- First Name
- Zach
- Joined
- Aug 4, 2020
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- 30
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- 949
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- Location
- Granger, IA
- Website
- www.grangerford.com
- Vehicles
- *
- Occupation
- Principal at Granger Motors
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- #1
I have been asked this question numerous times, so I decided to make a post all its own, so it does not get lost in the thread jungle.
I will be using 3 scenarios as they have played out here on the Forum.
For the base line I will be using a trade in that has:
As you can see in the example (simplistic for sure) that your main concern should not be the trade in “value” but the trade difference as that is what you pay for the vehicle less your trade in..
To equal Dealer C’s price:
Therefore, I say that there are 2 transaction when trading in a vehicle and buying another.
We are selling you one and you are selling us one...
I will be using 3 scenarios as they have played out here on the Forum.
For the base line I will be using a trade in that has:
- KBB retail value of $12,500
- KBB trade value of $10,000
- a wholesale (ACV) of $8,500
- $45,115 - MSRP – window sticker
- $43,304 - Invoice
- $43,406 - X-Plan
- Dealer A - Full retail MSRP no discounts
- Dealer B - X Plan pricing
- Dealer C - Granger Ford example
- $1000 under invoice
Dealer A | Dealer C | Dealer B | ||
* $1,000 under invoice | ||||
Sale Price | 45,115 | 42,304 | 43,406 | |
Trade "value" | 10,500 | 8,500 | 8,500 | |
Trade Difference | 34,615 | 33,804 | 34,906 | |
As you can see in the example (simplistic for sure) that your main concern should not be the trade in “value” but the trade difference as that is what you pay for the vehicle less your trade in..
To equal Dealer C’s price:
- Dealer A would need to “show” a trade value of $11,311 for the same deal as Dealer C
- Dealer B would need to "show" a trade value of $9,602 for the same deal as Dealer C
Dealer A | Dealer C | Dealer B | ||
* $1,000 under invoice | ||||
Sale Price | 45,115 | 42,304 | 43,406 | |
Trade "value" | 11,311 | 8,500 | 9,602 | |
Trade Difference | 33,804 | 33,804 | 33,804 |
Therefore, I say that there are 2 transaction when trading in a vehicle and buying another.
We are selling you one and you are selling us one...
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