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ATC Advantage: Trade-In Value

ATC AdvantagesAs we look at some of the advantages that our ATC Distributors conversions have over the competition, trade-in value is at the top of that list. Our best selling conversions are our truck conversions. Trucks retain their value better than most vehicles on the market. They are designed for durability and longevity which provides great value to the end user and great opportunity for the savvy mobility dealer.

Let’s compare the Chevy Silverado (1500 2WD cab) to the Toyota Sienna. For our comparison we will use the middle optioned LT model Silverado and the XLE model Sienna. In 2016, both of these vehicles had an MSRP around $36,000. Looking at the trade in value today (Kelley Blue Book), assuming 30,000 miles and both in good condition, the Silverado is valued at $27,990 while the Sienna is valued at $22,305. That’s a difference of $5,685.

The formula used by many dealers to value trade-in value of a minivan conversion is to depreciate it 10% per year. The trucks and truck conversions are engineered to run longer. A factor to depreciate should be used over a 15 to 20-year period. If we use the conservative 15-year, the rate would be 6.67% per year.

The ATC Distributors truck conversion cost in 2016 was $26,900 depreciated to $21,520.
The Toyota Sienna conversion also costing $26,900 depreciated to $18,830.

The ATC Distributors trade-in value is $49,510. The Toyota trade-in value is $41,135. ATC is worth $8,375 more than Sienna.

A 10-year finance of $62,000 @ 8.9% will have a payoff of…

36 months$48,809
60 months$37,827
84 months$24,690
96 months$17,185
108 months$8,977
Finance PeriodVehicleConversionTotalATC Advantage
60 Month
Sienna$17,284$13,450$30,734
ATC$23,015$17,933$40,948$10,214
84 Month
Sienna$13,710$8,070$21,780
ATC$18,811$14,346$33,157$11,377
96 Month
Sienna$9,173$5,380$14,533
ATC$17,063$12,533$29,596$15,063
108 Month
Sienna$7,963$2,690$10,653
ATC$15,326$10,760$26,086$15,433