How are trade-in appraisals and exchanges handled at dealerships?

[jaye944]

and ok this is canukland here but I'm sure this is global

when you trade-in at a BMW (or even a non-bmw dealer) and lets say your trade in is a significant ammount

Do they do an appraisal on the car, if so is it a quick walk around, or do they put it on a hoist

carfax etc yes ok, do they check the codes etc on the OBD

IF say they give you an appraisal there and then of $xxxx, you make the deal pay for the car etc, take delivery, IF they miss something, or being unscrupulous can they call you back after the deal and say... OH BTW we found this was wrong and we didnt figure on it, you owe us 3 grand back

Reason I ask is.. on my old recipt I found a part in the contract for trade-ins
the part is

"The Trade-in at time of exchange will be in the same condition (reasonable wear and tear excepted) as at the time of appraisal. Should the trad-in not be in the same condition. I agree to either pay for any necessary repairs or reduce the trade-in allowance accordingly."

There's some more but this is the jist of it

cheers


I remember seeing some story, on a forum, a women, drove her broke car into a dealership, the salesmen gave her a line, she bought a new car, and took a good deposit for the car on trade-in. then found out later the tranny was shot, they tried to get money back from her but she said go fish as they had tried to be dishonest with her in the first place... or summet like that

[allinon72]

This will vary by dealership, but they typically do a relatively quick appraisal, less than 30 minutes. They don't have a ton of time to go in-depth with each car, but they do build in costs for refurbishment. Of course there will be times where they take a car in on trade that turns out to have problems, but I think it's rare that they would go after the former owner.

[StuP]

They'e commercial traders playing the volume game, they make make a bit more, or a bit less, but it evens out.

If they buy a lemon, provided you didn't misrepresent it, I'd expect they'd eat it.

Same way if you buy a used car from a private individual, once you hand over the money and take possession any problems become yours.

[jaye944]

many txs on that appreciate !

J

[kivyee]

Typically the sales manager or general sales manager will do the valuation. They look for evidence of accident repair and take it for a test drive, checking for mechanical faults, heater/AC etc. The competent ones will have a good idea what repairs/maintance is needed to get it "good enough to sell" and offer you an amount that will cover that and profits. They will typically run a car fax, especially for a higher dollar trade.
As a general rule used cars are quite profitable for the dealer. Unlike new cars where there's a wealth of pricing information, used car prices are much more variable as it is heavily dependent on condition...Where there's disparity in access to information, there's profit to be made. All this to say that they will be pretty careful in finding the lemons.
Personally I've never heard of a dealer going back to a client and asking for more money. They KNOW people will trade cars to them with issues and the onus is on them to catch it and cash in.
The wording you have is more if they valued your vehicle and you bring it back substantially different, e.g. with different rims etc and was not previously agreed to.

[jaye944]

hey txs man,

for echoing the other replies. I'm fine with them doing whatever they need to do beforehand but, what I don't want is any comebacks.

and yes I think that was what the fineprint was suggesting, they do the appraisal and when you go to drop off and pick up, you've swapped the rims over or hit a ramp, or what ever LOLZ

thnkxsa

Originally Posted by kivyee

Typically the sales manager or general sales manager will do the valuation. They look for evidence of accident repair and take it for a test drive, checking for mechanical faults, heater/AC etc. The competent ones will have a good idea what repairs/maintance is needed to get it "good enough to sell" and offer you an amount that will cover that and profits. They will typically run a car fax, especially for a higher dollar trade.
As a general rule used cars are quite profitable for the dealer. Unlike new cars where there's a wealth of pricing information, used car prices are much more variable as it is heavily dependent on condition...Where there's disparity in access to information, there's profit to be made. All this to say that they will be pretty careful in finding the lemons.
Personally I've never heard of a dealer going back to a client and asking for more money. They KNOW people will trade cars to them with issues and the onus is on them to catch it and cash in.
The wording you have is more if they valued your vehicle and you bring it back substantially different, e.g. with different rims etc and was not previously agreed to.

[10"]

Usually a quick 15-20 min appraisal. Minimal details. They run the VIN. They take a quick drive. The end. Anything more than that and you should walk to the next dealer...

Some trade ins get kept at the dealer but the vast majority of them end up at auction. Dealers don't care that much...

[jaye944]

oh wow, cool txs

Originally Posted by 10"

Usually a quick 15-20 min appraisal. Minimal details. They run the VIN. They take a quick drive. The end. Anything more than that and you should walk to the next dealer...

Some trade ins get kept at the dealer but the vast majority of them end up at auction. Dealers don't care that much...

[TXSTYLE]

In short... They give you the absolute LOWEST price/return possible and then sell it for the absolute highest price possible and repeat.

[StuP]

Originally Posted by TXSTYLE

In short... They give you the absolute LOWEST price/return possible and then sell it for the absolute highest price possible and repeat.

Exactly, they're running a business trying to maximize profit.

[TXSTYLE]

Originally Posted by StuP

Exactly, they're running a business trying to maximize profit.

Code word for, "F****** you over every possible chance."