The trade-ins are also re-sold, so they have a little latitude on what they can offer for trade in.
I wondered that myself when I traded up. I think it has to do with the way money is budgeted, the various incentives that a dealer is given. Different pots of money and allowances between trade-ins, factory incentives, dealer incentives... the factory incentives don't come out of the dealer's pocket. The trade-ins are also re-sold, so they have a little latitude on what they can offer for trade in.
Why would a car dealer increase a trade in value instead of dropping the new car price? Is it any difference for them? As a purchaser it's all the same in the end. Just curious if there is a benefit for the seller.
Why would a car dealer increase a trade in value instead of dropping the new car price? Is it any difference for them? As a purchaser it's all the same in the end. Just curious if there is a benefit for the seller.