Educate Me Re: Dealer Trades

[futzin']

Anyone know specifically how these work? Do they negotiate? Does the dealer being approached have to do it (I'd think not)? Would the instigating dealer have the same amount in it as the other dealer? Is the buyer better off dealing with the dealer with the desired vehicle in the first place?

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[Renegade]

Are you trying to trade your current vehicle in at a dealership which doesn’t have the Gladiator you want in stock? Yes, everything is negotiable. One advantage to trading is sales tax savings. You generally only pay sales tax on the positive difference in the value of the vehicles.

 

[endurojeep]

Typically atleast in my experience dealer trades really don't offer any advantage. The only reason I do everything with dealer trades is I really like the family dealership I work with and I feel they always do right by me. I have bought my last four new vehicles from them and intend on getting my JT there as well and three of the four were dealer trades

 

[futzin']

Are you trying to trade your current vehicle in at a dealership which doesn’t have the Gladiator you want in stock? Yes, everything is negotiable. One advantage to trading is sales tax savings. You generally only pay sales tax on the positive difference in the value of the vehicles.

No trade. I'm asking if the dealers have to negotiate with each other in a dealer trade situation.

Typically atleast in my experience dealer trades really don't offer any advantage. The only reason I do everything with dealer trades is I really like the family dealership I work with and I feel they always do right by me. I have bought my last four new vehicles from them and intend on getting my JT there as well and three of the four were dealer trades

Thank you.

 

[NC_Overland]

No trade. I'm asking if the dealers have to negotiate with each other in a dealer trade situation.



Thank you.

No. They just have to call to see if its available. The only way it should effect the price you get as a consumer is if its a distance away and they have to figure in transportation cost. Mine came from another dealership across tow and the sale guy just drove over and picked it up. I got the same deal I had negotiated on one sitting on their lot. In the end, I decided to I really wanted to have Sting Gray and they made it happen.

 

[TPiz]

Usually you will be able to squeeze a better deal of the one in-stock vs. having them dealer trade for another one...depending on the distance. Pricing can come into effect if the combo you want is a rare option and are limited in the market. Or if the other dealer has installed additional equipment can impact the pricing.

 

[NC_Overland]

I lucked out and got a free set of all weather slush mats since the other dealer had installed them as an add on (not on the window sticker). I later discovered that my bluetooth speaker was missing, but the dealer ordered me a new one.

 

[LidLess07X]

I worked in the car business as a salesman and closer in the late 90’s. Things may have changed since then but here is some basic info about how dealer exchanges typically go

dealers do not have to give up a unit if they don’t want to

if they have a desirable unit(say a Mojave right now), they can ask for another hot seller in return. (I’ll give you my Mojave if you give me your HellCat Redeye)

sometimes they will just let it go for invoice minus hold back

There is a cost listed on the invoice known as hold back. This is money the dealer gets to help with their floor plan( money to cover the interest on in stock units).
This is usually kept by the original stocking dealer when a vehicle is exchanged so you usually pay a little more.

 

[Happycoop]

When I bought my last Jeep it was on a dealer trade. I had Dealer A that I was working with (who offered the best price off invoice, but didn't have the Jeep I wanted). I found the exact Jeep I wanted at Dealer B (who wouldn't budge on price). Dealer A offered to get it and still give me the best price. I called Dealer B and told them, if you'll match the price I'll buy from you...the sales manager flat out told me hell no. So I gave Dealer A the green-light and he had the Jeep moved from Dealer B to Dealer A where I bought it that day.

 

[JTRUBI]

I’m currently a salesperson at an FCA dealership and how dealer trades work is you negotiate for the the vehicle you want and the set price. The dealership has to buy that vehicle from the other dealership. It’s up to that dealership to decide if they will sell it to them or another customer or just hang onto it. If they do sell it, it isn’t sold to the dealership at its advertised cost, it’s sold at invoice plus any dealership fees that dealership wants to tack on. Typically between 500-1000 extra. That plus the cost to bring the vehicle in gets worked into the overall cost. It’s very easy for the dealership that sold you the vehicle to loose money getting a vehicle for you if you negotiate it well. That being said dealerships typically will try and sell you a vehicle in stock as it cost less. But a big enough dealership will bring a vehicle in for you and loose money to make the sale.

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