Trading in a car when purchasing

Monello

Awww, jeez
PREMO Member
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.
 
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.
 

RoseRed

American Beauty
PREMO Member
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.
A co-worker recently traded in her car for an upgrade. She later saw her old car for sale for more than what they gave her for it initially.
 

calvcopf

Active Member
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.
Better commission for the salesman.
 

Chris0nllyn

Well-Known Member
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.
Couple reasons.

In case the trade gets removed from the deal and because people generally think their car is worth more in trade-in value.
 
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