Many customers have a trade in that they want the dealer to buy. It’s obvious that dealers buy at wholesale and sell at retail, but there are many things that the dealer can do to make the trade in look like it’s worth much less than it really is. First and foremost, a great number of people really don’t realize what their car is worth. People usually do the appraisal by someone other than the sales person who is working the deal. There are two benefits to the Dealer occur: Firstly, when the number comes back, the sales person can blame the low-balled number on someone else while he/she builds more rapport with the customer (it’s me and you against “them”). Secondly, since the appraiser is regarded as an “appraiser”, there is an instant credibility given to the resulting number. Of course, anything and everything that could possibly be wrong with the car, even if only suspected, the Dealer presumes an expensive repair is needed. Also, no matter what the trade in is, you can always count on the Dealer saying that this car just isn’t a hot seller that’ll be easy for the Dealer to retail or unload.
