What does it mean when dealers talk about trade-in “allowances” when I try to trade my old car in for a new one?
The allowance stratagem is used by dealers who suspect what you receive for your old car is more important to you than the discount off the sticker price of the new vehicle you are buying. Be warned. A healthy allowance for your used-car will remove most, if not all, of the discount you could have gotten on your new car purchase, but you won’t likely notice it. Allowances confuse the two main issues you want kept separate. The first issue is to sell my used car. Then I might buy a new car from you, Mr. Dealer-wheeler. Tell the dealer you are not interested in allowances; you want to know how much they will pay you for your used-car even if you don’t buy a new one from them. It’s actually best to first sell your used-vehicle in the dealership used-car department, then come back the next day and shop wisely for your new car.You will save the most money this way, even if have to cab it for a few days or rent a car for a few weeks. The buying and selling of vehicles occurs 40 million times
