is there a general rule of thumb for trade ins?

[the_r_sole]

I guess there will be some variation, but does anyone know what kind of profit % a dealer would be looking at on a car?
I'm currently trying to negotiate one but I've managed to move them a bit on the trade in value but we're still some way apart, I know they need to make something but I wonder how far is realistic to push them!

 

[Scania]

Depends entirely on what your buying, what your trading in, how much profit the dealer has in your prospective purchase and a whole host of other things.

Keep on pushing, if he won’t budge within your target range and assuming your not looking at something rare / exotic then simply walk away and go look at the next one.

You’ll probably find he soon calls wanting to talk again!

 

[Joe T]

Pretty much a minimum of £1,500 between trade and retail. Increasing once the values are past say £15k or £20k.

Rule of thumb: trade values are almost always less than you think!

 

[matthab]

I normally compare what's on the market at the moment and take a percentage off (depends on the car). I also compare used car guides to give me a book quote. I have had dealers offer £1500 off the book price alone.

It always depends on the deal and whether its easier getting money off the car or getting more on the trade in. When I was negotiating my wife's car I knew he wouldn't drop the car anymore as it was a good price, but he was able to give me another £1k on the trade in.

 

[HangTime]

£1500. The last car we traded in was put back up for sale initially with a £1700 markup, subsequently lowered to £1250. Don't know if it sold at that price or not, but I assume there or thereabouts. For more expensive cars, I assume a higher markup in nominal terms if not percentage.

If you think about it, unless they are fleecing you on the car you are buying, they need to be clearing a grand to make it worthwhile, when you factor in labour, valet, storage, cosmetic touch-up etc. Depending on the vehicle and dealer, it may go straight to auction anyway.

All you really need to care about is the delta between the car you are buying and the car you are selling, and whether that is in the right sort of ballpark compared to just selling your car elsewhere and buying the new car outright. Getting less for the trade-in is OK if you've got a market-leading deal on the car you are buying and the reduced hassle of trade-in. Invariably you will get low-balled and it can pay to shop around, if there are multiple options for the sort of car you are looking for. Last time out, we visited 3 franchised dealers (same manufacturer) and even after negotiation got three different offers.

 

[DarrenM343]

Depends how much the car is worth but on anything fairly cheap I'd just trade it in and try to push for a good deal. I traded in a car recently and the trade in vs what I'd probably get selling privately was about £1k. So zero hassles (tyre kickers, time wasters) and no come back if anything is wrong when you trade it in. My car was in a good condition but a had a few little niggles when I traded it in and needed stuff like wheel refurbs, some paint touch up.
I'd care less how much profit is in it for the dealer, more about what the trade in is vs selling privately. Dealers have to make a profit and provide some sort of warranty.