Trade-in Price vs Retail Price

hey all, when buying a new car recently I found that it was cheaper to buy without a trade-in than with one. The car I bought was advertised for 20kin the garage. When he realised that I hadn't a trade-in, he said that the advertised price was for with trade in and the "retail price" was actually 19k. Is that normal practice? I would never have known only I said 20k was too much....

I think this is normal practice, yes.

I guess there is not definitive answer on the price? It's a pity, because somebody else could have come along without a trade-in and not known this...and get ripped off.

trailblazer said:

I guess there is not definitive answer on the price? It's a pity, because somebody else could have come along without a trade-in and not known this...and get ripped off.

Click to expand...

It's not a rip-off and it makes perfect sense. Someone trading in will generally pay the full list price, while a 'cash customer' will usually get a discount. When giving the trade-in, the retailer has to make two sales in order to make their margin. Conversely, with a 'cash customer' it's a single clean transaction and the retailer takes their profit. When trading in the customer loses out on two fronts but it's their choice. They could achieve a higher price by selling their car privately and could get a discount by doing a straight deal for the new car.

Thanks Rambo.

I bought a car a few years ago from a garage - a second hand car - and when I asked him what he would do for me for cash and that I had no trade in the guy knocked a grand off the asking price.

yeah cash is king and Rambo is right..trade ins are hassel for the dealers so they incorporate into the retail price..sell it yourself