My trade in is worth HOW much!? Part two.

Last time, we talked about some factors that do and do not affect the actual value of a trade in vehicle to a dealer, such as mechanical condition or aftermarket accessories. Another factor that may cause a shopper to ascribe more value to their trade in vehicle than it is actually worth is what is known as the "endowment effect."

My trade in is worth HOW much!?

Often, society and status can influence our perception of how valuable something is. This happens with vehicles a lot. Vehicle owners make upgrades and adjustments to fit their personal preferences or to gain status or attention, and expect these changes to raise the value of their vehicle.

Many times, however, we have shoppers who are looking to trade in their vehicle and are surprised by how much the number they have in their head differs from the actual appraisal value.