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Around here I've found that the retail dealers will take a trade in given it is not much more than 10 years old and less than 150k miles. They'll make their money on the new car sale and have less than wholesale in the trade in.
Next they'll put the trade in out on the used lot and ask really stupid money. The car will sit. The reason it will sit, besides the stupid asking price, is that a buyer is going to have a hard time finding a bank that will loan money on a car more than 6 years old and 150k miles. And cash buyers are hard to come by.
Finally once the car has sat unsold they'll run it through the auction. This is where the smaller dealers get in on the action. They'll buy the car at wholesale or less and either provide "in house" financing or have a lender that is more than happy to lend at an exorbitant rate to the buyer. No credit no problem!
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