) with the hood open for an extended period. It also gives a simple way to start the engine w/o an unnecessary user interface screen.
BTW, you don't use an ignition key and it won't let you leave the lights on.
damaje says:
07:15 PM, 12/14/11
It does not surprise me that the chevy dealer offered less, have you ever actually priced pre-owned cars at a car max dealer?
The window stickers for their pre-owned cars are often nearly identical to what you would get for a brand new car from a new car dealer. Sure some of them may be up to a whole $1000 less for the year old model that has 8,000 rental fleet miles on it compared to the new one with 20 miles on the odometer. The biggest difference I saw was 1500 less than a brand new Altima's sticker price, except it was the end of the model year and the Altima had a $2000 rebate one it. Luckily people see they are a pre-owned dealership and think they are going to get a much better deal than the brand new model across the street or down the street.
It really pays to do your homework, I was able to help my sister get the new Altima for 2500 below the sticker price on the base 2.5s model and then she got the rebate on top of that making it $3000 less than the pre-owned one at the CarMax in Rockville MD.