The sales person will list information regarding the buyers trade-in e.g. Year, Make, Model in this Section. The number and amount monthly payments still outstanding on the trade-in, if applicable, will also be listed along with the total amount still outstanding.
The salesman will submit the information regarding the trade-in to the sales desk to determine the value “hit price” of the used vehicle. He may use this “hit price” or a lower price to begin the negotiations.
Buyer Tip: Dealers make a lot of money from a buyer’s trade-in. In industry lingo it’s called “stealing the trade”. Expect the dealership to initially offer you significantly less than what is shown on the Autobytel www.autobytel.com, Edmunds www.edmunds.com, and Intelliprice www.intelliprice.com.
The sales person will often try to deflect the lower offer by the interjection a third party into the negotiations. This is just a distraction technique.
Classic Dealership One-Liners.
“The auction is only offering $XXXX for this vehicle.”
Comment: The dealership not the auction is buying the used vehicle from the buyer.
“We bought a similar vehicle last week with lower mileage for significantly less.”
Comment: Wow … they are doing you a favor!
“We will take any vehicle in as a trade-in no matter how much you owe?”
Comment: Maybe ... but you will continue to payoff your trade-in as part of the monthly payment for your new vehicle.
Buyer Tip: The buyer can challenge the hit price, the initial price offer the buyer, if they have included the Autobytel www.autobytel.com, Edmunds www.edmunds.com, and Intelliprice www.intelliprice.com “trade-in” reports in their Buyer Information Folder. See Valuing Your Trade-in.
Buyer Question: Why does the dealer value on their Autobytel www.autobytel.com, Edmunds www.edmunds.com, and Intelliprice www.intelliprice.com reports differ from my reports?
Dealership Trick: Sales people have been known to print out a copy of the Autobytel www.autobytel.com, Edmunds www.edmunds.com, and Intelliprice www.intelliprice.com reports using the correct vehicle information but using an area with lower trade-in values e.g. Wisconsin.
Buyer Tip: Check the upper right hand corner of the KBB report or the middle section of the Edmunds’ report to determine the area they used. It should be your area or zip code.
Dealership Trick: The Dealership will sometimes want to test drive the trade-in before deciding on a value. After the test drive they will sometimes keep the keys, misplace the keys or misplace the trade-in all in an attempt to keep the buyer hostage during the negotiations.
Buyer Tip: Always ask the sales person for the keys to your trade-in after the test drive. Remember you still own it until you successfully complete the negotiations for the new vehicle.
Buyer Tip: Always clean up your trade-in before visiting the dealership. A dirty messy vehicle will indicate to the dealership you don’t place much value in your vehicle.
Buyer Tip: Don’t clean out the trunk or the glove box of your vehicle before going to the dealership. This will indicate to the dealership you are extremely anxious to dispose of your current vehicle and buy a new one.
“Trade-in pricing from Autobytel/Edmunds/Intelliprice/KBB change every month on the XXth.”
Comment: Hmmm ….just happens xxth is today and you printed those reports last night! Not!
“Those reports never reflect the value of trade-ins for this area.”
Comment: Actually the purpose of these independent services is to reflect the value of trade-ins for each area.
“The Autobytel/Edmunds/Intelliprice/KBB reports the dealership buys are more accurate than the free reports available to the general public.”
Comment: Dealerships use the same reports as the general public.
“We are currently in the middle of a used vehicle glut which is not reflected in the Autobytel/Edmunds/Intelliprice/KBB trade-in values.”
Comment: Vehicle market is always in the middle of a used vehicle glut! Not!
“We have to deduct $XXXX from the report for reconditioning of your vehicle.”
Comment: Reconditioning your vehicle is a dealership cost of doing business.
Deductions for Minor Problems
The dealer may deduct excessive amounts from the value of your trade-in due to non-normal wear and tear problems.
Buyer Tip: Before you go to the dealership determine the cost of repairing these issues, if applicable, to the trade-in so you will know if the deductions for these problems are appropriate or excessive. See Valuing Your Trade-in.
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