How do I determine the used boat trade-in price (or actual cash allowance)?
A. We do not calculate or publish a used boat trade-in value because every firm has its own overhead or profit margin. Generally, the used boat trade-in allowance used by most dealers is 70 to 80 percent of the current market retail. The reasons for a variation in the margin are numerous but might typically be: size of the organization, whether salespeople are commissioned or employed, building location, yard costs, showroom expense and financial costs. There are two common techniques for handling used boat trade-ins. The first is a little round-about. The dealer allows the buyer of a new boat full market value on his used boat trade-in (exactly what he expects to sell it for) but the new boat is not discounted or is discounted very little. This technique has been used successfully by a number of dealers throughout the years. However, the mathematics become tangled and the cost of the used boat to your business and the possible potential profit that could be derived on resale is confus
