There are ads claiming that no matter what condition you trade is in, they’ll give you $1500, $2000, or even $3000 for it in trade.
Foolish people flock in. Some even drive off with a new or used car. They were paid $3,000 for their 1983 Chevette and they feel like they just ripped somebody off. The truth is that they probably just got ripped off.
Most car dealers have around $2000 to $2500 worth of markup built into the price of their lower end vehicles and more (sometimes much more) built into their higher priced ones. When they put on their Push, Pull, or Drag sale, all they do is mark up their vehicles an additional amount equal to their “minimum trade allowance.” They can give you a ton for your Chevette and still make thousands by doing this.
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