Auto dealerships consider various factors when determining the value of a trade-in, including the vehicle’s age, mileage and prevailing market prices for similar models. As a result, valuation discrepancies can arise due to differences in opinion or the dealership’s appraisal methods.
It’s no coincidence that the amount a dealer offers a customer for a trade-in is almost always much lower than its actual value. That's where they make their money. And unfortunately, most customers don’t realize the dealership is lowballing their trade when numbers are thrown around and emphasis is placed on the vehicle’s fault. Here are some reasons why dealerships lowball customers’ trades:
When engaging in a trade-in transaction, it’s crucial to maintain proper documentation. This documentation includes the vehicle’s maintenance history, any repairs or upgrades and proof of its overall condition. Providing this information to the dealership can help support your case if you believe they are undervaluing your vehicle. Remember, you always have the option to take your car elsewhere and seek a better price from another dealer.