Typical margin dealer makes on trade in

Man007

Hi there

Would appreciate a bit of advice regarding how much I should expect to receive for a trade in and the typical margin or profit that a dealer would expect to make.

My car is 2.5 years old with 26k kms top spec and immaculate.

There's at least 4 similar cars on main dealer websites although all have at least double the mileage and are one level below spec wise no leather and other extras and they range between 18k and 20k.

What should I expect as a reasonable trade in value I was offered 16.5 from dealer I bought from if trading up the problem is I want to go with another manufacturer and so far I have been offered 11k and 13k.

I have asked original dealer would they be interested in taking the car despite the fact not buying again from them and am waiting on a number

Any advice appreciated thanks

carsfan2

I think you will have to tell us what the car is and what spec it is also what you are looking to buy?
All these factors will influence what your car is worth and what a dealer will tell you he is giving you for it.
Also would be very surprised if original dealer will but the car straight from you for an acceptable price if at all.

Man007

carsfan2 wrote: »

I think you will have to tell us what the car is and what spec it is also what you are looking to buy?
All these factors will influence what your car is worth and what a dealer will tell you he is giving you for it.
Also would be very surprised if original dealer will but the car straight from you for an acceptable price if at all.

Sorry should have said it's a Mazda 3 Platinum full leather

Was originally looking to trade up to Mazda 6 and first garage was allowing me 18.3k against the car but I'm thinking of trading up to either a Jag Xe or a BMW 320D

Forge83

Sell the car privately.
If they are making 18-20k as you say, then it should sell easy enough if advertised at 16k.

Del2005

Forge83 wrote: »

Sell the car privately.
If they are making 18-20k as you say, then it should sell easy enough if advertised at 16k.

16k is at the high end for private buying, it's a lot of money for near zero comeback.

OP don't worry about the amount you are getting for trade in, it's the cost to change that counts. The dealer offering the most for trade in could well be the most expensive to buy from.

Man007

Forge83 wrote: »

Sell the car privately.
If they are making 18-20k as you say, then it should sell easy enough if advertised at 16k.

Yeah that's the next course of action I'm visiting another 2 garages over the weekend so if no joy will look to sell privately just wanted to get an idea of what margin is reasonable for garage to make before negotiating again.

Only thing I'd be worried about selling privately is the amount of time it will take

bazz26

You need to compare like with like. Compare the trade in value against one type of car against different dealers of that car. You also have to look at the real value of the car you are trading in against. A BMW 320d or Jaguar XE are retailing at a good bit more than a Mazda 6 so the BMW or Jaguar dealer may allow you more for your trade-in than the Mazda dealer has to play with against the cheaper Mazda 6.

Man007

bazz26 wrote: »

You need to compare like with like. Compare the trade in value against one type of car against different dealers of that car. You also have to look at the real value of the car you are trading in against. A BMW 320d or Jaguar XE are retailing at a good bit more than a Mazda 6 so the BMW or Jaguar dealer may allow you more for your trade-in than the Mazda dealer has to play with against the cheaper Mazda 6.

It's actually the opposite that's the problem mazda offering between 16-18k Jag and BMW offering between 11-13k saying they are selling it off to the trade

Sam Russell

Man007 wrote: »

It's actually the opposite that's the problem mazda offering between 16-18k Jag and BMW offering between 11-13k saying they are selling it off to the trade

The Mazda dealer would be happy to resell the car on their forecourt and so reckons he can afford to pay more. He may actually have a buyer looking for a car like yours. The BMW or Jag dealer would sell to a second level dealer at a trade price.

If you are not in a hurry, try selling it privately at a price you would be happy with, and price the BMW or Jag as a straight (cash) deal. See if it is worth it.

carsfan2

If you decide on say the BMW, you might get a better trade in by going to a multi franchise dealer like joe Duffy who have a Mazda dealership as well as BMW.
They would be able to retail your car in their own network and may give a better value for it as a result.
Selling privately might be hard work.

TitianGerm

Man007 wrote: »

Hi there

Would appreciate a bit of advice regarding how much I should expect to receive for a trade in and the typical margin or profit that a dealer would expect to make.

My car is 2.5 years old with 26k kms top spec and immaculate.

There's at least 4 similar cars on main dealer websites although all have at least double the mileage and are one level below spec wise no leather and other extras and they range between 18k and 20k.

What should I expect as a reasonable trade in value I was offered 16.5 from dealer I bought from if trading up the problem is I want to go with another manufacturer and so far I have been offered 11k and 13k.

I have asked original dealer would they be interested in taking the car despite the fact not buying again from them and am waiting on a number

Any advice appreciated thanks

Is yours the 2.0L petrol or 2.2L diesel?

Man007

emmetkenny wrote: »

Is yours the 2.0L petrol or 2.2L diesel?

2.2 Diesel

TitianGerm

Man007 wrote: »

2.2 Diesel

What's it like to drive? I saw a few people in here mention that the engine may not be overly reliable?

It's a big improvement over previous Mazda in term of styling though.

Man007

emmetkenny wrote: »

What's it like to drive? I saw a few people in here mention that the engine may not be overly reliable?

It's a big improvement over previous Mazda in term of styling though.

I find it really nice to drive nice bit of acceleration and is enjoyable

I hadn't heard of reliability issues I've had no problems but I've only had it less than 3 years maybe right choice to change before warranty is up of that's the case.

I had my heart set on mazda 6 but after test driving the 3 is much nicer to drive so can't justify the extra €7k same with the cx 5.

If I don't get any better offers on the car I'd be happy enough to keep it.

Delacent

Find out the price of the car you want if buying straight without a trade-in. (probably about 6% - 10% discount)

Deduct this from the trade-in value and you have the real price the garage is paying.

I have previously found that buying as a straight deal and selling the other car through an auction gets best overall value with minimal hassle.