Quote:
Originally Posted by Nathans_Dad
He will tell you your trade isn't worth as much for reason X or Y knowing that your trade is well worth more. That's not honest.
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All a dealer will pay you for your trade-in is wholesale bluebook. But you won't be told that. You'll be misled to believe you're being paid much more. If you want to know how it works, read my post #44.
Regarding the profit that the dealer makes on a car, it's the same no matter how much the buyer pays to buy it. The salesman absolutely knows the lowest price that the dealership will accept and the salesman has to sell the car for a higher price than that - because that is the salesman's 'take'.
So, when you're bargaining with the salesman, you're not bargaining with the dealership, you're bargaining over what the salesman is willing to 'take'. The dealership will always get theirs and theirs is always more than what they paid the car manufacturer for the car, which is their profit.
Considering that, if I owned a dealership, had 10 salesmen and 9 of them sold my cars at a high price and the 10th salesman sold my cars for very little more than the lowest price he was allowed to, and that salesman sold more cars per month than the other 9 salesmen combined, he would be my best salesman by far, because I make the same amount of money on every car sold.