Trade in Value

[socalvn]

Just sold my 22 GT-Line with 43k miles for 22k to the dealer on a trade in there reselling the car for $29K bought a subcompact SUV

 

[JSolo]

What was carmax/carvana/vroom offering?

I suppose one benefit of trading it is the sales tax credit.

Dealing making a nice profit at resale. Why'd you get rid of it? Seems a subcompact suv would have less interior space than the stinger, no?

PS. Punctuation is your friend.

 

[Ah GetFd]

What was carmax/carvana/vroom offering?

I suppose one benefit of trading it is the sales tax credit.

Dealing making a nice profit at resale. Why'd you get rid of it? Seems a subcompact suv would have less interior space than the stinger, no?

PS. Punctuation is your friend.

People doing replies on a cell phone dont bother with punctuation.

Sicentists at Cmabridge Uinversity dtermined that as lnog as the frist and last lettres are in odrer poeple can sitll raed a snetence.........

That is an absolutely normal resell price for a car with a market value of $22K PLUS dealer overheads.

A dealer needs to make at least 29K.

Before any profit is taken there are dealer expenses

A Premises with facilities, Parking Lot for vehicles, Signage, Advertising, Driveway, Asphalt, Concrete, Fencing, Bollards,
Security System, Security, Lighting, General Light and Power. Heating, Rest Room, Kitchen
Reception
Admin staff
Finance staff
Stock Control
Rent/Lease/ Staff
Ownership of Premises, Lease, Rent, Loans, Overdraft
Sales Staff, salary, sick leave, annual leave
Repairs to trade in, Workshop Inspection
Preparation for sale.
3 months sitting there until it gets sold.
and finally a profit margin.

This is why a private seller can and should never seek a dealer price unless they add the cost of overheads they dont have.

If a dealer added $5000 to the trade in price they would make NO MONEY.

When the next buyer takes that car for $29K and brings it back in 5 years it has to be worth the last trade in price of $22K (not $29K) LESS five years. Depreciates $2K a year. The car is now worth $12K. That's the next trade in price.

And this is where people get it wrong. They think the car is still worth $29K minus $5K say $24K

The car's market value is $12K and the dealer will mark it up again to recover all those costs again plus a margin.