Why is my trade in value so high?
I have a 2002 Flagstaff 228 popup that I bought in 2007 from the original owner for $4500.00. I was quoted in writing a trade in value of $5000.00 when I was looking.at used class c motorhomes at ...
Forum Discussion
ford truck guy wrote:
It all depends on the Out The Door cost,,, IF you are getting a higher trade in , that tells me that you are paying more for the new unit.. That said - it also means that you will have less tax to pay ,as the trade value comes off the top.
Ummm, I'm not sure that's correct at all.
If they raise the trade-in by $3,000 and raise the sale price by the same $3,000 to offset it, the net amount of the sale (purchase minus trade in) is the same, so the taxes would be the same also.
It's IMHO just a sales trick. Most people know what their unit is worth on the open market, and if they've been to another dealer already they know what the average dealer will pay on trade in. The goal is that the customer will think they've hit the jackpot when they hear the dealer will allow more than double what it's worth and buy the new unit, regardless of the price.
