Trade-In Value + Auto Buying Programs

[Mide]

So I was just wondering...I have options with USAA and Costco for them to essentially get me their lowest fleet pricing on a new car. Although this would work great if you were paying all cash or had a loan setup, what happens if you have a trade-in car?

If you think about it, wouldn't a dealer just give you the low, already bargained price of the new car and then give you a piss poor trade-in value to makeup for any loss of profit?

 

[Proprioceptive]

YEP.

My local Hyundai dealership was offering to pay your first four month's payments up to $1,500. They touted it as an additional incentive, but when the deal was broken down, they just sold you the car at sticker to cover their "loss" and gave you a crappy trade in value. Seriously? Who wants to have your first 4 months payments "paid" for when you can just put that money as a down payment and lower your payments?? It's sad how some dealers get you on the lot... and even sadder that some people fall for it.

 

[radioouman]

An auto buying program is just a way for someone to make some money on you.

Let's say that a car has an MSRP of $20,000. I set up a buying service and can get you that car for invoice $17,000 + $800 dealer profit + $500 buying service. I offer you a price of $18,300 and you take it. I make money, dealer makes money and everyone is happy. Oh and then you sell your existing car at Carmax.