dealership trade in value????

polkaking27 · Outlaw Joined: 31 Jul 2004 Posts: 142 City: Vancouver

Do dealerships usually offer a certain percentage below low blue book for a trade in. How do they come up with the ridiculously low offers for trade in values??? does any one know?

boarditup · Addict Joined: 01 Dec 2003 Posts: 731 City: Allendale, MI

Here is the inside scoop:

With all of the admin involved in taking in a trade, clean up, inspection, refurb, taxes, figure about $2,000 in COST to the dealer. After that, there has to be profit and commissions. Since watersports is a very low volume business, dealers have to make at least $2,500 per used boat to keep the lights on, hopefully more.

The buyer obviously wants the best deal possible and wants to eliminate that cost and profit. The dealer's interest in survival means that he has to maximize profit.

On each deal the dealer has a "walk away" figure where it no longer is a deal they can take. Buyers typically want to get as close to that figure as possible. Dealers want to get as much above that figure as possible.

Buyers tips:

If you are a regular in the pro shop, you will get a better deal.
If you are a prick, you will get a worse deal.
If you are positive, polite, and treat the dealer with respect, you wil get a better deal.
If you seem to be high maintenance, you will get a worse deal.
If you regulary use the dealers service departement, you will get a better deal.
If you only darken the door with a complaint and expect free work, you will get a worse deal.
If you bring in friends to shop, you will get a better deal.
If your trade needs work to sell, you will get a worse deal.
If your trade is showroom ready and had regular maintenance in the dealer's shop, you will get a better deal.

See the pattern?

polkaking27 · Outlaw Joined: 31 Jul 2004 Posts: 142 City: Vancouver

boarditup
That is exactely what I was looking for... Thanks. I guess it makes sense why they lowball you so much, they're not looking out for the customer, they have to make money. Good explanation Thanks again

knelems · Criminal Joined: 13 May 2004 Posts: 51 City: Jasper

Also don't forget we as dealers don't have wholesalers like the auto industry that we can move our trade-ins to. Our money is tied up till we can move your trade-in. If the dealer already has several trade-ins in stock it is harder to make some trades. The boatshow season will help the dealer get more cashflow so check back with him after the show.

ridehyperlite · Criminal Joined: 09 Mar 2005 Posts: 97 City: Albert Lea

All very good points. The trouble for low volume dealers is that these newer wakeboard boats have such high resale values, it is hard for a dealer to tie up 25k+ in a used boat.