According to a new study published in The Journal of Industrial Economics, car shoppers who have a trade-in pay $990 more on average.
The study looked at data from hundreds of thousands of new and used car transactions in the United States and found that when customers have a trade-in, dealers are more likely to offer a higher price for the car they plan to purchase. This is because dealers expect customers with a trade-in to be less price sensitive.
If you're in the market for a new car and have a trade-in, you may want to factor this into your negotiation strategy. Here are some tips for negotiating the best price on your new car, even if you have a trade-in.
Do your research ahead of time so you know what the fair market value of your trade-in is. Kelley Blue Book is a great resource for estimating the value of your trade-in. Also the trade-in tool on Mike's Car Store Website https://Mikescarstore.com
Know what you're willing to pay for the new car before you ever step foot into a dealership. Use websites like Edmunds.com or TrueCar.com to see what others in your area are paying for the same car.
Don't reveal that you have a trade-in until after you've negotiated the price of the new car. Once you've reached an agreement on the price of the new car, then you can tell the dealer about your trade-in.
Keep in mind that you're under no obligation to take the dealer's offer on your trade-in. If you don't like their offer, you can always sell it yourself or use it as leverage to get a better deal on the new car.
A new study shows that shoppers who have a trade-in pay $990 more on average for their new car. If you're in the market for a new car and have a trade-in, there are some things you can do to get the best deal possible. Do your research ahead of time and know what you're willing to pay for the new care before stepping foot into the dealership. Watch all the tips that Mike Davenport Chevy dude talks about on his youtube channel.
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