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.
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
In order to allow a high $$ trade-in value, you are getting less $ off the new
If you believe you are getting more $$ 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 [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
The salesperson makes a % of the profit as a commission.
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.
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
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.
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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