Cash V Trade in price

Notch000

Hi,
I see a lot of advert like price is 10,000 E & trade in price is 11,000 euro, how does this work, is it like we will take you trade in and charge you a premium price and effectively give you nothing for it ????

Or can you counter and say ok trading in price is 11,0o0 euro so I want 3k trade for my 2k car ?????

Make any sense ??

dar83

Cash price is always going to be lower than if the dealer has to then deal with your trade-in, so they incentivise that. The trade-in price is higher because you'll generally be paying them less in cash along with giving them your old car. They will always dictate the trade-in value of your car, you can haggle and counter offer etc... just as you would normally in any car deal, but that pricing arrangement is always in the dealers favour and for a good reason.

They're basically offsetting the potential loss in cash they may make by increasing the ask if you rock up with a car you want to give them as part-exchange.

colm_mcm

Notch000 wrote: »

Hi,
I see a lot of advert like price is 10,000 E & trade in price is 11,000 euro, how does this work, is it like we will take you trade in and charge you a premium price and effectively give you nothing for it ????

Or can you counter and say ok trading in price is 11,0o0 euro so I want 3k trade for my 2k car ?????

Make any sense ??

10000 is the haggled down "don't even bother asking for more off" price.
Essentially they're saying "if you want to trade something in, youre starting at 11,000 again and negotiate from there"

Notch000

dar83 wrote: »

They're basically offsetting the potential loss in cash they may make by increasing the ask if you rock up with a car you want to give them as part-exchange.

people stupid enough to fall for this ???

colm_mcm

It makes sense to do this though. No point in artificially inflating the listed price on the ad in case someone wants a nice trade in price.

Back in the day you had POA which meant the dealer could just pull a figure out of the sky for the car they're selling based on what you were trading in

dar83

It's not falling for anything though, it's just a business tactic as I explained. As Colm has said, at least they're being upfront about it and giving you the lay of the land before you contact them. You know the cash price already and you know the price your trade-in will be put against.

They could just put the higher amount on the ad and then let that be it, but it's more appealing to put the lower price on the outside and entice people in and then hit them with the "oh this is a straight cash price" line. It's marketing 101 really.

Wild Garlic

dar83 wrote: »

It's not falling for anything though, it's just a business tactic as I explained. As Colm has said, at least they're being upfront about it and giving you the lay of the land before you contact them. You know the cash price already and you know the price your trade-in will be put against.

They could just put the higher amount on the ad and then let that be it, but it's more appealing to put the lower price on the outside and entice people in and then hit them with the "oh this is a straight cash price" line. It's marketing 101 really.

So why don't they all do it then?

colm_mcm

Selling cars in Ireland is ridiculous in some ways. Nobody wants to pay full price for anything - even if it's the cheapest and best example available.
This creates so much extra work.

George Dalton

Wild Garlic wrote: »

So why don't they all do it then?

Because some people prefer to be told that they are getting a fictional €X for their trade in. Even if the cost to change is higher than another garage who were only allowing €X-1000.