I would especially appreciate hearing from those who have worked automotive sales. Thanks to all who respond.
2007-12-21 13:16:23 · 0 answers · asked by Mike S 7 in Cars & Transportation ➔ Buying & Selling
The dealer is only going to pay wholesale (what they can buy the same car for at auction) They may give you an "over allowance" on the trade, which is actually giving you a discount on your new car.
For example:
New car list price $30,000
Dealer is willing to take $29,000
Trade Wholesale value $5000
The dealer can sell you the car for $30,000 and give you $6000 for your trade for a difference of $24,000. They can sell you the car for $29,000 and give you $5000 in trade, again with a $24,000 difference!
They could actually sell you the car for $24,001 and give you one dollar for your car, and the deal would be the same!
A dealer can play with the numbers to make the deal look good to you, but all you get for your trade in is wholesale value!!
2007-12-21 13:29:46 · answer #1 · answered by fire4511 7 · 4⤊ 0⤋
In total the average wholesale price is below the average trade-in price. An NADA book will show that as they list wholesale, trade-in and retail prices.
The percentage difference may vary between vehicles, the local market conditions, and the amount the dealer will pay for a trade. The dealer trade-in price could vary by week, ie this week they want your car, next week, they don't need it as much.
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2007-12-21 18:43:51 · answer #2 · answered by Gatsby216 7 · 0⤊ 3⤋
Myself I'd never trade a car in, they give the bare minimum, make it look good to you by playing with the numbers, but in the end you usually end up getting a lot less than the minimum even you would want for it. Sell it out right at retail on the public market, then bring the cah for your downpayment for your car. You can then have the better end and get a better price. Even whe they say the'll give you what you owe, if it's more than wholesale value, they pay it off for you but then add the loss difference to your new car's total price, making your new car a lot more expensive!
2007-12-21 14:18:27 · answer #3 · answered by Camelot 1 · 1⤊ 2⤋
true dealer cost is thousands below trade-in and private party values, this is a hidden secret in the dealer community that made the dealers multi-million dollar dealerships
http://www.kbbdealer.com will give a real dealer wholesale value
2014-04-05 19:30:50 · answer #4 · answered by na 2 · 0⤊ 0⤋
--->> Tips---> https://trimurl.im/f6/is-the-car-dealer-39-s-wholesale-price-typically-above-or-below-the-customer-trade-in-price
2015-08-04 16:15:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋