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Recently, I have seen a few posts where, someone is shocked that thier Camaro has lost value, simply by going with one or two lowball offers from a dealer. (sure cars do depreciate), but not necessarily to the lowball offer.
First of all, I have found using the NADA guide, has been much closer to real evaluation and is also what banks use to determine loan value.
Second of all, when trying to sell your car to a dealer, the circumstances can make a difference in as much as a several thousand dollar difference... Example below:
1: simply going to dealer and asking what will you give me for my car? You can certainly expect a lowball wholesale offer. They are in the business to make money.
2: going to. Dealer and seriously considering a purchase, then negotiate the purchase price, then say you want them to consider trading in your car. The trick here, is your already have locked in the purchase price (never go in saying I want a car for x amount a month, or I am looking to trade in my car). Now that the purchase price is locked in, if they offer too low for your trade, you can reject or negotiate. If they have a strong motivation to sell you the car, they are more likely to offer more for your trade.
If you are looking at a used (like new) car, you never know what they paid. They may have acquired it from someone desperately needing the money, and they got it with a lowball offer.
In this case, the dealer may be making such a good profit that they can afford to pay higher for yours.
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