Why do car dealers give you so much less for a trade and then turn it around to make so much more?

Question

I've seen dealers give you way less for a car that's been well maintained and then turn to sell it for up to $5000.00 more. What's a good trade price when comparing on the Kelly Blue Book prices under TRADE vs PRIVATE SELL vs RETAIL?

Answer 1

The dealers have something called a Black Book as opposed to the Blue Book, this is how they know what the trade value of the vehicle is. Unless you are a registered dealer you will not be able to gain access to this kind of info. The answer to your first question is that car dealers are in business to make money. Unless you are a skilled negotiator I would suggest that you just sell your car on the street and get the best you can for it. Even if you get a dealer to give you a higher trade in value for your car, they will get that money somewhere else in the contract for the sale of your new vehicle. It is a game on numbers. The best time to purchase a car from a dealer is at the end of the month, or at the end of the year. They are generally willing to take more of a loss then and complete the sale. If you feel that you are not getting the deal you want get up and walk away from the table. Until you sign the contract you are not obligated to go through with the deal! Good Luck!

Answer 2

Car dealerships make way more money off a used car than they do new. They're banking on the fact that allot of people don't want to go through the hassle of selling the car themselves. Any amount you get off of Kelly Blue Book, you need to take at least 10% off of the trade in amount. This is the amount the dealership is probably going to offer. When people bring in a copy of the Blue Book price they got online or whatever, they usually laugh. The private sell and retail (basically the same thing) is more of a realistic amount that you may be able to sell to another private party.
Remember all those extras you put into the car, doesn't do a thing to the value in the dealers mind. If you have the patience, sell it yourself.

Answer 3

The reply is a bit more elaborate than you consider. Sure Blue e-book and beauty situation are elements nevertheless it quite is determined by what your automobile is and which trader you're buying and selling it in to. In usual, should you alternate an older automobile in at a brand new automobile dealership, you will not get up to should you traded it in at a used automobile dealership. This is due to the fact the brand new automobile trader isn't going to retail your automobile whilst the used automobile trader could. The opposite could also be precise should you alternate a overdue mannequin luxurious automobile in at a small used automobile lot. It will get extra elaborate whilst you do not forget elements like benefit margin at the automobile you're purchasing or even geographical variations available in the market. You simply have got to take it in and spot what they're inclined to provide you. In both case, only a few purchasers will refuse your alternate. They do in the end desire to promote you a automobile. Your brake and ABS gentle would simply be rear brake pads. It is natural on many automobiles that in case your rear brake pads are particularly low that each the ones caution lighting will come on. You will have to obviously have it checked out earlier than you attempt to alternate on your automobile. The trader taking the alternate has to plot for the worst (exact ABS issues) while appraising a automobile as a substitute of taking a threat that it's whatever minor. Good success.

Answer 4

Any vehicle has a low trade and a high or clean trade value and a average retail across the nation value which is what you ask for selling it on your own. Vehicle industries is a business so in order to stay in business, they have to buy at wholesale and sale at retail. Just know that it is always best to sell it yourself than to trade.

Answer 5

It is very simple. The dealer wants to give you wholesale price for your car then pay the expense of reconditioning the vehicle and getting it in shape to resell at retail. At my dealership we usually spend anywhere from $800 to $1200 per vehicle to make it ready to sale so that we can give a warranty. Anything we are not comfortable we can back-up, we take to the auction. When we mark a car up $4000, we expect to spend $1000 to get it ready to sale. The new customer usually expects a discount of around $2000. Then we have to pay the salesman (me) 25% of the gross profit. We have to keep the lights and heat on and advertise. We also have to pay taxes on our inventory, and other things such as rent and office supplies. Overall, we make a net profit of less than $1000 on any used vehicle. That is fair considering our average investment of $13000 per vehicle. Most retailers make over 50% net profit. Car dealers are getting by on less than 15%. Hope this helps you understand. - Gary

Answer 6

trade is trade, retail is smoking crack, private sell is fairly reliable less a thousand.

It's called business.

Answer 7

It business on their part and its ignorance on your part. Plain and simple!