Maximum % of trade in vs purchase price

[s4tronic]

Has anyone got any experiences in trading in cars that are of similar (or slightly less) value to the car that you're looking to buy?

I.e. I have £25k car and looking to buy £27k car - do you I have any chance with dealers or should I be looking at the private sale?

I'm happy to take a hit on trade - in value (£1-2k tops) to save hassle but still not sure if dealers generally accept such high value trade-ins?

[anonymous-user]

They won't care as long as they can make their margin on the deal. The deal you can get will depend how much profit they have on the car you're looking at buying and how much profit they can see in what you're trading in.

The only way you'll know the actual numbers they'll give is to try.

[andymc]

well I would expect them to want 15% across your car as a minimum

[Pork]

Surely it depends on your expectations on the value of your car. Where has the £25k value come from? It that trade in price?

If its retail, I think you'll be looking at considerably more than the £1-2k you have in your mind. If you've got a trade price and are happy to give £1-2k, then I think you'll do a deal. Id say the expectations of you cars value will determine if you'll do a deal or not.

[HTP99]

Assuming that your £25k car is retail money then the trade price may well be £22-£22.5; lets say best case scenario you are offered £22.5k, their car is £27k so without a big of haggling you are looking at a cost to change of £4500, but with regards to the car that you are interested in buying there are so many factors as to how much you will get off, if anything.

When it comes to used cars there are no hard and fast rules of values and what discount you will achieve, their car could be the cheapest one in the country in the best spec, in that case you are unlikely to get a penny off.

[s4tronic]

Of course I know the difference between trade price and private and my question was more if there's a limit in %diff between trade in and purchase price i.e. trade in should not exceed 75% of the advertised price etc.

[HTP99]

s4tronic said:

Of course I know the difference between trade price and private and my question was more if there's a limit in %diff between trade in and purchase price i.e. trade in should not exceed 75% of the advertised price etc.

No there is no limit, why would you think there would be, but then I guess it is up to each and every individual dealer with what they want to do however it's never been a problem at all the places I've worked for, sometimes we give money back.