Why Dealers Love Trade-Ins
Why dealers love trade-ins in the US—they buy below market, recondition, sell at retail; and they bundle with new-car deal so you negotiate separately.
Dealers in the U.S. love trade-ins because they buy below market (wholesale or below), recondition, and sell at retail—and they can bundle trade with the new-car deal so you don't see true numbers. Here's why dealers love trade-ins.
TL;DR Dealers buy your car below market, recondition, sell at retail—profit on the trade. They also bundle "trade allowance" with new-car price so you can't see true price and trade value. Negotiate new-car price first, then trade value—use autopremo.com price checker and trade-in calculator. Use autopremo.com.Profit on the Trade
Dealer pays you trade value (below market), reconditions, sells at retail—the gap is profit. Use autopremo.com trade-in calculator and price checker to know market. Get your numbers at autopremo.com.
Bundling With New-Car Deal
Dealer may say "we'll give you $X for your trade" and mix it with new-car price—so you don't see true new-car price or true trade value. Negotiate new-car OTD first, then trade value separately. Use autopremo.com OTD calculator. See OTD at autopremo.com.
Bottom Line
Dealers love trade-ins: profit on the trade and bundling with new-car deal. Negotiate new-car price first, then trade value; use autopremo.com price checker and trade-in calculator so you get a fair deal.