How do car trade ins work?

Question

i own a 97 Jimmy and i was gonna sell it but it has way too many miles on it so i decided to try and trading it in so how does it work and is it possible i can get a newer nicer car b/c i do not want another truck

Answer 1

My Dad was a car salesman/sales manager for 10 Years. Here is the basic breakdown of NEW car pricing.

A dealer will trade you either Retail Price to Retail Price or Wholesale to Wholesale. Now, with these rules in mind let me give you some idea about new car pricing. MSRP(Manufactuer's Suggested Retail Price) or Sticker Price is considered the Retail Price of a car. Invoice price is the "wholesale" price on a car. And, finally, there is the ACTUAL COST of the car to the Dealership. This actual cost is based on factory to dealer incentives, holdback money, and I have heard it called the "the bling". Now, let's say that the car you like has a sticker of $25,000, an invoice price of $22,000, and $3000 holdback. This means that the actual cost on this example is $19,000.

So, let's say your current truck has a Blue Book value of $2500, and a wholesale of $1000. Using the numbers in the example a dealer could show you this deal on paper and still make alot of money.

Sticker Price $25,000
Your Trade $ 4,000
Final Price $21,000

The dealer will still make $3000 dollars off the deal.

You have gotta negotiate to get the best deal.

Good Luck

Answer 2

When you trade a car in the Dealership will tell you how they will buy your car from you. The value depends on several different factors such as: Year, Miles, Condition, and Current Desirability. The value they put on your car is then subtracted from the price of the vehicle you want to purchase from them. It doesn't matter if your trading your truck for a car or vise-versa.

Note: Most dealers will vary the value of your trade-in vehicle depending on what car you choose on their lot.

Answer 3

Well you could get anything that you may want? But the only side affect is that You may not get much for you car because of the year and your miles. Trade in go by the book value of the car? So your down payment may be a lot because you will not get much for your car? they wont give you much but they will sell for twice the cost$$$$$$$$$$$$$$$$$$$

Answer 4

Dealers are not usually interested in high mileage vehicles for trade-in. If they give you anything for it, they will usually sell it to a wholesaler who will auction it off. However if you don't want the hassle of selling the car you can usually get the dealer to give you something for it to take it off your hands. Pick out the car you want, and start negotiating.

Answer 5

you do not personal the vehicle to promote,the economic corporation owns the vehicle,Your no longer going to offerd any the position close to 5 for the commerce in,some sellers will pay off your own loan in a commerce in you may invite, yet, you'll proceed to pay on your first automobile, because its going to be further on your new automobile value.they don't seem going to take a loss. you want to pay off your automobile