How Trade-Ins Hide Overpriced Deals
How trade-ins hide overpriced deals in the US—dealer inflates trade allowance and new-car price so you don't see true numbers.
Trade-ins in the U.S. can hide overpriced deals when the dealer bundles "trade allowance" with new-car price—you see a big trade number but the new car is overpriced, or trade is undervalued and price is inflated. Here's how trade-ins hide overpriced deals.
TL;DR Dealer may say "we'll give you $X for your trade" and raise new-car price, or give a high "trade allowance" but low actual trade value. Negotiate new-car OTD first (without trade), then trade value separately. Use autopremo.com OTD calculator, price checker, and trade-in calculator. Use autopremo.com.Bundling Hides True Numbers
When trade and new-car price are bundled, you don't see: true new-car price, true trade value. Dealer can overprice the new car and "give" you a high trade allowance—or undervalue trade and "discount" the new car. Use autopremo.com price checker and trade-in calculator to know both. Get your numbers at autopremo.com.
Negotiate Separately
Negotiate new-car out-the-door price first (as if no trade). Then negotiate trade value. Compare trade value to market with autopremo.com trade-in calculator. Use autopremo.com. See trade at autopremo.com.
Bottom Line
Trade-ins hide overpriced deals when bundled. Negotiate new-car OTD first, then trade value separately; use autopremo.com OTD calculator, price checker, and trade-in calculator so you see true numbers.