I just got a call from the dealership telling me that my Prius is in. I am still talking with them about trading in a vehicle. I was curious.....does the amount they give you for your trade depend on what you vehicle you will be buying? For the Prius they said they would give me 5500, but at a different dealership in the same family they would give us 7000 if we were trading it in for a new Jeep Wrangler. Just wondering if anyone knows why this is, and if you have experienced or heard of anything like this (I just want to make sure I am not getting taken for a ride on the trade in value). Thanks!
My guess, is that the demand for Jeep is a lot lower so they are willing to give you more for your trade in. Also the profit margin is probably higher on the Jeep so they have more wiggle room. Also remember that the price you get for your trade in is usually thousands less than if you sold yourself.
What are you trading in? If it's an SUV or anything like that take the money and run. If not, you'll probably get more money in a private sale. Check Kelly blue book for going rates for private sales.
There are two reasons why. #1 The Wrangler isn't in high demand and would be more willing to deal to move it. #2 The profit margin on a Wrangler most likely is higher. Toyota cars in general have much smaller profit margins for the dealers. They price their cars more competitively to start with that is also why you don't often see Large Rebates for any Toyota either. (Except for the Tundra right now)
The Prius dealer may offer you less for your car because the Prius is in high demand. If you turned the deal down the dealer would go to the next person who is willing to take the deal. I don't know what you are paying for the Prius, but the dealer can make money on both sides of the deal.
For the OP, and any other new posters: please try to be a bit more descriptive than saying "Question" for the subject. I often skip threads like this. I figure if the poster can't take the time to phrase a real subject, I don't have the time to read it. Tom
Check Kelly Blue Book on line. Then, consider this: - Toyota dealer will give you a the lowest price - Jeep will give you a good price - selling on your own will give you the highest price I have a Honda Civic, the Toyota dealer will only give me $1000 as a trade in. The Honda dealer is going to give me 4 times that! I "could" make another bit selling myself but . . . I only have one vehicle and don't want to be messing about with plates and insurance, so I'll just take it in to my Honda dealer. BTW, Honda dealer thinks I am just cutting back to 1 vehicle, does NOT know I am getting another vehicle. I had to sell my Dad's Jeep last month and, using Kelly Blue Book (which was not redone with the jump in gas prices, IMO), I got "almost" what the Blue Book listed for resale. Good luck, you'll be glad to be rid of the gas hog; I sure was!
Not necessarily my Toyota dealer gave us $1500 for our 1991 Ford Explorer for our trade in and it needed some serious side body work from someone running into it. They also honored an advertised deal and sold the car for about $1000 under the MSRP. But of course that was March 2007 and the dealers weren't moving them nearly as quickly then.
Read www.carbuyingtips.com. If the dealer is offering an above market price for your trade then they are making it up in the price of the new car. Offer to sell your car for that price and you'll see the offer evaporate instantly.
