How Do 4S Dealers Handle Trade-in Vehicles?
1 Answers
According to used car professionals, the trade-in prices offered by 4S dealers are generally slightly lower than the direct purchase prices from used car brokerage firms in the market, as most used cars acquired by 4S dealers are ultimately sold to these brokerage firms. Additionally, there is often a difference in the discounts available for new cars between customers who trade in their old vehicles and those who purchase directly. In other words, when you trade in your old car to a 4S dealer, which then sells it to a used car brokerage firm, which in turn puts it up for sale in the market, profits are made at each stage of this transaction. Think about how much money you're losing in the process. Even if your old car is to be scrapped, as revealed by used car professionals, 4S dealers hand it over to them for processing, and naturally, they also make a profit from it.