When going to buy a car there are a few things that every buyer should know in order to be better prepared to make their best deal and drive away with the car that you want. If a buyer has a trade in they should take a look at the value of that trade in and know that whatever the dealer offers for their car they do have a choice. As dealers may at times put the price of their vehicles on the widow sticker people often think that they can negotiate down from the listed price and at the same time negotiate up on the amount of money they will be trading in.
The truth is there is only so much money available for a dealer to work with and they can either come down off the price of the car that they are selling or come up on the amount of money that they are willing to give in trade value, but there is not enough room in the deal for a sales person to do both. Some people are under the impression that negotiating a car deal can never go in favor of the buyer and that car dealers are just ripping them off, but this could not be further from the truth.
Car dealers are first off in business to make money and naturally want to earn as much as they can. However, when the considerations of all the people that are working for the dealership are factored in the amount of money made from each car sold has to cover a great many business expenses and salaries outside of what the dealer and the sales person make. With this in mind there is a few hundred dollars and possibly up to a thousand dollars at play in the deal.
When a dealer makes an offer to buy a trade in vehicle they are looking into what it will cost them to refurbish the car and either sell it on the lot themselves or take it to an auto auction and sell it. In either case they have to make more from the sale than they paid for the vehicle so they will come in low on trade in price because they want to create as much space as possible for negotiation off the sticker price of the new car. When an offer comes in low on a trade be prepared to take more money off the sticker price and do not be offended by the low ball offer that the trade manager makes, instead get excited that you can take more money off the sticker price and keep in mind that there is a balance of low and high. Just like a teeter totter as one side goes up the other comes down and the trick is to get the teeter totter to balance evenly in the middle.