Have you ever gotten a headache trying to purchase a vehicle? Most people find it a nerve racking and confusing experience.It is meant to be, but if you understand the game going on, you can play it successfully. Almost everybody in a dealership is paid on some sort of commission. It is their job to try a make as much money as they can from you. It is easier to do that if you aren’t aware of the what is really going on.
A neighbor called me last week and asked me if he was getting “taken” on his trade in. The dealership was offering him $5500 trade value for his truck. That is $4500 below “Blue Book”. The truck had 430 thousand miles on it. The “book” doesn’t buy vehicles and is only a guideline, it can’t accurately say what a 400k + truck is worth. Besides, the consumer versions of the auto guidebooks are different from the ones the dealers use. I thought the offer was fair, considering the miles on his vehicle. Who could they sell it to? Who would finance it? You don’t get what you think you did for your trade in anyway! Dealers use “actual cash value” or ACV on their internal paperwork,what they really have in yor trade. The amount you see on your deal purchase order is an inflated amount, it is called what they “showed” you for your trade. The retail price is inflated in such a way so that they have room to “show” you a value for your car and still make a generous profit, and you think you got a good price for yours.It is also to cover over-allowance for upside down trade ins.
If you want to know what your vehicle is really worth, go to a couple of the big dealerships that advertise they”ll buy your car outright, without selling you one. That will be what your car is worth ,that day, in real numbers. The whole process is designed to distract and confuse you. The real truth is you should be aware what your vehicle, and theirs, are really worth. Invoice isn’t real on new cars and cost isn’t true on used . If they “show” you $10k for yours and get $20k for theirs, if yours is really worth$ 7k and theirs $15k, you lost $2k. Once you know that, just work on the difference that you think is fair, then stick to that offer. They need to sell that vehicle more than you need to buy it from them. Ignore all the smoke and mirrors. If you don’t get the deal you want, leave. It is really that simple!