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Car dealer formula for arriving at trade difference dollars.

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Car dealer formula for arriving at trade difference dollars. does he use his retail and your wholesale cost?....Jim
Submitted: 4 years ago.
Category: General
Expert:  Walt-mod replied 3 years ago.
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Expert:  TaxTom replied 3 years ago.
Hello, Most dealers use a wholesale "black" book to value your trade-in and their car is valued at retail and sometimes as much as 10% more then retail if it is a popular model. Unless your car is prefect condition it usually will be worth less than retail. Best way to value the detail is to check what average retail in on a site like Kelley http://www.kbb.com/?psid=3-1346-45064-5158-26148-1&sissr=1&siomid=SI_213000507_26758165_1 and value yours at private party sale and if the difference is close to the price the dealer is offering than it is probably a good deal. You can usually do a little better by selling your trade-in yourself but it may not be worth the hassle. Thanks Tom
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