QuestionIf I am buying (or leasing) a new car with a trade-in, one thing stumps me. If I first negotiate the price of the new car and it seems like a great deal, won't they just offer me less for the trade-in to make up for it? Vice versa, if they offer me a great price for my trade-in, won't they just up the price of the new vehicle? How would I prevent either from happening, or can I? Thanks
AnswerHi Lee ....The short answer to your question is ....YUP!
Now here is how you beat them. There are 3 ways a dealer can beat you ...and it only takes 1 to get the job done. In your case you are potentially giving them all 3.
#1 Price - If it's a new car then you will be able to figure out what the invoice number is which will take this club away from them ...if it's a used car ...not so much.
#2 Trade In - The smart way to handle a trade in club is to not have one ...the smartest thing to do will not only take that club away but will also put a couple of extra thousand dollars in your pocket is to SELL THE TRADE YOURSELF ON CRAIGS LIST ... that way you will be getting close to a retail figure for your trade and will be buying theirs at or near wholesale or cost. In other words you will be doing exactly what they would like to do to you. Trust me when I tell you that if you have a trade that they will make more money (if it's paid for or has equity in it) than they otherwise would.
#3 Financing- You didn't mention financing but anyone with the credit to lease a new car has the credit to get a credit union to finance you and give you a pre approval at a lower rate than they will likely be wanting to write the deal at.
I have sold new cars and trucks where the price was a dead 2,800.00 bleeder for us but because they had a trade and because they financed through us we were able to turn a 2800 loser into a 4700 winner...
Let me know if you have any follow up questions ...I am with you until you can give me perfect ratings and maximum bonus points :)
Roger
