Planning on doing a trade in for the Ascent. Anyone can shed some light on what the best approach is? How to do it in our favors? And is it negotiable? I don't do trade in much (at all) so this is where I'm busted. Thanks team!
Everything is negotiable, remember that. Sometimes it does require someone to walk away from a deal, but it is negotiable in the end.
I have almost always traded in my vehicles. I am in MN and we have state sales tax on vehicles at a rate of 6.875% Sales tax is only charged on the trade DIFFERENCE. That is $68.75 on every $1000 dollars. So, if they allow me $20K for my trade, that comes off the top and saves $1375 in sales tax paid. In this example, I would have to sell this vehicle outright for $21375 in order to come out. I also feel my time is worth something and I don't have to waste my time driving to meet people, have them test drive, negotiate with them and hope their money is good. I find value in this.
Before trading, I will do a full detail on my vehicle and will work this in as part of the deal. Normally I have been able to get them to adjust my trade $200-250 since they will not have to perform a full detail. I keep our cars clean, so doing a final detail does not take that long and I already have the components to do it. I also realize and let them know that I am aware they need to make money on my vehicle. I will take the time to look at the market and see what similar vehicles are listing out for. I try to get about $2000 less than what the market is showing. This give them room to do their inspection, carry the vehicle for a bit, pay out a commission... I feel it is fair and seems to work as my vehicles don't sit on the lot long.
I also remind them that if they want full MSRP for their car, I want my trade valued at MSRP. Retail to retail or wholesale to wholesale. Based on this, I also determine what I feel the trade difference should be. I don't really care what pricing they show for their car or my trade, just that the difference to trade is where I think it should be based on this.
I admittedly am not a hard negotiator. I am always willing to settle for a deal that I feel is fair to me and fair to the other party. Everyone should walk away feeling good, this builds relationships and helps with getting some extras now and then and getting treated right for service. I am sure others may have some harder tactics, but this is what has worked for me and what I feel good about.
Good Luck