Should NADA be banned?
Stopped in to a dealer the other day looking for an item, and they happen to sell Airstreams. So just for fun, I wandered into one to take a look Ridiculously overpriced, but they are nice. Of cou...
Forum Discussion
When every one understands that when you trade in a vehicle. All trade-in vehicles are priced by the dealership as 'wholesale'.
Just really think about it, they have to price/sell it for retail to make any money. They can't actually take your vehicle in at what NADA or any other book says because that is RETAIL price. So how would they make any money on it selling vehicles if they paid retail for it?
No one would ever trade their vehicle in if they KNEW what the wholesale number was on their trade in.
They actually have what is referred to as a wholesale black book. Trade in figures based on what they are bring at the 'local' shoots, I.E. at auction. This book is updated quarterly to reflect auction price fluctuation.
Henceforth the dealerships bring in all trade-ins at 'wholesale' price and play with the profit margin numbers on what you are buying to make it APPEAR they are giving you more money for your trade in.
Just ask the salesman what is the ACTUAL 'wholesale' price they are taking your vehicle in at? After his jaw drops and he tells you, then you know where you are really at between the trade and new.
Been there done that sold cars in my past life. Not proud of it but it paid my bills!
Just really think about it, they have to price/sell it for retail to make any money. They can't actually take your vehicle in at what NADA or any other book says because that is RETAIL price. So how would they make any money on it selling vehicles if they paid retail for it?
No one would ever trade their vehicle in if they KNEW what the wholesale number was on their trade in.
They actually have what is referred to as a wholesale black book. Trade in figures based on what they are bring at the 'local' shoots, I.E. at auction. This book is updated quarterly to reflect auction price fluctuation.
Henceforth the dealerships bring in all trade-ins at 'wholesale' price and play with the profit margin numbers on what you are buying to make it APPEAR they are giving you more money for your trade in.
Just ask the salesman what is the ACTUAL 'wholesale' price they are taking your vehicle in at? After his jaw drops and he tells you, then you know where you are really at between the trade and new.
Been there done that sold cars in my past life. Not proud of it but it paid my bills!
