Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - I'm a car salesmen, Go ahead and ask me anything

the-rasta-masta · 12-05-2017, 09:10 PM

Old thread, but relevant title. Apologies if the Bump offends. I'm looking at trading in a vehicle, and am looking for some advice on what percentage a dealership is typically looking to make off a trade in.

For example, based on a several comparables, I'm confident that they will sell my car for 50k, and they are offering me 41k plus a GST tax credit of 5%. So all in it works out to $43,050. Two Questions:

1- Does offering this tax credit really cost the dealership anything? Or is this just technically removing the trade in value from the full GST cost of the new vehicle?

2- If I'm looking at the above correctly, and the dealer sells my car for $50k, they are looking at an 18% profit off my trade in for what it costs them at $41k. What range is typically expected?

I realize it's likely easier for me to sell privately for $50k. I'm just trying to determine what I should go back to them and if that would be worth the trade off for my time of selling it privately.

Thanks in advance for any help!

12-05-2017, 09:10 PM	#1056
the-rasta-masta First Line Centre Join Date: Oct 2002 Location: Turner Valley Exp:	Old thread, but relevant title. Apologies if the Bump offends. I'm looking at trading in a vehicle, and am looking for some advice on what percentage a dealership is typically looking to make off a trade in. For example, based on a several comparables, I'm confident that they will sell my car for 50k, and they are offering me 41k plus a GST tax credit of 5%. So all in it works out to $43,050. Two Questions: 1- Does offering this tax credit really cost the dealership anything? Or is this just technically removing the trade in value from the full GST cost of the new vehicle? 2- If I'm looking at the above correctly, and the dealer sells my car for $50k, they are looking at an 18% profit off my trade in for what it costs them at $41k. What range is typically expected? I realize it's likely easier for me to sell privately for $50k. I'm just trying to determine what I should go back to them and if that would be worth the trade off for my time of selling it privately. Thanks in advance for any help!