Trade in Mark up?

[JoondalupJ]

If you traded a motor car in for a newer or new model, can anybody say what the percentage is usually added to the car you traded in when they move it through the system or re sell it.
Example say a car that you got 11,000 thousand trade in , what is the in general price a car yard would look to put on it to resell it.
Reputable car sales companies I'm talking about in a general motoring question.
I'm not asking about any one specific company , just a general standard, for some one who doesn't understand it that well I need a round about ball park percentage, to get an idea if I am heading the right way .

 

[WCErevival]

Redbook.com.au gives you private sale price and trade in price guides. Cars selling on a used car dealer are usually a touch above private sale prices. You could be looking at double the trade in price

 

[JoondalupJ]

Redbook.com.au gives you private sale price and trade in price guides. Cars selling on a used car dealer are usually a touch above private sale prices. You could be looking at double the trade in price

Thanks mate.

 

[Scotland]

A lot would depend on what you are trading in vs what you are buying.

If you trade in a used car worth $20k on a new car worth $40k, they might offer you $15k then list it for $20k - for example. The margin available on a new car is fixed to a degree. Bare in mind listing a car doesn't mean getting that price. Some 2nd hand cars sit on lots for months on end.

If you trade in a used car worth $20k on a used car worth $40k, they might offer you $17k then list it for $20k - for example. If there are two identical used cars on a lot for the same price their history will differ. A lot of fleet and leased cars are turned over every 3-4 years pretty cheaply, so there is an opportunity to re-sell them as private vehicles and make a buck. One $40k car may have come in as a private trade-in and another from a leasing company. If there's a couple of grand difference between the two then there's a couple of grand of margin to play with.

If you trade in a shitbox worth $2k then chances are you might get $2k and they'll list it for $2.5k. Or the dealer will just say 'no thanks, I'm not interested in taking it'. There's not a lot of margin in the lower end of the market so dealers rely on volume of turnover. And it depends what you are trading it in on. The dealer's motivation to take something worth $2k if you are buying something $5-10k is a lot less than if you are buying something worth $50k.

I've seen a few examples in the past. A family member was offered a trade in of $10k for a car that a carsales search yielded a private sale range of $15-20k so they sold it privately and got around $15k from memory. No brainer. A friend had a piece of shit that was maybe worth $3k after a fair bit of work (air con wasn't working and a few things like that are obvious turn offs) and was offered $2k so took it. The car ended up on sale about a week later for $2400. No margin in the trade-in because the margin was in the car it was traded in against. A few hundred bucks to not spend your weekends dealing with ****wits on Gumtree is worth it. $5-10k isn't. It's a trade off really. Plus people get sucked into thinking that if there are a bunch of cars listed for $10k and they have one they can just sell it for $10k. Not how it works.

Places used to advertise minimum trade-ins of $2000 or whatever it was but if their cars aren't cheap what's the point? Getting $2000 for a 1985 Camira is great, but if you then spend $20k getting a 2003 Commodore then you are coming out way behind.

Unless you are buying (ordering) something brand new to your spec or an old car that is rare there are enough of most cars around to know what they should cost relative to their age, condition etc.

 

[JoondalupJ]

A lot would depend on what you are trading in vs what you are buying.

If you trade in a used car worth $20k on a new car worth $40k, they might offer you $15k then list it for $20k - for example. The margin available on a new car is fixed to a degree. Bare in mind listing a car doesn't mean getting that price. Some 2nd hand cars sit on lots for months on end.

If you trade in a used car worth $20k on a used car worth $40k, they might offer you $17k then list it for $20k - for example. If there are two identical used cars on a lot for the same price their history will differ. A lot of fleet and leased cars are turned over every 3-4 years pretty cheaply, so there is an opportunity to re-sell them as private vehicles and make a buck. One $40k car may have come in as a private trade-in and another from a leasing company. If there's a couple of grand difference between the two then there's a couple of grand of margin to play with.

If you trade in a shitbox worth $2k then chances are you might get $2k and they'll list it for $2.5k. Or the dealer will just say 'no thanks, I'm not interested in taking it'. There's not a lot of margin in the lower end of the market so dealers rely on volume of turnover. And it depends what you are trading it in on. The dealer's motivation to take something worth $2k if you are buying something $5-10k is a lot less than if you are buying something worth $50k.

I've seen a few examples in the past. A family member was offered a trade in of $10k for a car that a carsales search yielded a private sale range of $15-20k so they sold it privately and got around $15k from memory. No brainer. A friend had a piece of shit that was maybe worth $3k after a fair bit of work (air con wasn't working and a few things like that are obvious turn offs) and was offered $2k so took it. The car ended up on sale about a week later for $2400. No margin in the trade-in because the margin was in the car it was traded in against. A few hundred bucks to not spend your weekends dealing with *******s on Gumtree is worth it. $5-10k isn't. It's a trade off really. Plus people get sucked into thinking that if there are a bunch of cars listed for $10k and they have one they can just sell it for $10k. Not how it works.

Places used to advertise minimum trade-ins of $2000 or whatever it was but if their cars aren't cheap what's the point? Getting $2000 for a 1985 Camira is great, but if you then spend $20k getting a 2003 Commodore then you are coming out way behind.

Unless you are buying (ordering) something brand new to your spec or an old car that is rare there are enough of most cars around to know what they should cost relative to their age, condition etc.

Thanks mate. Good info.