Trading make the Deal Sweeter!

I love to take trades in for cars I have for sale but let me explain how the big Dealers do this process.

First you have the salesman that is pricing the car for a Retail price. You have the sales manager and you have the wholesaler who  appraises ACV (actual cash value) of the car. A wholesalers never gives the amount he speculates he can retail the car for. He is only concerned with what the car would bring cash at the very next auction. As a matter of fact he is often compensated on his knowledge of the wholesale value of the car. It is the used car manager who will decide if the car is kept for retail or sent to the auction for cash liquidation.

What the wholesaler will appraise the car will consist of all the repairs needed to make the car retail able. He will take into consideration first tires, detailing, oil changes, mechanical issues. He will deduct all these charges for the actual cash value of the car.

We often call this in the business "steal the trade". This is a huge way to make big money on a single purchase. One car can make you thousands on the trades. I often give $500 or $600 for a trade and sell them for $2,000. The car buyer wants what you have and is very willing to give what he has away to get it.

I recently had a 2000 Crysler Van on Craigslist for $2000. I paid at the Auction with auction fees $565. A man called me up and told me he had $1500 cash. I asked him if he had a trade? He said yes but it wasn't much. He said he did not like it, but it ran. I said I would take his $1500 and his van. He jumped at the chance to get my van. He brought his van and $1500. I sold his van the next day for $1000. So instead of getting my asking price of $2,000 I ended up getting $2500 through my trading.