Quote:
Originally Posted by the-rasta-masta
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!
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1. No doesn’t cost the dealer anything.
2. They will have to do a little re conditioning, plus if they put it up for 50k they need to account for negotiating room.
You can make more money selling it yourself obviously. But sometimes it’s a friggin pita especially on a higher end vehicle