(Generally) How much do dealerships "mark-up" when doing a part exchange on a car?

Question

<Addded details 12:32 GMT> I ma considering trading in our car as we no longer need something as big, because it has high milage and because we want something newer. I wasn't expecting to get much over £1000 for it however I looked on Auto trader and there are worse off vehicles of the same model, with higher milage and older selling at £2995. What are the estimates as to what I'll get for my vehicle?

Answer 1

Depending on the age of the vehicle, condition and mileage.

If the car is in amazing condition and ready to go on the forecourt then they will up your offer. If the car is damaged and high mileage then they mark it down. However you will notice your new car will not change value regardless. They want to make money on the part-ex, so if it is part of the franchise to sell your car they will give you a bit extra, but if not they will pay off a small time car salesman to sell on their behalf who will require payment at the end of the day too. If the car is beyond a certain sellable age and condition then they will ship it to auction and frequently sell at a loss which they cover in the next part-ex they recieve.

I would play a few dealers and see the value they give your car as the dealers all follow a set guide and the sales manager will tell them to get your car below that price. They have a rough £700 they can straight away knock off the new one without affecting the new cars profit margain and anything over that will come out the dealers pocket. Check out Glass Guide/Parkers Guide to find out what they value your car as part ex. Good Luck.

Answer 2

There is no exact figure but just remember that they will not be making a loss on the deal. If they are giving you £1000 for your old car you can be sure that they have at least covered that in the price for the new car.

Answer 3

The simple answer is, as much as they can.

Forecourt prices are high to start with, this is mainly done to cover overheads &amp; to allow a &#039;generous&#039; part exchange value on your old car.

When dealing, focus on the price difference to change vehicles - don&#039;t be swayed be either a cheap price on your new car or a high valuation on your old one.

The large car supermarkets offer poor part ex value because they&#039;ve already reduced their profit margin on the vehicles they sell.

Answer 4

Whatever the think they can get away with. There is a tire store in my town that has a 300% markup on their parts, and you can&#039;t bring in your own.  They were going to charge a friend of mine almost $700 (parts &amp; labor) to replace her front rotors, brake pads, and tie rods on her Intrigue. I did it for her for about $150 in parts, used upgraded parts, and was done in an hour and a half. Payment:  2 cases of beer (and I only asked for one).

Answer 5

I dont know but they take the p**s. My misses paid £12500 for a brand new car on October of last year and the other day the same dealer offered her £8000 for it! The hilarious thing was (which I did point out) they had the exact same car with the same amount of miles up for sale for £10000 and my misses one has all the extras like climate control, auto wipers/lights etc etc!

Tossers......