trade in value

[porkchop]

The price you trade in you car for is not the price the dealer sells your car for on to the next buyer. Does anyone know what percentage of the trade in value does the dealer add on to sell your car. It looks to me that the dealer has you everway. Your suggestions would be welcome.

[gingejbee]

I'm not sure that there is a fixed percentage that the dealer adds on; he will give you as little as possible for your car and will put it on sale for as much as he can. If it doesn't sell, the price will be reduced; but the dealer will want to maximise his profits (and don't forget the overheads and any warranty that is offered - it all has to be paid for).

[TWR]

It varies from garage to garage Porkchop, depends how greedy they are! & they are all greedy. lol lol

[Tim123]

The dealer is only interested the value of the transaction as a whole. There are two elements in this, the cash you give him, and what he considers your old car to be worth as an asset. Some dealers will give you more for your old car than its asset value, but compensate by giving you a minimal discount on the new one. Others will discount the new car heavily, but offer a lower figure for the trade in. It all depends upon which strategy they think is more likely to maximise the amount of cash you are prepared to hand over to close the deal. When they sell your old car, the same factors may come into play, so they could well be happy to sell it for a supposed sum that is less than they appear to have paid for it.