Quote:
Originally Posted by Airedale1
The point is that you need to know what your car will bring to them and allow for them to make a profit on it and stand firm. Good luck!
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All can be complicated as to price of new car. Dealer cost, invoice cost, MSRP sticker price, 4% hold back, etc. And then local regional incentives, rebates, 0% financing (cost of money)etc.
Just to use some hypothetical round numbers. Fake numbers to make a point.
A $30,000 MSRP cost the dealer $27,000. 10% off the MSRP.
You have a complete clunker with engine and transmission failing with all sorts of other problems.
You go to trade it in and the dealer offers you $2,500 off MSRP for your car as a trade.
Wow! The dealer gave you a real good deal and a lot for your old clunker as a trade in. The new car dealer gave you $2,500 for a car that is worth $200.00 from a junk yard. You got a real good deal.
Or did you?
When in fact, if you walked in and offered the new car dealer $27,200.00 without a trade in you cold have purchased that new car without any trade in.
So what did the dealer actually give you for your trade in in real money?
These are fake numbers but do make a point about trade ins.
To obtain the real value of your trade in is to visit new car dealer. Park way away from showroom.
Make the best deal you can for the car you want. Obviously, as stated above, find out what this new car is selling for or worth.
Once you have made the best deal and you agree that this new car is worth the agreed upon price - then - and only then - do you tell dealer you want to trade in your old car. Sitting way over at far end of lot.
This is the only way you will find out what your trade in is worth in real money.
Only then, do you decide whether to sell yourself or trade in.