Trade-In
Maximizing Your Trade-In Value at Sam Auto Buying Club
At Sam Auto Buying Club, understanding the trade-in process is crucial to getting the best deal. When you trade in a vehicle, it’s easy to lose sight of the actual value you’re receiving in the overall transaction. Many people focus solely on the trade-in value or the sale price of the new vehicle, overlooking the bottom line number that truly matters.
Every traded-in car has an ACV (actual cash value), which represents its true worth to the dealer. If the dealer decides to resell the vehicle, their cost will be the ACV plus any
expenses incurred to prepare it for sale. Alternatively, if they opt to send it to auction or sell it wholesale, the ACV sets the baseline for their potential profit.
When dealers present numbers to customers, they often show a trade-in allowance. This can be used to manipulate the sale price to appear lower than it actually is, or to inflate the trade-in value beyond the vehicle’s true worth.
Consider this example: If a dealership sells you a vehicle for $25,000 and offers $5,000 for your trade-in, your effective cost is $20,000. Alternatively, they might sell you the same vehicle for $30,000 but offer $10,000 for your trade-in, still resulting in a $20,000 bottom line. Both scenarios yield the same overall cost, but one reduces the sale price while the other increases the trade-in value.
To navigate this process effectively, focus on your bottom line. Research the dealer invoice and the wholesale value of your vehicle before negotiating. This preparation ensures you have a clear target for what your true cost should be, helping you secure the best possible deal
Let an auto broker car buying service negotiate your trade-in.
Looking to trade-in a vehicle towards a used car purchase? Let Cahpow handle your trade-in. Working with a trade can be a lot simpler then you think. All we need from you is the year, make, model, miles and equipment on the vehicle. Depending on the year and miles we may also require a couple photos of your vehicle so we can gauge the condition of the car. From there we do all the heavy lifting and get you the best possible trade-in value. It’s that simple! Let your car buying agent work for you to get the best deal.