Why do car dealerships rip people off, when trading in another car?

Question

Why do car dealerships rip people off, when trading in another car?

Answer 1

Because they expect to make a profit reselling your trade in.  After you trade it in they have to have a mechanic go over it and repair any issues, as well as have the vehicle detailed.  That is of course if they don't intend to auction the vehicle at a wholesale auction, in which case there are going to be dealers looking to profit from your former vehicle.

Answer 2

If you do some research you won't get ripped off. If one dealer won't be reasonable, go to another dealer. Know what the trade in value of your vehicle is before you go.

Answer 3

Dealers are not going to pay you any more for your car than they pay for a similar one at auction,  unless it's really a unique piece.  Otherwise, it's just a commodity.  It is a business for them and your job is to know what your car is worth before you go to the dealer.  Always know that  you'll get the most money out of a trade if you sell it private party.  If a dealer low-balls you, the best tactic is to simply leave!

Good Luck!!

Answer 4

well yes and no

they give you less for your car than you could get selling it any other way.

so as long as your willing to accept that

your not getting ripped off.

Answer 5

Well for starters, if you feel you are being 'ripped off' then you can choose to not accept the trade and go elsewhere, or negotiate a better deal.

Car dealers are just like any business. They have to make money to pay bills, wages and to buy new stock. They also have guidelines that they must follow or risk losing their licence.

If they can get a car cheap and resell it with some profit, then they are only doing what business is about.

So, why slag off car dealers. What about car wreckers. When I managed a wrecking yard, we bought cars for as little as $50, often we got them for nothing,  but we still had a set price for every saleable part on the car. Just because we bought the car for $50 didnt mean we sold the motor any cheaper.

Its business, thats how it goes.

Answer 6

For 2 reasons, one is so they can make the biggest profit possible when they sell it and 2 because it means they can get more money out of u for ur new car

Answer 7

they do it because they know you have to get rid of it and selling yourself can be a hassle at times and much easier trading in rather than trying to sell on our own.

  what I do is go to edmunds or kelly and find out what my trade is worth along with finding what the new car is worth than I make deal on new one than tell them I'll trade mine in and see what they will give me and if not what the books says than I tell them that's not enough and if they don't give me book value I'll not buy the new one from them so they always either give it to me or are very close.

  so do some homework first and you'll be far better off when going in knowing the price on the new one plus what your;s is worth.

  remember they don't care about you even though they act like they do so don't let get into your head, find out the new cost and your trade value  and you'll be fine as they can' t feed you any bull.