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Trade-in’s are a huge source of income to car dealerships because if managed properly there is little downside and tremendous upside when taking in trades. Dealers pay wholesale for their trade-ins. In addition, they factor in reconditioning expense and future depreciation of the vehicle. In other words – what will the car be worth if they don’t retail it in 60 days and have to wholesale it to another dealer or run it through the auction. It is in their interest to give you as little for your trade as possible.
Sometimes dealers give customers less for a trade-in than it is really worth. This is called an under-allowance. They put it in their inventory for say $11,000 but give you $10,000. That is $1,000 profit for the dealer.
So how do we avoid this? One way is for you to sell your trade-in yourself. You will almost always get more for your trade by selling it to another private party. On the other hand, if you don’t want to invest the time and effort required to advertise, respond to prospects, and process the DMV paper-work, Black Dog will take your car in trade and save you the time and hassle. Black Dog can shop the car around to several potential buyers to maximize your trade-in value. And, it will be a completely separate transaction from the purchase of your new car. No under-allowance for your trade and the lowest price possible for your new car. For an approximation of your car's value, check Kelly Blue Book. It’s that simple.
Have a question about your trade-in? Just ask Dan or call him at 650-289-9169.
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