Trade -ins

Got a question here about trading in a your well-used car against a nearly new Mercedes in the showroom.
Does the salesguy expect to make a profit on your car as well as the
main car sale?
I would have thought that the customer's car at book value just represented a lump of finance towards the main deal. Not second profit opportunity.
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Yes, they expect to make some profit on the trade-in as their expense to liquidate your car. It is more like 50/50 chance they can make a profit as some car is just too troublesome or expensive to fix that they ended up in auto auction and will fetch for the trade-in value... more or less.
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The dealership will want to make something off your trade, if they keep it. The salesman only gets a commission on what he/she sells. Some trade-ins look real good on paper, but the car is a dog that will only get wholesaled. In order to allow a high $$ trade-in value, you are getting less $ off the new car price. If you believe you are getting more $$ for your trade-in as it sits, then you are paying more for the new car. If the dealer intends to keep the trade-in, they have to figure in what they believe it will cost to make the car front line material: it may need all new tires, a bumper-to-bumper inspection CPO inspection [if it is MB], complete detail, cosmetic touch ups, etc. A used car has a retail value [high book] and a wholesale value [low book]. They want to give you less than low book. The difference between what they give you and high book minus the reconditioning expense is the profit the dealer makes. The salesperson makes a % of the profit as a commission.

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First, when talking to the salesman, do not mention that you have a trade-in--he will simply crunch numbers in his favor, not yours. Make your best deal sans trade-in. After getting the best price for the car you want, then bring up the trade-in. He won't be able to screw you as hard that way.

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Ha Ha Ha! Now that's a good one. YES, they will try to screw you both ways. When I traded in my near perfect SLK on a new S500 the lying sack of S**T sales manager told me he would have to wholesale my SLK. Of course I knew better. After four hours of negotiations I got my deal done, still got screwed a little but bought it anyway because they have an outstanding service department. Next day when I came back to do some follow up paper work, my used SLK was already in the Mercedes showroom. They didn't even have to wash it. Shows what assh*le liars the sales staff are.
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Got that right. I just purchased a '97 SL500 roadster, but I didn't deal with a salesman at all. I found the car, went to the owner, and paid cash. That's the only way to buy, in my opinion. Been wanting that body style since '91...finally got it.

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