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Trade-Ins “Trade-in talk includes phrases like under allowance, over allowance, actual cash value, low book value, high book value and payoff amount. And all that talk is the perfect smoke screen for hidden dealer profit.”
Here’s what you need to know if you’re going to trade your car in. First, the used car manager is going to appraise your car in order to sell it to the biggest available market. The biggest available market is people who have to borrow money to buy a car. Therefore, the used car manager has to buy your car far enough back of book so it can be sold at a profit in every column of finance. That’s the used car manager’s exit strategy; buy your trade as inexpensively as possible so that the largest number of potential buyers can buy it with big profits for the dealership. The dealer is not going to be buried in your trade. So, if you’re choosing to trade your old car in, hopefully you had the right exit strategy when you bought it and you won’t bury yourself in your new purchase (by adding to your new car loan what was left to be paid on your old car loan).
To learn exactly how to get the most for trade-in, read...
Kick the Dealer...Not the Tires!
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