They offer less.... That's why dealers like trade-in (unless the market is saturated with second-hand car as it seems to be a the moment)...They sell you a new car full price and buy your old car way below the market value.
Is this a serious question? Do you honestly expect a garage to give you full market value for your trade in, them expect them to house the car until it is sold, valet it, give a warranty with it all at their own cost?
They offer less.... That's why dealers like trade-in (unless the market is saturated with second-hand car as it seems to be a the moment)...They sell you a new car full price and buy your old car way below the market value.
when you say way below, roughly how much less in terms of percentage?
So they profit three ways then!! - charge you more for your new car(because they have to take a trade in - which, lets not forget they can still sell) give you less then your car is worth, and sell your trade-in at a profit anyway!!
Recently I had adopted the following approach:
Buy a car at 3 years old and keep if for 2 - trading up for the next one - as it seemed to be the most economical approach. (previousy I have always sold privatlely)
am starting to wonder if this is the best approach...
well yes and no - was fully expecting to be offered less than market value, just wasn't sure how much less - I was making the point that if you are being offered substantially less, the grarage shouldn't also charge you more for your new car. (this is all assuming trade-in has no problems or work needed etc)
The advice on here is always sell your car privately you will get more for it, then you can negotiate with the salesman on a straight deal. You win both ways and the garage doesnt end up with a trade in it may struggle to sell.
A dealer is in business to make money. They will sell expensively (full list if they can get away with it) and will buy as cheaply as they can (offering under value on a trade in).
It took me three months to privately sell 2003 car, because the trade in was lower than a market value of my old car. I got a substantial cash discount and a few free extras for the new one but I would never again hang on to the old car. Trade in all the way....